Answering the Question: What is Ecommerce Optimization?

In this episode, host Scott Reid explores the definition of the word “optimization” as it relates to Ecommerce marketing. 

He focuses on three main goals: 1. Enhancing traffic quality 2. Reducing traffic costs 3.Refining the online customer journey.

He also discusses the complexities of Ecommerce data analysis, highlighting the challenges with various reporting platforms and the new GA4 interface. He introduces the Ecommerce Optimization HUB, a tool to simplify data analysis and help marketers focus on impactful optimization areas – saving a great deal of time, energy, and money in the process.

EPISODE SNAPSHOT

  • [0:00] Ecommerce optimization strategies and data analysis.
  • [5:05] Marketing data analysis complexity and its impact on ecommerce growth.
  • [7:51] Using GA4 data to improve marketing decisions.
  • [11:31] Ecommerce Optimization HUB

EPISODE DESCRIPTION

In this episode of the Ecommerce Optimizers Podcast, host Scott Reid demystifies the concept of optimization in the ecommerce world. With a clear, engaging explanation, Scott breaks down optimization into three pivotal objectives: enhancing traffic quality, reducing traffic costs, and refining the online customer journey. He emphasizes that optimization is not a one-off task but a dynamic, ongoing process aimed at improving overall business performance. Through a deep dive into marketing data, Scott demonstrates how Ecommerce brands can identify areas with the highest potential for growth. The episode goes beyond theory, offering actionable insights on using data to make informed decisions, thereby converting more visitors into customers at a lower cost. Reid introduces the Ecommerce Optimization Hub, a tool designed to simplify data analysis, as a practical solution for ecommerce professionals seeking to unlock substantial growth opportunities for their businesses.

SPONSOR

This episode is sponsored by our very own Ecommerce Optimization HUB – your essential tool for enhancing traffic quality, reducing traffic costs, and refining the online customer journey. With The HUB, complex marketing data becomes easy to understand, helping you to clearly identify what’s working and what’s not throughout your traffic and website. 

The best part is that subscribers of The HUB also get access to on-demand support, feedback & coaching from Chief Optimizer (and show host) Scott Reid. You can take a test drive with our full access, 30-day free trial – no credit card is required. Get all the details by clicking here

EPISODE TRANSCRIPT

00:00
All right. Hi, everybody. Welcome to the E commerce optimizers podcast. I’m your host, Scott Reid. So in today’s episode, I thought it would be a great idea to define optimization. A lot of people throw that word around myself included. And the reality is, is that it simply means different things to different people. The Cambridge dictionary, I just looked it up online optimization, the act of making something as good as possible.

00:28
An E commerce brand has a lot of moving parts, there are many areas of the business that you can optimize to make it as good as possible. As a marketer specializing in E commerce, I define optimization as a dynamic and ongoing process centered around three fundamental objectives to enhance overall business performance. Number one, enhanced traffic quality. This involves focusing on attracting more relevant and engaged visitors. Number two, lower traffic costs. So here, the goal is to reduce traffic expense without compromising on quality. And that’s key without compromising on quality. And three, refine the online customer journey, continuously improving every aspect of the website visitors experience from beginning to end. So this comprehensive approach to optimization my take on it does more than just tweak individual components, it synergizes them to achieve a crucial goal. And that goal is to convert more visitors to customers at a lower cost. So that’s key. And that’s something that runs throughout everything that I do is that it’s all about converting more visitors to customers at a lower cost. Because this strategy in this focus on these three areas,

01:52
enhance traffic quality, lower traffic costs and refine the customer journey. It translates into the ultimate benefit, which has a direct immediate and positive impact on revenue and profit. My approach is all about transforming operational efficiency and a couple of key areas into measurable financial success for your E commerce brand. And here’s the great news is that every single e commerce brand worldwide has room to improve in those three areas. And these are highly actionable growth levers I can’t underscore or put that in bold print enough, improving them often represents the most significant opportunity for revenue and profit growth for an E commerce brand. Just due to the structure of a typical e commerce brand business, which has a very high reliance on traffic quality, traffic expenses, a big line item on the income statement, and the online customer journey. Clearly, you need that to operate as smoothly as possible. And there are different degrees, obviously, to which each one of those are affected. But the point is, is that if you are able to improve those three areas of your business, you can really directly and very, very quickly positively impact your top line and your bottom line.

03:13
But here’s the thing is that identifying the most impactful areas to optimize within those three areas. That’s the first crucial step. Okay. And this is precisely where I see a lot of people get hung up. And the key lies in understanding where to concentrate your efforts for maximum impact. Clearly, what we don’t want to do is we don’t want to focus in an area, an optimization area for something that’s not going to give us a big ROI on our time, energy and money. But how do you pinpoint the exact segments and the exact components in the exact areas of your traffic and your customer journey that offer the greatest potential for growth and improvement? That’s the big question, you want to be able to have the confidence that what you are working on is going to pay off or at least it has a high likelihood of paying off and that the payoff will be big. Now the answer is straightforward on that. And that’s really easy to you just dive into your marketing data. Because your marketing data is a goldmine of insights.

04:16
And it reveals this data reveals the effectiveness of various aspects of your traffic and website. Think about it, like your data is the compass that guides you to what’s working and what’s not. That’s the classic marketing question. And that’s the classic optimization question, no matter what type of optimization you’re doing, but we all know that going into your marketing data. In an effort to identify where you should focus your efforts to improve your traffic, your website is much easier said than done, isn’t it?

04:48
So I have a question for you.

04:51
Over the last, say six months or so, have you sat down and really tried to clearly understand what’s working and what’s not across Europe?

05:00
Traffic and your website? And probably most importantly, how those are all working together. How do you feel when you’re doing that? Do you have confidence and conviction in what you’re seeing and your takeaways?

05:13
Or is there a sense of unease or uncertainty, perhaps frustration, or overwhelm? What I hear from marketers is that there’s a tremendous amount of frustration, confusion, and overwhelm when it comes to analyzing their marketing data in an effort to clearly understand what’s working and what’s not. And there’s one primary reason why a very high percentage of marketers feel like that, it’s because it’s really hard to figure this stuff out. And I’m gonna say that, again, because it’s so important. It is really, really hard to figure this stuff out. And the reason why it’s so hard is because you’re dealing with multiple reporting platforms. Each traffic source has its own reporting interface. It has its own attribution model, if you’re using GA for to measure your website performance and or the performance of your traffic, that’s really complex as well. It’s a brand new platform

06:16
that just came out on July 1. So a lot of people feel as though that’s like learning a new language. The bottom line is that data analysis in today’s world where we have massive amounts of it is complex. And all this complexity translates into lost opportunity for ecommerce brands, in terms of revenue and profit, it’s just much harder for them to grow. I want to touch on Google Analytics for GA for as it’s more commonly known, just for a sec, because it may appear as the panacea capable of answering all of your questions regarding traffic and website performance. And I believe that statement that thought to be very, very true. I’m a huge fan of GTA four, I think it’s a wonderful platform, I think it’s the best way to analyze your traffic and your website, through one lens, full stop. But here’s the thing, again, we’re back to the complexity, we’re back to the confusion, GA four is awesome. But you got to know how to use it. And that can take a long time to really feel confident and comfortable with with the platform it takes. It’s taken professionals, it took me a long time to really get comfortable with it. And all of this complexity leads to a critical problem. It’s inefficiency, and lack of focus on where you should be spending your valuable scarce resources, your time, your energy and money in terms of optimizing your traffic and your website. So many marketers, many ecommerce marketers, what they do is, is that they find themselves stuck in a cycle of guesswork as a result of this data confusion. And whenever you’re guessing at something, you simply don’t have confidence and lack of confidence leads to indecision, it leads to slow decisions in terms of where should you be focusing your efforts, optimizing your traffic and your website. Now, the opposite of this is being in a situation where you can go right into your marketing data, because you know that that’s where you can get all your questions answered, that your marketing data does, in fact, provide you if you know how to interpret it. And to read the story that he’s telling you, it does have the ability to tell you exactly where you should focus your efforts in terms of optimizing and improving.

08:32
And when you know that, and you have a high level of confidence, it is at that point that you can start to make, start to proactively make better decisions that drive your brand forward, that improve the effectiveness of your traffic, reduce the expense of your traffic, and improve your customer journey. Because when those three things come together, that’s when you are able to significantly and predictably improve your revenue and profit. And that’s the that’s the ultimate benefit of optimization. At this stage, some of what I just said, very well may resonate with you. Okay, so if you believe that this is something that you want to do more of, in other words, understand your marketing data better, more clearly more confidently, so that you can optimize and improve upon those areas of your business of your marketing strategy that can really transform your revenue and profit. If that sounds like where you’re at right now, you’ve got a couple of different choices.

09:37
So the first choice is to spend a lot of time and energy in an effort to learn how to use GA for in a variety of different ways that require you to clearly and confidently understand how your traffic and website are performing again using the GA four platform.

09:56
Now, there’s one big drawback with this and that’s it’s time it’s

10:00
is the time requirement that you’re going to have to invest in learning GA for how to interpret it and how it all ties together in terms of clearly understanding what’s working and what’s not across your traffic and your website, and how those are working together. So that’s is definitely one option. The other option is to take the easy route, and use our solution which we refer to as the E commerce optimization hub, or the hub for short. And this is a reporting interface. Essentially, that’s designed to simplify the complexity of GA four, we do it through Looker studio. So rather than using GA fours, quite cumbersome and ineffective reporting interface, we take all the GA for data, and we pipe it through Looker studio in a very easy to understand easy to take action on manner that is also very intuitive in nature. And it gives you everything that you need to clearly understand how your traffic and website are working. Without this extensive time investment that’s typically required to master the GA four platform. Even if you are an expert in GA for the hub will make your life much much easier. There are many data analysis and conversion optimization professionals that use our platform to identify insights within GA for data faster and easier than it would take them to use in platform. All right. So the bottom line is that the hub provides you and equips you with the insights to focus your optimization efforts where they will make the most significant impact, which allows you to unlock the most substantial growth opportunities for your business.

11:47
You could learn more about the hub and all it has to offer by going to our website. And you can hit this page directly by going to ecommerce optimizers.com/hub Hu B, I’ll also provide a link in the show notes, one of the first things that you’re going to see, when you navigate to that page is that there’s a free 30 day trial, there’s no credit card required, there’s no obligation. After that trial,

12:14
you have the option to continue, if you like on a monthly basis or an annual basis, there’s a couple different options, I think you’ll see that the pricing is incredibly inexpensive. But in addition to your ability to quickly and easily identify optimization opportunities, insights, these things that drive your business forward and deliver revenue and profit. You also get access to me in a couple of different ways. The first thing is, during that 30 day trial period, you and I can sit down for a one on 160 minute optimization session. And throughout that session, what we’ll do is we’ll use the hub. And we’ll also reference your website and talk about your overall marketing strategy to identify profit improving optimization opportunities that you can take to the bank. So that’s one thing that you get, that’s a special bonus, in addition to the 60 Minute optimization session, every week, we get together and in a webinar format. And it’s really an Ask me anything. So you can go through Ask me any optimization question around traffic, your website using the hub not using the hub, whatever it is, I’m there, you can ask any questions you like. So what I really am attempting to do with this is to deliver as much value as I possibly can to you in advance. By providing you with full complete access to the hub for 30 days, I would be really, really, really surprised if you didn’t identify at least three very solid, very high potential impactful optimization opportunities across your traffic, your website or both. So if you put your arms around, optimizing your marketing for 30 days, at no cost, all you got to do is show up, I can guarantee you pretty much not 100% Because there’s never 100% guarantee. But I can pretty much guarantee you that you will get a massive amount of value during that 30 days. And then from there, you can decide on your own. If the hub is good for you moving forward. If it’s not, please understand that there are no hard feelings, there are no expectations whatsoever. Again, I’m all about delivering as much value as I can. And if you get the value out of that, then we’ll see what happens from there. But I really appreciate you listen to this episode. The next episode is going to be what I refer to as a 10 minute tune up. Stay tuned for that 10 minutes to get a ton of value in terms of one specific area of your marketing strategy that you can optimize. Thanks again.

15:00
I hope you have a great day