Retail surgery: How can I find useful online data?

The amount of data retailers can now access online is both a blessing and a curse. They can discover more about their performance than ever before, with data on everything from search behaviour and purchasing habits to news, opinion, reviews and recommendations.

But the challenge for retailers, says Amanda Davie, managing director at digital consultancy Reform, is “separating the wheat from the chaff”. She recommends a three-step process. Firstly, make sure you’re getting the right data. “This means knowing what information fits your strategy and not getting lost in everything else,” she says.

Secondly, retailers need to look at the raw data objectively. “If you want to focus on retention, you need to analyse the habits of your existing repeat customers,” says Davie.

The third step is to build action plans around your findings. Start by picking two or three areas of interest from the data analysis and focusing on these. “If the data shows a trend, test the theory. Segment your targets and run a simple A/B test of your home page - for example, show one group free postage and packing with orders over £50, and run the second without this offer,” says Davie.

There are pitfalls to avoid. One is only measuring data by quantity, not quality. “Web traffic is all very well, but data like comments and feedback can be invaluable,” she says.

Another is treating all data the same. “There are many types of conversations online, but we often apply our own subjective barometer, which judges whether they’re positive or negative,” Davie adds.

Finally, don’t view data sources in isolation. Blog posts, searches and tweets combine to give a more accurate picture of customer intentions.