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Calling all geeks: 3 reasons why 2019 will be the “Year of eCommerce Data Analytics”

October 26, 2018
Sandy Skrovan
Written By
Sandy Skrovan

The rise of algorithmic-driven retail means eCommerce Data Analytics is no longer a nice to have, it’s a must-have. eCommerce Data Analytics is becoming a central commercial function, with brands using data-driven eCommerce insights to drive decision making.

Here are 3 reasons why we think 2019 will be a breakout year for eCommerce Data Analytics:

#1. Data Analytics is the window to digital shelf performance

Time and time again, we hear eCommerce teams say they’re flying blind without the right sets of eCommerce performance data or visibility into how they’re performing on the digital shelf. Half the brands we surveyed as part of our 2018 eCommerce benchmarking study, conducted jointly with Kantar Consulting, cite “measuring and reporting on how eCommerce is performing as a distribution channel” as a top challenge.

With the “right” eCommerce Data Analytics solution in place, brands can face this challenge head on to accelerate eCommerce sales growth, grab more online market share, and improve performance and ROI — reason #1 why 2019 will shape up as the Year of eCommerce Data Analytics.


#2. Data Analytics is set to grab more eCommerce budget

According to our survey findings, Data & Analytics services emerge as a critical area of focus and investment for brands.

Three-quarters of brands (73%) say they’re allocating some portion of their eCommerce budget to Data & Analytics services; 40% of brands are allocating more than 5% of their eComm budget to Data Analytics. This level of investment points to the value brands get from having a data analytics solution in place — reason #2 why we think eCommerce Data Analytics will have a breakout year in 2019, and for years to come.


#3. Data Analytics specialists are in demand

Based on our LinkedIn research, scanning thousands of LinkedIn profiles across hundreds of global brand manufacturers, eCommerce Data Analytics headcount is up dramatically (+103%) from a year ago.

We anticipate an even more impressive bump in the coming year as brands add eComm staff across many critical functions. According to our eCommerce benchmarking study, Data Analytics & Insights tops the list of planned hires — making it reason #3 why we’re calling 2019 the Year of eCommerce Data Analytics.


Why eCommerce Data Analytics matter

Measurement & Analytics is called out in our eCommerce Capability Framework as one of eight key workstreams brands must successfully manage to win online.

Specifically, the core activities and tasks of the eCommerce Data Analytics function include:

  1. Measuring and managing your sales and share versus competitive brands across retailers and channels. This will give you an understanding of where you stand vis-à-vis your competitors, especially as it relates to the evolving eCommerce marketplace.
  2. Monitoring and measuring your digital shelf presence and performance, and importantly, stacking it up against industry standards or benchmarks, or your competitors’ performance. This will help shape KPIs and establish scorecards.
  3. Connecting the dots between #1 and #2 to understand precisely how changes at the digital shelf — e.g., in product content, consumer-generated content (e.g., ratings & reviews) or the use of paid search & media — can impact sales and share, and, as a result, ROI.

A common fear for many brand manufacturers is that they’ll be left behind by competitors who have superior eCommerce performance measurement capabilities in place — and consequently have access to better insights for smarter, faster decision-making. These data-driven insights could very well separate eCommerce forerunners from the also-rans.


To learn more about how to select an eCommerce Data Analytics solution that aligns with your business needs and use case, download our guide Developing your Digital Toolkit: A guide to identifying the right technology, data and partners you need to win in eCommerce.

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