10K Collective e-Commerce Podcast

10K Collective e-Commerce Podcast

A Data-driven approach - KPIs that Work for Amazon Sellers!

December 07, 2022

Data-driven decision-making is a process that helps you identify the key performance indicators (KPIs) that best describe your business. It also helps you identify the metrics that best reflect the impact of the changes you're making in your business. It's an analytical approach to decision-making that requires data.

Instead of that, how do we get this to work in the real world? What do you measure? More importantly, how do you make sure that the metrics you choose are actually relevant to your business model? In this blog post, we'll explore some common KPI mistakes that many sellers make. We'll look at how data-driven approaches can help prevent these issues from happening.
Time Stamps
[00:43:43] What is Data - Driven Approach To Managing An E-Commerce Business?
[01:45:70] Data Driven vs Data Informed is Better
[02:51:15] Why Does Data-Driven Decision-Making Matter?
[07:52:73] The S.M.A.L.L. Framework
[12:40:56] KPIs You Need For Your Business
[15:54:78] Are Revenue Targets A Good Plan?
[19:10:33] Industry Benchmarks for Gross Margins
[21:57:07] For the "Leveraged"Business - KPIs
[27:29:95] Have 1 KPI Per Marketing Person
[31:56:01] Data Drive U: Services

This article will cover:

Why data-driven decision-making matters
How we can put in place a data-driven approach?

What are some of the ways that you can use data to make better business decisions? How will this help your ecommerce business grow?eCommerce

What is a Data-Driven Approach to Managing an e-commerce businesss ?
A data-driven approach to managing your e-commerce business is about using facts and figures to make decisions. This is better than just relying on your gut instinct. The process involves collecting data, analyzing it and making decisions based on the analysis.

The Data-Driven Approach has three main steps:

Collecting data in a systematic manner;
Analyzing and interpreting the collected data. We are look fordecision-making meaningful insights for better decision making; and finally,
Using those insights to improve marketing strategies, customer service or other areas of your e-commerce business. Data-Driven

Data-Driven vs Data-Informed
Why Does Data-Driven Decision-Making Matter?
Data-driven decision making is an important part of any business. It allows you to make better, more informed and more accurate decisions—which in turn leads to more effective business processes.

The reason it’s so important is that good data gives you the insights needed to make smart choices. The choices could be about your product or service development, or marketing and sales strategies. Either way, your choices can dramatically impact your bottom line.

The problem is that most companies don’t have the right tools in place to get their data and turn it into actionable insights. And those that do often find themselves drowning in an ocean of information. As a result, they waste time trying to figure out what their customers really want. Worse still, they make decisions based on bad data.
More Data Doesn't Mean Better Decisions!
You don't need MORE data per se. Rather, you need better and more relevant data that can help you make better decisions. More data doesn’t mean better decisions!

Data can be misleading - It’s important to understand how your customers are using your products and services. But understanding the customer journey is only half of the equation when it comes to using Amazon KPIs. You may, for example, place too much weight on negative reviews. You need to have context or perspective on why something happened in the first place (if you're able).

Data can be misinterpreted. How many times have we seen people get fired up over something that turned out to be false? The same thing goes with sales numbers. One set of results from one customer won't tell us enough to generalize safely.
How Do We Install Data-Driven Decision-Making?
You start by understanding what type of data you should collect....