The word in-de-pend-ent is defined as being free from outside control and not depending upon another’s authority. In the final days preceding the Presidential election in the United States it seems fitting to explore the merits of independent thinking and trusted advice.
Is your eCommerce analytics provider independent?
During the past couple of years the landscape of eCommerce analytics solution providers has become increasingly crowded as global online sales have soared past $1.0 Trillion. Today, if you are looking for a solution provider you have many choices, including: placing a bet on an inexperienced, new kid on the block; playing it safe with the earliest and most out-of-touch player; selecting a partner that falls in between these extremes. So, how will you choose and ensure you are getting the trusted advisor that is right for your business?
To help brands navigate the multitude of eCommerce analytics providers we’ve compiled a list of questions to ask during the due diligence process. These questions will help you uncover limitations that a solution provider may have that aren’t visible at first glance.
3 Questions to Ask Before Selecting Your eCommerce Analytics Provider
Is eCommerce analytics its sole business focus?
Before you select a partner it is vital to recognize whether the company provides eCommerce analytics as a sideline business (e.g., in a single division) or whether the entire entity is dedicated to providing eCommerce insights. Ask about how the corporate entity is structured. Who are its executives and key team members? Much of this information can be found through online research. If you don’t see any mention of key members on a corporate website it could be a red flag.
Who are the investors?
Many eCommerce analytics solution providers are privately held. From the outset you should know as much as you can about the investors of any company you are evaluating. Most will be backed by venture capitalists or private equity firms with an eye toward growing the business. However, you should also be sure to ask whether any major CPG has made a strategic investment – and therefore has a vested interest in the firm. If your competitor is backing the company they may not be a good fit for your business. You need to feel 100% confident there is an absolutely rock solid firewall between your confidential business drivers/data/issues and any rival CPG backer.
Are they independent or part of a data-business company?
This past year there has been consolidation and M&A activity among eCommerce analytics providers. It is important to know that the partner you choose will be with you for the long haul. If they have been acquired and are now owned by a parent company you’ll want to research the parent. What are its motivations for the acquisition? Does it plan to invest or downsize the business? Will it be around tomorrow with a commitment to your needs?
In the interest of full disclosure here’s the skinny on Profitero. Profitero is an independent, privately held company that is backed by VCs (not CPGs) who share our vision for the future.
More than five years ago, a team of ex-Google and IBM Watson engineers got together to solve one big problem: giving retailers and brands the monitoring and analytics tools they needed (but didn’t have) for maximizing their eCommerce performance and driving sales.
A partner you can depend on for the long haul
More than 70 of the world’s largest brands and retailers now rely on Profitero for their eCommerce analytics including General Mills, L’Oreal, Beiersdorf, Sam’s Club and Delhaize. With more than 50 percent of consumer packaged goods sales growth expected to come from eCommerce over the next five years, we’re committed to being your partner, not just a platform, to position your business for long term success.