How to grow your e-commerce with transactional data

Total retail sales in e-commerce increased from 15% to 22% during the pandemic. By 2026, the e-commerce market is predicted to grow from $3.3 trillion to $5.4 trillion. As a result, retail stores are having to adapt to changing consumer demand by scaling up and accelerating their digitization strategies.

As consumer behavior has shifted increasingly online, retailers are starting to see the value and importance of consumer and market-level data. Yet, many companies struggle with sourcing relevant and actionable data, often wasting considerable time and resources to find clear insights that help them grow their business and benefit consumers.  

In this article, we will explore the important role that transactional data plays in providing wide-reaching strategic and growth benefits to e-commerce businesses.

Here’s how transactional data can help your business:

1. Optimizing your ad spend

It is becoming more expensive for e-commerce businesses to advertise. Ad costs continue to grow and competition for keywords becomes increasingly heated. This trend is seen when looking at the transactional industry benchmarks of the Computer, Electronics and Technology industry in Germany, between Jan 1 and May 31.

Whilst it is true that transactions have remained stable, that is not the full picture. Businesses are facing increased ad costs and consumers are spending less money per order (decrease in AOV). Meaning that retailers are seeing less return on ad spend investment. From the infographic below, we can ascertain that transactions decreased, this happens because people are buying less and choosing cheaper products.

Marketers can use this data to adapt their marketing strategy. There are multiple ways to approach this, one of them is looking at your channel mix – which bring us to point two.

Transactions and AOV in the Computers, Electronics and Technology industry In Germany from Jan 1 to May 31, 2022

2. Building an optimal channel mix

Transactional data can help to counter a slowdown in sales by monitoring channel performance. By having a clear overview of AOV, revenue and transactions, retailers can direct their marketing efforts and spend time on better performing channels with more return. We looked at each channel in the Computer, Electronics and Technology industry in Germany. In our data, we saw that non-paid channels, such as organic search, social media and email are having a reduced impact on Transactions. However, it is not all bad news. We can see that direct  and paid channels are seeing an increase in  Transactional behavior. By looking at channel performance, marketers can identify what is going well and what is not and adapt accordingly. In the example of the Computer, Electronics and Technology industry in Germany, consumers are more likely to buy if they come to the site directly or via paid search. This might mean that retailers are pushing the wrong messaging or products through channels, such as email or social media.

Transactions distribution per channel in the Computers, Electronics and Technology industry In Germany from Jan 1 to May 31, 2022 

2. Identifying your most valuable demographics and target audience

The importance of knowing who is buying your products cannot be overstated. It has far-reaching implications of everything from sales, to how you spend your marketing budget and ultimately the tonality and ethos of a brand. Brands selling their products through third parties, only have access to limited sales data. They might know how many units of a product they are selling, but it is very rare that they would know more-detailed demographic data, encompassing a wide range of retailers and telling them who is buying these products. This may be due to retailers not having the full picture of the market themselves. 

A transactional intelligence data platform will clarify who is the highest-value audience segment across an industry and where to focus marketing spend on. Below we can see how 25-34 year old males are the most promising age group for Consumers, Electronics and Technology in Germany. 

Age and gender demographics in the Computers, Electronics and Technology industry In Germany from Jan 1 to May 31, 2022 

As an example, we helped Procter & Gamble analyze the performance of electric toothbrushes within the category. The data showed that 72% of buyers were women and 69% of online sales came from Google Shopping. These insights helped optimize P&G’s marketing strategy, enabling them to create assets that spoke to the needs of the target audience. 


3. Understanding trends and demand
Having access to historical transactional data will show you when your most important shopping seasons take place. This enables you to plan logistics and prepare for demand and inventory. Historical data of an entire industry is important to decide when to launch products (during surges in demand), and when to increase marketing efforts and introduce discounts (during slowdowns in consumer behavior). For example in the graph below, the periods around Black Friday and the run up to Christmas show peaks in demand.

Transactions trend over time in the Computers, Electronics and Technology industry In Germany from Jan 1 2019 to May 31, 2021

4. Knowing how you compare to your industry

Most retailers will learn only from their own historic data, but is that enough? Having a broader perspective can help identify areas of improvement.  Knowing how your industry is doing in regards to AOV, Revenue per Session and Transactions can help you identify the effectiveness of your marketing, your store performance and how you compare to your industry. A good benchmarking platform will help you see quick changes in the industry across channels so that you can  make forecasts and make better decisions such as the costs of future acquisition campaigns. You can also understand how your website is performing in key KPIs and take action in areas where you underperform.

AOV, Revenue per Session, Avg. Conversion Rate in the Computers, Electronics and Technology industry In Germany from Jan 1 to May 31, 2022 

5. Expanding your business to new markets
Transactional data can help companies decide where to expand their business. In addition to monitoring trends and demand in consumer behavior within an industry, transactional data is used to see if there is a growing appetite in a new market. By analyzing revenue, AOV, demand and trends within target markets, transactions can help you identify the most promising markets and the demographics most receptive to your products. It is one of the most important metrics to come up with a market entry strategy. Below, we have done a comparison of how the Computers, Electronics and Technology category performed in the last year in 3 countries: Germany, France and Spain. Is there a price point within the Average Order Value range? For a computer accessories company looking to expand their market share, the data below can be used to see if there is a fit. 

Top KPIs of the Computers, Electronics and Technology industry in Germany, France and Spain

To sum up

 If you’re looking to grow your e-commerce stores, it is important to find data that can show clear and actionable insights that will benefit your business. peekd turns transactional data provided by retailers and other third-party sources into insights that present the most accurate view of e-commerce in the market.

And the big difference from other companies? It is the only provider out there that prioritizes transactional data and has an easy-to-use platform. Transactions are the final step of the sales funnel and the most important one, as they are effectively what generates revenue. 

If you would like to try a demo, click here – Our sales team will get in contact with you.

ABOUT THE AUTHOR
Carolina is an international Copywriter with 5 years of experience in the Marketing & Advertisement industry. Currently studying for a Master degree in Psychology. Native in Portuguese and English. Always learning German.
ABOUT THE AUTHOR
Carolina is an international Copywriter with 5 years of experience in the Marketing & Advertisement industry. Currently studying for a Master degree in Psychology. Native in Portuguese and English. Always learning German.
Our articles delivered once a month to your inbox
Thank you for subscribing! ✅
Subscription implies consent to our Privacy Policy

Related articles

Start growing with peekd today