Businesses have become more dependent on online marketplaces to reach new customers and sell their products. While marketplaces can be a powerful tool for boosting sales, entirely relying on them is not a great idea as it can make your business vulnerable to changes in its policies. And as you’re probably aware, changes in marketplace policies might also mean fee adjustments. The good news is that you can reduce reliance on online marketplaces and create a more sustainable business model by leveraging analytics. Through analytics, you’ll gain significant advantages as you’ll gather valuable information about your business’s performance, customer behavior, and sales patterns across all your marketing platforms.
Read on to find out how analytics can help reduce your dependency on marketplaces.
Using Analytics in Business
Analytics is essential to business decision-making, providing insights to help businesses improve their performance and stay competitive. One area where analytics can significantly impact a business is by reducing its dependence on marketplaces. Here are the four types of data analytics:
Prescriptive Data Analytics
Prescriptive data analytics is a type of data analytics that uses advanced algorithms to give action recommendations. Businesses can use this type of data analytics to simulate various scenarios and provide them with suggestions on the best course of action.
When it comes to reducing dependency on marketplaces, prescriptive data analytics can be used to determine the most effective strategies for expanding into new sales channels and diversifying revenue streams. By examining data related to customer behavior, sales performance, and marketing campaigns, prescriptive analytics can recommend actions such as investing more in email marketing or trying out different pricing strategies.
Predictive Data Analytics
Predictive data analytics uses statistical algorithms, machine learning, and historical data to anticipate future results. Businesses can utilize predictive data analytics to lessen their dependence on marketplaces by gaining valuable insights into customers’ preferences and behavior.
For example, businesses can employ predictive data analytics to identify products more likely to be bought by customers and the most effective marketing channels. This data can then be used to customize marketing campaigns, product offerings, and pricing strategies. Moreover, this data analytics can anticipate how your business will perform over the upcoming season or how well your products will sell next month.
Descriptive Data Analytics
With descriptive data analytics, businesses can monitor their sales performance and detect patterns and trends in their data over time. With this information, businesses can make data-driven decisions on where to allocate resources and how to invest in new marketing or sales strategies.
Descriptive data analytics can also analyze customer behavior and preferences, allowing businesses to better tailor their products and services to meet their customers’ needs. A great example is determining the most viewed products and which months they have the most sales increase. Once they know this information, they can display these products more, making them readily available to the customers.
Moreover, with descriptive data analytics, businesses can keep track of their overall productivity. They will know which areas to focus on, leading to improved customer satisfaction and loyalty, and reducing the need for businesses to depend on marketplaces.
Diagnostic Data Analytics
The primary purpose of diagnostic data analytics is to identify the underlying reasons for a particular problem. It uses advanced techniques such as data mining and visualization, and statistical analysis to detect patterns and irregularities within data that may explain the cause of a specific result. Diagnostic data analytics can help businesses reduce dependency on marketplaces by determining the areas of weakness or inefficiency in the sales and marketing processes.
One instance where diagnostic data analytics can be useful is in identifying the stages of the sales funnel where customers are losing interest or dropping out. Through diagnostic data analytics, businesses can make data-driven decisions on how to improve their marketing efforts.
Leveraging Analytics Services to Reduce Dependency on Marketplaces
In addition to the different data analytics, there are also various analytics services to help reduce your dependency on marketplaces. Many of these services come with features designed to give relevant insights into a particular aspect of a business. In general, analytics tools and services fall into the following categories:
The primary purpose of marketing analytics is to analyze campaign performance. This type of analytics service is commonly used by businesses to improve their customer acquisition and conversion rates. Typically, marketing analytics gathers data from various marketing sources like social media, email, and other advertising platforms. Several marketing analytics tools are available, including HubSpot Analytics, Adobe Analytics, and Salesforce Marketing Cloud.
Social Media Analytics
Social media analytics provide businesses with valuable data about the performance of their social media platforms. This analytics service can help you identify popular posts, track audience engagement, and measure conversion rates.
Customer analytics is a service that focuses on gathering and analyzing customer-related data such as buying preferences and behavior. Businesses can use this information to develop personalized marketing strategies and improve customer service. Some examples of unusual customer behavior can be tracked through the retention report.
Web analytics is a service that allows businesses to analyze and evaluate their website’s performance. It generates insightful information on website traffic, user behavior, and engagement, which aids businesses in enhancing their online presence and increasing their website’s efficiency. Well-known web analytics tools comprise Google Analytics, Adobe Analytics, and Finteza.
How to Reduce Your Dependency On Marketplaces Using Analytics
Using analytics can reduce your dependency on marketplaces, resulting in cost savings and increased sales. Here are some ways to leverage analytics to become less reliant on marketplaces.
#1: Gain Insight Into Your Marketplace Sales
The initial step is to understand your performance on these platforms to decrease your dependence on marketplaces. Thankfully, most marketplaces provide analytics for marketing and sales that you can leverage. Utilize these services to learn about the products that sell well, the ones that do not, and the marketplace platforms that generate the highest revenue. With this information, you can formulate strategies to improve your marketing and widen your sales channels.
#2: Expand Your Sales Channels
After understanding how your business performs across various marketplaces, the next step is to consider expanding into additional sales channels. Diversifying your sales channels can reduce reliance on any particular marketplace and create a more sustainable business model. You may want to consider the following to expand your sales channels:
1. Set up your e-commerce website.
Establishing your e-commerce website minimizes reliance on marketplaces and creates a stable and profitable business. It provides a centralized platform for customers to purchase your products and offers you complete control over branding, online presence, and marketing. These are difficult to achieve if you’re managing multiple accounts on various marketplaces.
2. Set up your social media platforms.
Of course, it’s not enough that you already have an e-commerce platform. You won’t be able to drive sales to your e-commerce website if you can’t reach your target customers. This is why you need to set up social media pages. Platforms like Facebook, Instagram, Twitter, and LinkedIn can allow you to engage with your target audience, increase brand awareness, and drive traffic to your website through social media marketing.
3. Email marketing
An efficient email marketing strategy is vital in decreasing your dependence on marketplaces. By building a list of email subscribers interested in your products, you can easily reach out to them and promote your offerings. Unlike marketplaces, email marketing helps establish a stronger customer bond and cultivate trust.
#3: Refine Your Marketing and Sales Tactics
After establishing your e-commerce website and social media platforms, your next step is to refine your marketing and sales tactics. Focus on your campaign strategies and customer engagement. One way to accomplish this is by utilizing marketing analytics software which enables you to track and analyze your campaign results. This approach can help you identify the most effective marketing channels and techniques for generating traffic and conversions, allowing you to make data-driven decisions about where to allocate your resources.
You can also perform regular testing and experimentation with your marketing strategy until you can identify the most effective approach. This might involve exploring new social media strategies or experimenting with different pricing or product offerings. Refine your marketing and sales tactics to boost your online presence, increase conversions, and reduce reliance on marketplaces.
Reducing your dependency on online marketplaces can be achieved through the use of analytics. Analytics provides valuable information about your business’s performance, customer behavior, and sales patterns across all marketing platforms.
By utilizing prescriptive, predictive, descriptive, and diagnostic data analytics, you can identify the most effective strategies for expanding into new sales channels, diversifying revenue streams, and reducing reliance on marketplaces. And with the various analytics tools and services available, including marketing, social media, customer, and web analytics, you can gain insights into improving your online presence and creating a more sustainable business model.