In the past, in order to perform targeted surveys, it was necessary to hire specialist interviewers or those that did non-participant observation to study consumer behavior, which was thoroughly laughed at in the Swedish movie “Kitchen Stories”, for example. Currently, you can also cooperate with various types of research institutes that support the business world, but instead of spending a large portion of funds on it, it is better to use generally available knowledge and specialized tools that are available for free or for a small fee. With a dose of self-denial, anyone can become an expert in determining the target group.

Target audience – it all depends on the size of the business

When you run a small business, you often know your customers and their needs very well. In this case, questions like – “how to determine the target?” or “how to reach the target group?” they don’t make much sense. However, the matter becomes more complicated when the company is of a considerable size and most of its potential clients are completely anonymous. And how to convince people you don’t know?

This will only work if you properly target and create models of customers (so-called personas) who may be interested in your product or service. A teenager with crazy internet marketing has completely different needs and a middle-aged woman who prefers calmer advertising content. A solid, personalized message can hit the recipient’s sensitive points, evoke emotions and encourage him to engage, which is a necessary part of the relationship between the company and the client, which is what content marketing is based on.

Persona

No, we won’t talk about another well-known Swedish film here, but about the basic issue related to defining the audience. Persona is a model of our ideal recipient, its characteristics, which include such matters as gender, age, level of education, place of residence, preferences, worldview, marital status, life practice, current needs or level of life satisfaction. The company cannot afford to create content (such as SEO-compliant articles, video content marketing) that completely falls short of the expectations of the recipients who would be interested in the products or services you propose.

You should think about your personas as close friends who you want to meet, offering them to fulfill the most secret consumer dreams and make their lives a bit happier. Everyone lives in their own fairly closed world of beliefs, thoughts, visualizations, which is often referred to as being in their bubble, in their tunnel, so young people will not be interested in maternity-related content, and their parents will find the rebellious advertising campaign just plain.

That is why it is so important to always be a few steps ahead of your audience, trying to anticipate potential trends. For this purpose, it is worth continuing education, reading the industry press and portals, following the content placed under the hashtags important from your point of view, reading comments on social networks and opinions, and of course using tools to define the target audience.

Target audience – two basic tools

Thanks to individual, specialized analytical tools, you can learn about the characteristics of your target group in great detail. The most popular tools to help target audiences are:

Facebook Audience Insights
Virtually every modern company uses social networks, because this is where they can meet and establish close contact with their customers, presenting the latest promotional materials. Facebook gives you great opportunities to look behind the curtain and check the data on people who have received your company posts and how the recipients reacted to this content (whether it was hidden, liked or shared).

In addition to basic information about the target group, such as gender, age, place of residence, thanks to this system you can also check the relationship status of your fans or websites that are close to them. This helps you plan your strategies and collaborate with famous people or companies with whom you share your fans.

However, when publishing video content marketing on Facebook, it is worth paying attention to whether the material is viewed in its entirety or whether it is abandoned by viewers at some point. Such information helps in better targeting of content and allows you to create content that will please, amuse or evoke emotions in your recipients.

Google Analytics
Thanks to this platform, you can check what type of people the people visiting your website are. What are the characteristics of customers who quickly run away from it, and what are those who stay a little longer or make a purchase? Google Analytics allows you to examine, among others the age, gender, interests and industries they are close to, as well as how they navigate around your site. It is worth setting your promotional activities for the type of people whose visits to your website usually end with a purchase or the desired action. At the beginning of your business path, it is worth playing with targeting your target group by making a series of marketing tests. Sometimes you can opt for advertising texts written in a looser, more direct style, and other times you can choose more serious content (although even funeral services can be advertised cheerfully). The recipients of your marketing strategies will show you the right way by their positive or negative reactions or, for example, lack of them. Reality can surprise you sometimes and you may find that your target audience is completely different than you might have expected.

CTR what does that mean?

The abbreviation CTR means the so-called click through rate or click through rate. How to understand it? It is about the ratio of the number of clicks to the number of views of a given content (e.g. advertising, search result, e-mail). If 1,000 people see your ad and 250 clicks on the link in your ad, your click-through rate will be 25%.

CTR is one of the main measures of audience engagement. It can refer to organic search results as well as paid advertising, email marketing, push notifications and many other activities. It is often referred to in the context of Google Ads ads as it allows you to check your effectiveness in driving traffic to the website. In short, the click-through rate shows how many people the message contained in a given ad (or notification, e-mail, etc.) reached enough to make them want to learn more by clicking on the link. Therefore, it allows you to check whether a given material performs its function properly. Constant CTR monitoring also allows you to track whether campaigns are going in the right or wrong direction.

CTR and other statistics in a mailing campaign

Of course, however, the CTR alone does not provide enough information about the effectiveness of the activities carried out. It is worth comparing it with other indicators to get a more complete picture of the situation. What correlations are worth paying attention to?

CTR and OR
A high Open Rate (OR, message open rate) means that the campaign has piqued interest, was timed, and made it through spam filters. However, if your CTR is also low, the content of the message may not have been enticing enough. Sometimes it can also indicate technical problems.

CTR and ROI
ROI is an abbreviation that stands for Return On Investment. This is actually the most important indicator of whether you are making money with your activities. If sales are low despite high click-through rates, it means, for example, problems with the offer itself or its presentation on the website.

CTR and unsubscribes
The combination of a high CTR with the growing number of unsubscribes is an alarming factor. This may mean that the content of the mailing does not reach the target group at all or is of little interest.

CTR in Google organic search results

Google uses CTR to evaluate the quality performance of Google Ads campaigns. It also uses it to evaluate organic search results. There are also reasons to believe that the index affects the position of the page in the search engine. (of course as one of many other factors). Google’s algorithms are constantly learning from Internet users’ behavior, so they likely also use click-through information to identify what is most popular and why. Therefore, high click-through rates mean not only more traffic on the website, but also better positioning for specific phrases, which will allow you to gain even more recipients (of course, this last statement is a presumption, not a fact). You can check information about your website’s CTR in Google Search Console.

CTR in the ad and the conversion rate

High ad click-through rates (e.g. Google Ads) should be a joy. The goal of a campaign, however, is usually not just to increase traffic to the site, but sales. Therefore, a high CTR should lead to an increase in the conversion rate. What if it doesn’t? What does it mean? There may be several reasons for this. The most common are:
– inappropriate matching of the ad content to the content of the website,
– bad matching of the ad to keywords,
– unattractive offer,
– UX / UI nature problems (e.g. unintuitive conversion path),
– technical problems on the site.

So if seemingly good ad performance doesn’t translate into profits, take a close look at what you’re doing.

Good CTR, or what?

How high should CTR be? There is no definite answer to this question. Optimum results will vary, including depending on the marketing channel. In the case of e-mail marketing, a few percent can be considered a satisfactory result – especially if it translates into conversion.

In the case of organic search results, high click-through rates improve the position of the website and, at the same time, increase traffic. The average CTR for the first link in Google search results is 30-50%. The second position can only count on 10 – 15%, and the third one on 5 – 9%.

When analyzing the CTR ratio, it is worth focusing not so much on its height, but on trends related to its increases or decreases. They provide information on the correctness of the election campaigns undertaken.

How to increase CTR?

When asked “how to increase the CTR?” also can be answered in many ways. The key is to arouse the interest of recipients. The message must therefore be tailored to the target group – personalized messages allow you to achieve much better results. You can segment your audience base by targeting separate messages to different groups of potential customers.

Regardless of the marketing channel, the factor that influences click-through rates is definitely the use of CTA (Call To Action). Even using such simple phrases as “Check!” or “Learn More!”, you are able to get better results. Undoubtedly, CTAs that directly speak about the benefits, such as “Download for free”, are also beneficial. It is worth analyzing the CTR level on an ongoing basis to see which treatments work best. The key to high click-through rates is constant optimization and improvement of conducted activities.

Also, remember not to overwhelm your audience with your message. This is a principle that mainly applies to email campaigns and push notifications. Too many messages lowers CTR and may increase unsubscribe rates.

Why is ecommerce analytics so important?

Collecting and analyzing data allows for better use of available resources and the selection of strategies that will positively affect the company’s development. In business, instinct is what counts, but making decisions based on your gut feelings may not end as happily as we would like. It is similar with the evaluation of our work – relying on your own assumptions or sympathies does not give the full picture of the situation. Collecting complete data allows you to indicate specific areas and activities that need correction. An analysis based on these data allows for setting a clear path and effective implementation of plans in further periods.

Analytics in e-commerce has many advantages:

A. It allows you to make informed decisions based on real information – as mentioned above, concrete data allows action to be taken based on real needs, not subjective feelings.

The collected records make it possible to identify groups of recipients and adjust the method of communication to their needs and expectations. The analysis also allows you to adjust ads and offers to current trends that have a significant impact on how and what we buy.

B. It enables you to increase your income – proper communication with the customer is not only an effective way to convince him to buy in our store, but also to return to our virtual thresholds. Analyzing data and drawing correct conclusions from it also allows you to expand your audience. Greater reach translates directly into greater profits.

C. Zooms to Better Operational Efficiency – Data allows you to make better business decisions, such as allocating your budget to different advertising channels. Choosing the channels that are the most effective and investing more money in them is a chance for more profit.

One of the basic features of the e-commerce world is its constant changeability. The flexibility of the solutions allows you to quickly adapt to trends that are visible, among others, thanks to the tracking of user behavior on websites and a quick response to external factors. The first part of 2020 showed it perfectly well – the global lockdown made it necessary to increase spending on Internet activities of many enterprises, and in some cases – even to start operating online. Many of the companies have found out that running an e-commerce business is significantly different from what their brick-and-mortar stores are used to, where sales are carried out on slightly different principles.

What data to collect?

Sales in online stores depend on many factors. The most important ones certainly coincide with what we know from stationary sales, e.g. the price and availability of a given product. In the case of online sales, however, there are also more technical aspects of the website – such as speed, navigation within the site and, for example, the availability of popular technology solutions.

The same applies to marketing activities – in a stationary store at the checkout, additional products are recommended, here in the basket you can encourage to supplement purchases with what other customers have bought. When it comes to advertising – stationary solutions are based on television and banners, which will not always attract the eye of a potential customer. On the Internet, advertising can be more effective – for example, remarketing allows you to track an undecided customer and remind him of the store and products that he has previously viewed.

Information about the client and the possibility of tracking him appears along with the implementation of solutions enabling the analysis of his behavior. Most of them are based on data provided by cookies – cookies that identify users and their computers, save preferences and play a huge role in supplementing Internet activity statistics.

Data is collected by appropriate software – here Google Analytics definitely dominates, without which analytics in e-commerce would not be the same. The information base can be extensive and the records very detailed, such as the age and gender of users, location and language. Information about their interests can also be obtained from the reports. The other information collected relates to more technical elements – e.g. the operating system and browsers used by your potential customers.

Collecting the results, tracking and comparing them with each other allows you to get quite detailed information about who visits our pages and:
– from which pages users come to the site,
– how long do they spend reading posts and which of them are the most popular,
– what products are most often bought together,
– where the customer most often resigns from buying in the store,
– how many sessions does it need to finalize the transaction.

How to use the data?

Data collection and analysis are not enough. Outlining the points where our business loses or does not use its potential – this is a real value that should be translated into specific actions. Ecommerce analytics allows it.

The information collected by Google Analytics and other tools should be taken into account in many processes related to the online store, including while designing the site. Analytics is also necessary during UX processes, especially in the phase of optimization of ready-made solutions. The data is also useful for planning marketing activities and solving problems with the website.

Website tailored to the user

Designing and checking already implemented changes allows you to increase the availability of the website and make it easier for users to navigate through them. Simple paths and easy access to information also work well for online stores. A large number of unclear categories or a chaotically designed form for customizing goods can frustrate customers and, as a result, make them give up the purchase. Difficulties with finalizing the purchase are also sometimes the reason for making a decision about choosing a competitor – even if the price of their products is higher. Controlling all steps leading to the completion of the purchasing process allows you to catch the moment when the customer gives up and design it in a way that will allow you to change the user experience for the better.

From the UX and website design point of view, the information on what devices the website users use will also be valuable. In the case of an advantage of traffic from mobile, it is necessary to ensure the correct design of the website and its appropriate size – not only adjusted to the smaller screen diagonal, but also to a weaker network connection. The time when your customers visit the site may also be important – some of the night audience will certainly be delighted with the possibility of using the dark mode option.

Marketing – with analysis

Google Analytics and related solutions are at the heart of every Internet-oriented marketer. This is where i.a. information about users is obtained – who they are, where they come from, what interests them. The tools allow you to select the content that engages them the most and those that do not arouse much interest. In the case of e.g. newsletters, tracking codes allow you to control how many e-mails have actually been opened and whether their recipients have made a decision to switch from them to the pages promoted therein.

Knowing your users, which will allow you to divide them into more or less engaged groups, is useful when setting up Google Ads campaigns. Increasing the financial outlays for a given group may bring better results than advertising aimed at everyone.

Analytics allows you to create events and goals, which makes it much easier to measure the effectiveness of your marketing activities. Additionally, in the case of Google Analytics, dedicated e-commerce reports are also available, which allow for a broader view of sales in the store.

Creating goals is one of the elements of building an effective marketing strategy, especially if it is created in a SMART way:
– Specific,
– Measurable,
– Attractive,
– Realistic,
– Timely.

This methodology allows you to create real goals, the level of fulfillment of which can be controlled using Google Analytics. Goals can be set according to what works best for your store.

When analyzing problems with conversions (that is, meeting goals), it is worth asking yourself a few questions … basically one, only a few times. “5 whys” (5 why) is a method that allows you to effectively drill down into a problem and find its cause with a single question. Answering subsequent questions, e.g. the most popular product stopped selling. Why? There was an error on the page and it cannot be added to the cart. Why? Recent update changes have been badly implemented. Why? The pressure to introduce changes was too great and the acceleration of activities was done at the expense of testing. Why? The outlays for the IT department are too small, and their lack affects the quality of the entire store.

Analytics in e-commerce – react to changes!

Keeping your finger on the pulse – for example in the form of tracking within your website, definitely facilitates quick response to potential problems. Example? A sudden lack of conversion or the abandonment of the cart may suggest problems with a given subpage – e.g. its significant slowdown or technical error, preventing the transaction from being completed. Quickly locating the problem saves time and money.

Analytics in e-commerce – where to get knowledge?

The basic analysis of your own online store should start with the implementation of the Google Analytics tracking code. You can learn about how this tool works and how to set your own goals from official Google sources:

Analytics Academy – there are 4 courses on the platform:
– Google Analytics for beginners,
– Google Analytics for advanced users,
– Google Analytics 360 package – first steps,
– The basics of Google Tag Manager

Basics of analytics in e-commerce

Investing time in your development and skill development is never a waste. In the case of business issues, a different – more analytical – view of the world of shopping will allow you to pick out the subtleties that will allow your store to grow and achieve real profits! Failure to implement analytical tools and actively use them is simply a waste of money. Don’t take chances – check out our guides today!