How to enhance your ecommerce strategy through data-driven optimization?

Data fuels your systems, optimizes your processes, and empowers you to make informed decisions that drive growth. However, without reliable, high-quality data, even the most sophisticated systems can falter. As the adage goes: “Garbage in, garbage out.” According to an IBM study, 90% of the world’s data has been generated in the last two years. The explosion in the amount of available data reflects the growing importance of data collection and analysis for e-commerce brands. This impressive figure underscores the necessity of properly managing and leveraging this information to remain competitive.

Our story: transforming O2 Commerce with BI and AI

At O2 Commerce, we encountered this reality firsthand. Recognizing the need for a clearer view of our metrics to enhance business performance and customer experience, we embarked on an ambitious BI (Business Intelligence) / AI (Artificial Intelligence) project. Over the course of a year, we delved deep into our data ecosystem, ensuring its integrity and unlocking valuable insights. The result? A suite of incredible dashboards empowering us to make data-driven decisions, embraced enthusiastically by our teams.

The 8 steps to data mastery and ecommerce success

1. Data Quality

Prioritizing data quality is paramount, whether undertaking a Product Information Management (PIM), Business Intelligence (BI), or Customer Data Platform (CDP) project. Establishing a robust data model and ensuring diligent normalization lays the foundation for uniformity and reliability.

The O2 experience: We encountered deficiencies in both data quality and consistency. Our team members inconsistently recorded their hours, utilizing various methods that lacked uniformity across the organization. For example, when attempting to extract training data, we faced obstacles due to disparate inputs such as “training” or “upskilling”. With the different teams, we put in place some process to ensure the data that was created is coherent with what we needed for reporting.

2. Data Governance

Clear data governance with defined roles and responsibilities is essential. Clarifying data ownership and accountability ensures accuracy and reliability.

The O2 experience: Throughout the duration of our project, we implemented novel processes and delegated additional responsibilities to team members in order to uphold strong governance practices. We know who is responsible of which data and are accountable for its quality.

3. Data Security

Internal data security is critical. Protecting sensitive information such as employee records demands meticulous access control measures. Implementing stringent protocols and role-based access ensures that only authorized personnel handle confidential data, mitigating risks of unauthorized access.

The O2 experience: We enacted numerous processes and authorizations to ensure that data access was restricted to individuals with pertinent needs, thereby maintaining data integrity and security. With a clear data permission matrix, we were able to define different security groups to ensure everyone only has access to the data they should.

4. Data Integration

Harmonizing disparate data sources necessitates robust integration strategies. Leveraging Extract, Transform, Load (ETL) processes streamlines data importation, ensuring currency and accuracy. 

The O2 experience: With Integration Platform as a Service (IPaaS) solutions such as Celigo or Boomi, the integration of data from diverse sources into a Data Warehouse or exportation into another system has become notably streamlined. I suggest you start by looking at what systems you want to integrate and there are some iPaas that already have pre-built connections, start with this.

5. Data Monitoring

Monitoring ensures adherence to data quality standards, preempting discrepancies that erode user trust. Upholding a commitment to data accuracy fosters user confidence and sustained engagement.

The O2 experience: We built a data quality report where each person that is responsible for a data set gets notified when there are problems in the data so we can fix it as quickly as possible.

6. Data Documentation

Comprehensive documentation fosters shared understanding across stakeholders, minimizing ambiguity and facilitating informed decision-making.

The O2 experience: We made sure each figure displayed on the dashboard was accompanied by a precise definition outlining its components and the methodology used for its calculation.

7. Data Visualization

Tailoring data visualization to end-user preferences enhances comprehension and usability. Personalized dashboards and visualizations empower users to understand trends and take actionable insights.

The O2 experience: By working with the different end users, we were able to develop graphs, charts etc that helped our users to understand and visualize quickly the data and insights they are looking for.

8. Continuous Improvement

Embracing a culture of continuous improvement ensures data initiatives remain agile and responsive, driving enhancements in quality, accuracy, and efficacy.

The O2 experience: Now that we have dashboards, we are always trying to improve our metrics and data. So we have a continuous backlog of new improvements we would like to do in the system. Also, we try to improve our AI and data analytics capabilities by comparing our prediction to what actually happened and hence making sure we are improving our models over time.

Conclusion: your success starts with data

Our BI project was a game changer at O2 Commerce. Empowered by enriched data insights, we’ve elevated our communication, planning, and decision-making. 

One of the best things of this project was the discussion we had with our teams to discuss the different numbers and KPI. It led to a clearer description of what we were looking for and how they could contribute to the organization.

Mastering your data is not a sprint, but a marathon. It demands unwavering dedication and precision. But the rewards are worth it. By harnessing the power of your data, you can transform your business, deliver an exceptional customer experience, and propel your e-commerce to new heights.

Download our free white paper “data-driven B2B Commerce: How to leverage your data and deliver a personalized experience at scale”. Also, our dedicated team of ecommerce experts is here to guide you through every step of your data journey. Don’t hesitate to contact us!

Article by Charles Guimont, CEO, O2 Commerce

Charles Guimont is the president and founder of the agency O2 Commerce, specializing in the design and optimization of data-driven ecommerce experiences. He founded O2 Commerce in 2006 while still in university. Since then, the agency has continued to grow, and 18 years later, it boasts a team of nearly 100 experts spread across two sites in Canada. Passionate about new e-commerce challenges, Charles works tirelessly for the success of his clients by leveraging technology to drive their e-commerce growth.