Shopify Store Analytics: How to Use Data for Growth

Mehar Un Nisa

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November 8, 2024

Shopify store analytics is a powerful reporting tool and metrics offered by Shopify. It allows business owners to check their online performances. Shopify analytics and reports enable stores to review recent activities and visitors. It helps businesses to track sales, customer behavior, and growth opportunities.

Shopify offers store owners built-in and third-party analytic tools. These tools help businesses to stay competitive in a fast-paced marketplace. Shopify analytics provide insights to all-sized businesses that help them make important decisions.

In this blog, we'll understand Shopify Store Analytics. Also, how these analytics help in business growth and making data-driven decisions.

Overview Shopify’s Built-In Analytics Tools

Shopify offers robust built-in analytic tools to help owners analyze store performance. These tools provide actionable insights and track customer behavior and operations. Shopify analytics has the following main sections:

Shopify Analytics Dashboard

The customizable analytics dashboard page is a collection of data charts called metrics. It gives a quick view of important tracked statistics. The dashboard insights include:

• Total Sales track income over a customizable period.
• Sales By Channel compares how well sales channels are performing.
• Top-selling Products highlight the most sold products.
• Online Store Conversion Rate shows customers percentage who made purchases.
• Online Store Sessions track the number of visits to the store.
• Total Orders measure the total number of orders.
• Average Order Values highlight the average number of spent by customers per order.

Report Section

Shopify offers built-in and advanced reports to provide detailed data metrics. The Shopify report section contains reports on sales, customers, inventory, and so on. Shopify allows advanced Shopify or higher store owners to create customizable reports.

Live View

Live view is the real-time view of the activities in the stores. It includes a world map and globe to show where traffic comes from. It also displays the other key metrics like Live visitors, sales, and orders. The live view is a very useful tool during traffic periods like sales and promotion.

Implementing Google Analytics With Shopify Store

Google Analytics integration is a powerful way to achieve deeper insights. It gives in-depth data about customer behavior, traffic resources, and other performance. This integration optimizes the store for better conversion and sales. Here are the following steps to integrate Google Analytics with the Shopify store:

Create a Google Account To Use Google Analytics

• If you already have Google accounts like Gmail or Ads, then use that account.
• If you don't have an account, create one.
• After creating a Google account, create an account on Google Analytics.

Enable Enhanced E-Commerce Tracking in Google Analytics

• Navigate Admin > View > Ecommerce Settings.
• Allow both Enable Ecommerce and Enhance Ecommerce Settings toggle. Save settings.

Enabling enhanced e-commerce tracking allows users to collect detailed data about customer behavior. It provides analytics about product views, add-to-cart actions, and purchases.

Add Google Analytics Tracking Code to Shopify

• Opening the Shopify dashboard admin. Click Online Store > Preference.
• Paste the tracking code in the Google Analytics account field. Save it and done!

Enhanced e-commerce tracking provides more details. First, enable enhanced e-commerce settings from Analytics. Click Online Store > Preference. Check the Use Enhance E-Commerce checkbox in the Google Analytics account field.

Verify Integration

Verify integrations by opening the store site in a new tab. Browse some pages and navigate the real-time performance on Google Analytics.

Interpreting Shopify Analytic Key Metrics To Drive Business Growth

Running a successful e-commerce business isn't only store creation and product selling. It is important to track the right data to grow the Shopify business. Shopify Analytics provides valuable key metrics and insights to store owners. Understanding these key metrics helps to make data-driven decisions for business growth. Every store owner should track and analyze the following key metrics.

Sales Metrics

Total Sale: Sales metrics highlight revenue generated in a specific time. They contain all data related to discounts, taxes, refunds, and shipping fees. Tracking the sale metrics allows you to compare the sales in different periods. It helps in evaluating the results of discounts, promotions, and campaigns.

Conversion Rate: The conversion rate metrics show the customers who complete purchases. It highlights how well the store is turning visitors into buyers. The low conversion rate may be due to pricing, checkout process, or site usability issues. To improve conversion, optimize the product pages, checkout process, and calls-to-action (CTAs).

Average Order Value (AOV): It highlights the average number of spent by customers per order. AOV helps to increase revenue without increasing customers by offering free shipping upselling, cross-selling, or discounts.

Top Selling Product: It shows the products that generate high sales on the site. These metrics highlight customer preferences. It helps to decide the future inventories for these products.

Customer Lifetime Value (CLV): It highlights the total revenue generated by customers during their relationship with the store. This shows customer loyalty and repeat buying behavior. CLV increases by focusing on loyalty programs and personalized recommendation strategies.

Traffic Metrics

Traffic Sources: The metrics give information about where the active traffic coming from. It also highlights the traffic channels like organic search, social media, or paid ads. These metrics help Shopify store owners in allocating marketing budgets on different channels. Traffic metrics help to optimize channels or campaigns to drive more target traffic.

Bounce Rate: Bounce rate shows the visitors who leave the site after scrolling one page. To reduce bounce rate make the site content engaging and match visitor expectations. Fast page loading speed also decreases bounce rates.

Returning Customer Rates: Shopify Analytics provides the returning customer rate metrics. It measures loyal and satisfied customers who return to make more purchases. The returning customer rate increases by offering loyalty programs and discounts.

Customer Behavior Metrics

Cart Abandonment Rate: This metric shows customers who add products to the cart but do not buy them. The improvement in the checkout process can reduce the cart abandonment rate.

Session Duration: The metric shows the average amount of time spent by visitors on the site. It shows the level of customer interest and purchases.

Financial Metrics

Return on Investment (ROI): ROI metrics highlight the revenue generated by campaigns. The metric helps to calculate the profit of ad campaigns.

Revenue: It indicates the total income from sales. It helps to identify the seasonal trends by tracking the revenue growth chart.

How Shopify Store Analytics Optimize Product Pages, Marketing Strategies, And Customer Experience

Shopify store analytics provide actionable insights to e-commerce businesses. This data helps stores to optimize product pages, marketing strategies, and customer experiences.

Optimizing Product Pages

Shopify store analytics indicates the top-selling products, product views, and conversions. It helps to make decisions for featuring top products in promotions or recommendations. Bounce rate and session duration metrics enable store owners to optimize product content. Shopify analytics shows the add-to-cart products. A complex checkout process may cause the cart abandonment rate. Making a checkout page simple and easy can reduce cart abandonment. Optimizing product pages increases customer engagement and conversion.

Enhance Marketing Strategies

Shopify analytics evaluate traffic by different sources such as paid, or organic search. This allows store owners to decide the budget and effort for high-performing sources. Shopify provides marketing reports of various campaign results on sales, traffic, and conversion. These results help in enhancing marketing strategies on campaigns for better ROI.

Improve Customer Experience

Shopify offers various analytical reports that help to improve customer experience. These reports provide insights into the loading speed of the website's different pages. Page optimization enhances speed and improves customer experience.

Different metrics like navigation, session duration, and bounce rate show customer behavior. Improving these metrics converts visitors into buyers and increases customer loyalty. Analyzing customer behavior helps store owners to offer discounts and personalized product recommendations. Shopify analytics not only improve customer experience but also increase business growth.

How A Shopify Development Agency Can Help in Shopify Store Analytics

Shopify development services provide complete guidance to maximize store analytics potential. These technical experts have deep knowledge of analytical tools. Shopify development services use advanced analytical strategies to provide data accuracy.

Advance Analytical Setup and Integration

The Shopify service provider sets the proper configuration of built-in Shopify analytics. They avoid errors in setup and ensure to tracking of accurate key metrics like sales, traffic, etc.

Shopify development agencies integrate Google Analytics for advanced tracking. They enable enhanced e-commerce tracking features like product view, checkouts, and cart activity. This integration provides in-depth insight into customer behavior.

Data Analysis and Interpretation

The Shopify service agencies analyze the abandoned cart, bounce rate, and session duration. These metrics identify the areas of store improvement to enhance user conversion.

The developers continuously track the store performance, sales, and customer behavior. It helps to predict user demand and plan inventory.

Custom Dashboard Development

Shopify development services can create custom dashboards according to store needs. It allows businesses to focus on important metrics like top-selling products, or ROI.

Optimizing Product Pages

Shopify service providers use insights to optimize product pages for better user engagement. They improve the product descriptions, images, and cart abandonment issues. The page optimization increases the load speed of the site and conversion rate.

Enhanced Customer Experience

Shopify service agencies use session duration metrics to improve navigation and site structure. It improves the user experience and reduces the bounce rate. They make the checkout process simpler to increase conversion and sales.

Integrate Third-Party Tools

Shopify development agencies integrate third-party tools for creating advanced reports and insights. Third-party apps like Hotjar, SEMRush, and Klaviyo expand analytic capabilities.

Performance Monitoring and Reporting

Shopify development service provides store performance reports and recommendations for improvement. These reports help businesses make data-driven decisions.

Professional Shopify service providers have expertise in complex analytics. They provide clear and accurate analytics to store owners. Skilled developers use data to create a cycle of continuous improvement. eCommerceDev.Biz offers services to help businesses with store built-in and custom analytics. Investing in professionals helps you access the full potential of Shopify analytics.