Shopify Analytics: Key Stats and Tools To Help You Understand Your Store
In the dynamic world of e-commerce, the success of your online store largely hangs on your ability to understand and respond to your store’s data. This is where Shopify Analytics comes into play. But what exactly is Shopify Analytics, and why is it pivotal for every Shopify store owner to understand?
What is Shopify Analytics?
Shopify Analytics is a built-in feature provided by the Shopify platform that enables store owners to track, analyze, and interpret various data points related to their online store’s performance. From sales and customer behavior to inventory levels and marketing effectiveness, Shopify Analytics offers a comprehensive view of your store’s operational metrics.
The out-of-the-box Shopify Analytics dashboard does have limitations.
Later in this article, we’ll dive into some of our preferred alternative Shopify data analysis tools, to help you get an even deeper understanding of your stores performance.
Why Shopify Analytics Matters
Data-Driven Insights: Shopify Analytics provides you with real-time data about your store. This includes sales figures, customer traffic, and engagement metrics. These insights are crucial for making informed decisions, whether it’s about inventory management, marketing strategies, or pricing adjustments.
Understanding Customer Behavior: One of the key benefits of Shopify Analytics is its ability to track and analyze customer interactions with your store. This includes understanding which products are popular, how customers navigate your site, and what prompts them to make a purchase. By analyzing this data, you can tailor your offerings and website layout to better suit your customers’ preferences.
Tracking Sales and Growth Trends: Shopify Analytics allows you to monitor your store’s sales performance over time. This can help you identify trends, peak sales periods, and potential areas for growth or improvement. Understanding these trends is crucial for forecasting and planning future business strategies.
Optimizing Marketing Efforts: With Shopify Analytics, you can evaluate the effectiveness of your marketing campaigns. By analyzing traffic sources and conversion rates, you can identify which marketing channels are most effective for your store and adjust your strategies accordingly.
Customizable Reporting: Shopify offers a range of customizable reports, allowing you to focus on the metrics that matter most to your business. Whether you’re interested in detailed sales reports, customer behavior analytics, or acquisition data, Shopify Analytics provides the tools to create tailored reports to meet your specific needs.
Key Shopify Metrics You Need To Know
Chart net revenue over time to help you spot market trends and draw year over year comparisons.
Customer Lifetime Value (LTV)
If your customers typically make multiple purchases, understanding their true lifetime value can help you make smarter marketing decisions.
Sales by Channel
Understand exactly where your sales are coming from – whether that’s organic search traffic to your website or sales from Instagram Shopping.
Average Order Value (AOV)
Understanding AOV helps you calculate on average if you’re generating more or less revenue per customer over time.
Even small conversion rate changes can have major impact on Revenue.
Revenue by Product
Knowing your star product(s) can help you make more informed marketing decisions and focus your campaigns accordingly.
The Shopify Analytics Default Dashboard
Navigating through the sea of data in e-commerce can be overwhelming, but the Shopify Analytics Dashboard is designed to make this journey intuitive and insightful. This dashboard is the command center for all the crucial data your store generates. It’s not just about presenting numbers and graphs; it’s about transforming raw data into actionable insights that can steer your business towards growth and efficiency. In the following section, we’ll dive into the specifics of the Shopify Analytics Dashboard, exploring its key features, layout, and how it can be utilized to not only understand your store’s current performance but also to predict and plan for future success.
The Default Overview
This is the main at-a-glance dashboard in Shopify Analytics, and it offers store owners a quick and easy way to see some of those important metrics, averages and trends.
From here, you can see:
- Total sales over time
- Sales by channel (note that in this case, “channel” means the platform where the sale occurred – i.e. Website, Facebook, the Shop app etc)
- Sessions over time
- Overall Conversion Rate
- Average Order Value trends
- A snapshot of your top products by volume
- Some basic traffic and demographic data
This dashboard is great for giving store owners a birds eye view of how their store is performing.
But it’s limited in its ability to help you extract actionable data that can help you grow your business.
Total sales may be up over the time period you’re analyzing. And on first glace, that’s a great thing, right?
Well… maybe. But not necessarily.
What if your total sales jumped, but your average order value dropped? Now your average profit per customer is down.
Or what if sales skyrocketed because of a promotion you ran last week, so revenue is up but profit is down?
Or what if that blog post you wrote last month went viral and drew in an influx of new traffic, dragging your conversion rate down? You might look at your overall conversion rate on the Shopify analytics dashboard and assume that’s a bad thing. But is it really?? We’d argue, probably not. You’re getting on the radar of more people and increasing your brand awareness. Fair enough, they’re not ready to buy yet, but one day they will be. And in the mean time, you shouldn’t let their lower conversion rate skew the rest of your traffics conversion rates, which may well be trending differently.
There’s a huge wealth of insights and knowledge to be extracted from ecommerce data, but if you don’t know how to properly interpret and analyze the data you’re seeing, you may end up making marketing decisions that do more harm than good.
Extract Insights That Drive Growth
Google Analytics 4 & Shopify
Google Analytics 4: An Alternative to Shopify’s Built-In Analytics
While Shopify’s own analytics tool offers great insights into your store’s performance, there’s another powerful player in the game: Google Analytics 4 (GA4).
Think of GA4 as a friendly neighbor who offers a different perspective on how your online shop is doing. It’s like having an extra set of eyes that helps you see your store’s data in a new light.
In this section, we’ll explore how GA4 can be a valuable alternative or complement to Shopify’s native analytics.
And if you’re new to GA4 or haven’t set it up yet, we’ll also have detailed guides launching soon to help you learn how to set up google analytics 4 with Shopify and start collecting data.
Today, we’ll dive into the unique features of GA4, how it differs from what you’re used to with Shopify, and why it might be the right choice for getting a deeper understanding of your customers and making smarter decisions for your business.
Let’s see what new insights GA4 can bring to your Shopify store!
GA4 Ecommerce Purchase Overview
To view ecommerce purchase data in Google Analytics 4 (GA4), go to Reports – Monetization – Ecommerce purchases.
From here you can see a basic overview of ecommerce performance, as well as some additional and potential insightful product level data that isn’t available in the native Shopify Analytics.
Like this chart, for example:
Here we can see in intersection of items viewed and items added to cart.
You can also hover over each blue bubble to see the name of the product it represents.
This is a great report for quickly identifying top products and hidden opportunities.
See a product with high page views and low add to carts? Time to dig out those Conversion Rate Optimization tips and run some A/B tests!
Layering In Secondary Dimensions For Deeper Insights
Here’s where the power of a more robust data analytics tool like Google Analytics 4 starts to pay dividends.
By layering in secondary dimensions, we can splice our data by product AND source, or product AND country/region, or product AND landing page url (to name just a few of our favorites).
To view this report go to Reports – Monetization – Ecommerce Purchases, scroll down to the table and click the + icon next to the “item name” column header to select the secondary dimension you want to add in.
Visualizing Cart Abandonment
Reports – Monetization – Purchase Journey
Finding out exactly where potential customers are dropping off can help you strategize plans to reduce cart abandonment and/or reengage lost conversions with follow up ecommerce marketing campaigns.
Next Level Shopify Analytics, With Looker Studio
As a leading ecommerce marketing agency, sifting through the noise and extracting insights from data is what we do best.
And Looker Studio is our go-to tool for uncovering those vital growth opportunities.
Why We Love Looker Studio For Ecommerce Data Analysis
1. Customizable Dashboards: One of Looker Studio’s standout features is its highly customizable dashboards. You can tailor them to display exactly the data that matters most to your business. Whether you’re tracking sales trends, customer demographics, or marketing campaign effectiveness, Looker Studio puts you in the driver’s seat.
2. Integration Capabilities: Looker Studio seamlessly integrates with a wide array of data sources, including Shopify, Google Analytics, social media platforms, and more. This means you can consolidate all your data in one place for a comprehensive view of your business’s performance.
3. Advanced Reporting: With Looker Studio, you’re not limited to standard reports. You can delve deep into your data with advanced reporting capabilities. From detailed sales analysis to customer journey mapping, Looker Studio allows you to extract and explore the nuances of your data.
4. Collaboration and Sharing: Looker Studio makes it easy to share insights with your team, partners, or stakeholders. Its collaborative features ensure that everyone involved in your business can stay informed and aligned on key metrics and strategies.
5. Accessibility and Cost-Effectiveness: Despite its advanced capabilities, Looker Studio is user-friendly and accessible, even for those without a background in data analysis. Plus, its basic version is free, making it a cost-effective solution for e-commerce businesses of all sizes.
Need Help With Your Ecommerce Analytics and Marketing?
Diving into the deep end of e-commerce analytics and marketing can be daunting. That’s where Marwick Marketing steps in. We’re a dedicated e-commerce marketing agency, armed with data-driven strategies and a passion for growing online stores. Whether it’s deciphering data puzzles or crafting winning marketing campaigns, we’ve got you covered.
Our global expertise, combined with a personal touch, makes us the ideal partner to take your online store to new heights. Ready for a change? Reach out to Marwick Marketing and watch your e-commerce dreams turn into reality.