Alerts and Notifications – Monitor Business Performance with Ease

Posted By: editor
Posted On: 17 Dec, 2021

The shift in shopping habits driven by digitization and the recent pandemic has led to the dramatic expansion of e-commerce. And, more online stores are popping up like mushrooms. It has given way to intense competition.

While owning a store has never been enough, mere marketing and digital advertising also will not cut it anymore. To take their e-commerce brand further, e-tailers need to stay on top of their website and respond quickly to the changes and issues that impact customer experience. Doing this can make the customer experience smooth and ensure they do not go running to rivals. E-tailers can achieve this by configuring notifications and alerts.

Notifications or alerts are among the most valuable time-savers in analytics. They prevent e-tailers from wasting time rooting around in dashboards every day and focus their attention on notable changes, anomalies, or fluctuations in metrics or data on website performance and customer behavior. Armed with this information, they can resolve the issues as early as possible to mitigate the damage.

E-tailers can set the alerts/ notifications to the specific team members/ functions who are experienced and can handle a metric change. For instance, notifications related to inventory management can be sent to supply chain related teams so that they can take timely action.

Here, we will discuss several types of alerts and notifications that e-tailers can take advantage of. We will also talk about some crucial metrics that e-tailers must monitor daily to stay on top of their business.

 

Types of Alerts:

 

Threshold alerts: These alerts trigger whenever the monitored metric goes above (or below) a user-defined threshold. E-tailers can use thresholds to surface unacceptable performance immediately. Moreover, a threshold alert need not be an absolute red line—one can include a time component in alert evaluation to avoid false positives caused by momentary blips. For instance, one can trigger alerts on page load time if the avg value for a period of 15 minutes crosses a certain threshold.

Change alerts: These alerts evaluate the volume or percentage change in a metric over a particular time interval. For instance, an alert based on volume change can be generated when a product order reaches a certain amount so that one can check the inventory of the product.

Alerts based on the percentage change in volume help identify changes in metrics where the baseline is variable over longer timespans. For instance, one can track changes in revenue using % change as there can be a revenue trend increase from time to time due to the growth in the business.

Anomaly alerts: These alerts look for deviations from recent historical trends. An anomaly alert can account for seasonality (such as daily traffic patterns), allowing one to get notified only when metric peaks or drops cannot be explained by normal, periodic fluctuations.

Event alerts/ triggers: Unlike metric alerts, which evaluate a continuous stream of time-series data, event alerts trigger discrete occurrences, which may be rare. For instance, an event alert can be triggered when visitors land on 404 error pages.

Goal completion alerts: These alerts look for the completion of a pre-determined task – the addition of products to the cart but abandoned later. One can send cart abandonment emails to these customers prompting them to complete the purchase.

 

Till now, we have seen the types of alerts. Now, let us look at some of the crucial metrics which need to be monitored regularly using the above alerting types. Automating the alerting process for these metrics can ensure the business is on top of things, but brands can also have customized or specific short-term triggers as per their requirement.

 

Important Metrics:

 

Revenue: It is crucial to monitor both spikes and decreases in revenue. Spikes in revenue (in the absence of promotional campaign or seasonality) might indicate an increase in demand. It presents an opportunity to maximize sales or increase stock levels. One can also set alerts specifically for product/ channel revenue.

Traffic: Traffic is one of the vital metrics of an e-commerce business. It is crucial to monitor both spikes and decreases as spikes can either indicate opportunity or bot activity.

Conversion rates: A decrease in conversion rate can be due to slow landing pages, broken checkout funnel, tracking code, or even seasonality. It is crucial to monitor conversion rates so one can resolve any issues as quickly as possible. One can also monitor conversion rates by channel to evaluate individual channels’ performance.

Bounce rate: A higher bounce rate can be due to multiple reasons – bot traffic, poor user experience (page not loading as expected, page content not meeting the user’s intent).

Page load time: A slow-loading page will lead to a high bounce rate and a decrease in conversion. One can compare the load time with the industry average and set alerts in case of deviation.

AOV: Monitoring AOV can help test the success of business decisions around topics like ad spend, pricing, and campaign building (like upselling, cross-selling, or offering promotional deals and discounts).

 

Conclusion:

 

It is easy to lose track of what really matters while monitoring plenty of KPIs and managing a lot of dashboards. Alerts and notifications help e-tailers out with that: as soon as a pre-defined goal is met, or whenever an unexpected event happens, concerned team/ individual can be notified so that they can have full control over what drives their business.

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