How to Use

Data Analytics
to Grow Your Business

| www.instamojo.com
TABLE OF CONTENTS

Introduction 3

CH 1 Are You Afraid of the Numbers? 4

CH 2 Key Metrics Every Business 7

Should Track

CH 3 Customer Lifetime Value: 16

The Magic Growth Metric

CH 4 Tools to Keep Track of Your 21

Business Analytics
 Introduction
Data can work magic for businesses. It helps you identify
trends, strengths, weaknesses and gives you surprising
insights on customer behavior. How can small businesses use
this to an advantage?

Let’s talk about data analytics for small businesses.

The importance of data is growing as we continue to collect

more data than ever. Understanding customer behavior has
become a priority for every business, regardless of its size.

Taking direct customer feedback (via conversations or surveys)

has always been a great way to collect business insights, but
that can only go so far. Customer behavior data can reveal
several important things – who is your customer, where they
are based out of, what they like and so on.

In this ebook we will cover every data point that your business
should be tracking and approaches that will help you make
decisions backed with numbers for better growth.

| How to Use Data Analytics to Grow Your Business

3
 CHAPTER 1

Are You Afraid

of the Numbers?
Afraid of the numbers? Confused about where to start?

You’re not alone.

According to Analytics India Magazine, many small businesses still

struggle to understand data.

Here are some of the biggest challenges for SMEs when it comes to
data:

Concerns around the cost and complexity of big data

solutions

Lack of understanding of technology stack

Lack of a data-centric culture is also a key challenge

Senior management grapples to justify high investment & RoI

A limited number of use cases available in the Indian SME

ecosystem

There are several solutions built just for businesses like you, so you
can adapt data analytics easily to make sound business decisions.

Before jumping into the technicalities, let’s answer one root

question:

Why should you be using numbers to make business decisions?

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 No matter what your goal, if you can justify it with
PRO TIP! numbers, you are justifying it good.

Here are some important reasons you should be using data to

measure business:

Data helps you understand what is working for your

business and what isn’t. You could be wasting your time and
money on activities that are yielding you no return. Data can
help you check that.

Data can help you serve your customers better! Personalize

your product/service and give them a greater experience with
the help of numbers.

Data allows you to maximize your profits. Understand where

you are spending your money and optimize budgets on
campaigns that work.

Building funnels and improving lead conversions is a

cakewalk when you know what to show, to whom. That can
only be possible when you’re tracking everything with data.

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 CHAPTER 2

Key Metrics Every

Business Should
Track
Ever heard of the term KPIs?

Key Performance Indicators (KPIs) help identify what’s been doing

well for a business and what’s not. These key metrics can:

Show you the health of your business

Predict its future
Help you replicate success and
Avoid pitfalls and losses

Let’s cover some key metrics you should be familiar with and track
for your e-commerce or online business.

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Learn More about these terms here

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Apart from these, there are some specific performance marketing
and eCommerce/online store data metrics that you should be
tracking too.

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 CHAPTER 3

Customer Lifetime
Value - the Magic
Growth Metric
In the fast-evolving e-commerce arena, sites need to be fully and
precisely aware of who their best customers are and the value that
they can deliver over the years. The metric that delivers this
comprehensive insight is Customer Lifetime Value(CLV).

CLV homes in on the most critical value for a company which is that
of a customer’s long-term potential.

Customer Lifetime Value

Many industries lack a holistic strategy that incorporates the best of

marketing, customer experience and customer nurturing. This leads
to low CLV.

CLV represents the revenue a customer potentially brings in over

the years. There are a number of ways to arrive at the CLV of a
customer.

The basic variables that make-up CLV are

Recency,
Frequency and
Monetary Value(RFM)

Recency presents your customers based on how recently they made

a purchase. Frequency presents your customers based on how

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often they make a purchase from you. Monetary Value presents
your customers based on the value of the purchase they make.

The ordered values assigned to these data points can create a

scoring grade for all your customers. You can create different
categories based on different values of the RFM scale. With RFM,
you have almost all that you need to begin deducing the Customer
Lifetime Value.

How to Calculate CLV

Here are the steps to calculate CLV.

1. Total up the value of all the sales.

2. Calculate Average Order Value (AOV). AOV = Total Sales/

Number of Orders.

3. Calculate Frequency. Frequency = Number of orders/Number

of Customers.

4. Get Customer Value. Customer Value = AOV x Frequency.

5. Get CLV of a customer. CLV = Customer Value x Active Lifetime

of Customer. Active Lifetime of Customer is the timeframe in
years or months a customer has been active on your site.
(If you are looking to calculate CLV of customers in specific
categories, it is possible to do so by using values for just that
category.)

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Why you should be using CLV

A clear roadmap is available for an e-commerce store that works

with the CLV metric. CLV calculation shows that the Average Order
Value is a crucial variable. Work on discount and check-out offer
strategies to influence customers to increase their order amounts.

In terms of customer engagement, there are many ways to keep

talking and building a close relationship with customers.

Listen to your customers

Keeping track of what is going on in Social Media is very important

for an E-commerce business to find out what customers think.
Engaging with customers and enabling the product to be
transmitted through word-of-mouth on social media greatly
reduces the acquisition costs that eat into CLV.

Consistent Messaging

When a brand builds up and delivers its messaging (marketing)

with a well-defined strategy and one that is broad-based, customers
will always be interested. This is in contrast to a business that is
reactionary and wakes up in fits and starts with what needs to be
done to drive consistent customer traffic.

| How to Use Data Analytics to Grow Your Business

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Keep making the relationship better and better

As customers continue with their purchases at your store, make

sure that you make them feel they are getting increasingly better
offers. Customers need to feel that they are continually progressing
to a stronger and more valuable relationship with your business.

Site Load Time

This must be on the top of the list of winning new customers. After
having done all the hard work to bring customers in, slow page-load
times will be a big disincentive especially so at Checkout. A faster
and simpler checkout process is important in increasing CLV.

With the CLV-based method of categorizing customers, numerous

insights can be derived in terms of marketing campaigns. With the
conduct of each outreach, predictive CLV provides a way of
discovering the impact of the campaign and what needs to be done
to improve it.

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 CHAPTER 4

Tools to Keep
Track of Your
Business Analytics
Instamojo has been empowering businesses of all sizes on its
platform. We provide several features like online payments,
invoicing, store, shopping cart — and the latest on the list are the
“Analytics Dashboards” which allows a small business to get
in-depth insights on their customer and their traits.

Let’s check out what Instamojo Analytics is all

about!

There are six data dashboards that offer information you can use to
track customer behavior:

Analytics Overview

What it shows:

An overview of your sales on Instamojo for different periods.

You can also check the trends of average transaction size and
daily sales/payment volumes.

Why it’s useful:

Allows you to get a quick overview of how your business has

been doing and spot any dips, seasonalities and good or bad
patches over time. You can also get your sales numbers for
quick accounting or other use cases, without downloading
tedious excel sheets with transaction-level data.

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Daily Sales Volume Trend for a Seller

Sales Break-Up and Payments Break-Up

What it shows:

More information on where your customers are, what devices,

browsers and operating systems they are using. Also shows
your sales by hour of the day and day of the week.

Why it’s useful:

A better understanding of which devices/browsers you should

optimise your blog/website for. To figure out which cities or
states your customers are from, and which ones you could
expand more to get more sales.

Hour-of-the-day and day-of-the-week trends can help you to

fine tune your email and social media marketing, as well as run
discounts at the most opportune time. For example, if you see

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that sales are dimmer during Wednesday/Thursday (mid-week) for
you, try offering a discount on those days. And if you see volumes
are particularly high on weekends, Sunday might be a great day to
send a custom email with latest products to your base.

Heat map showing where major sales happen. (Here – Mumbai and Bengaluru)

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Visitors

What it shows:

How many people are visiting your links, product pages and
online store from what sources (Google/Facebook/Blog/Your
Website etc.). What’s the visit-to-payment conversion rate on
your links and product pages. Going deeper, which users tried
to pay you (entered their name/email/phone details), but did
not complete the payment.

Why it’s useful:

To understand what sources are bringing your users to your

store/website/blog, so that you can determine ROI on
advertising channels by focusing on the more efficient channels.
Helps you to find out your best converting links and products.
You can also send a reminder email (with an offer, if you’d like)
to users who were interested but didn’t end up buying your
product or service.

Retention

What it shows:

How many people are buying from you every month

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What it shows:

Mainly for businesses trying to get recurring customers, such as

subscription businesses, or regular tutorial sellers. You can see
how many of the people who bought from you once, came back
again to buy more. This helps in understanding how many
customers are churning fast enough and determines if you
need to tweak your product, marketing and discounts
accordingly.

Compare to Benchmarks

What it shows:

Data of your customers, compared to the benchmarks of the

small business industry, derived from proprietary sources.

Why it’s useful:

To see how close or far you are from small business industry
norms on various parameters. You can get insights into where
you could do better, on which parameters your business is
significantly different from the average industry trends.

For example, if you see that the number of people paying you
from their mobile/smartphone is much lower than the industry

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normal, it may be a warning sign that means you should work on
making your website mobile-friendly, as the average buyer is going
mobile faster than you might have thought.

Comparison of your sales to the benchmark by day of week — for this seller,
mid-week sales are better than average

That’s not it!

You can filter all the dashboards by any date range that you would
like (ranging from all time to last one day), and group relevant
charts by days/weeks/months/quarters and years to understand
trends in any way you’d prefer.

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Available Filters on Dashboards

We hope you will love using this feature as much as we loved

building it. It opens up endless possibilities to gain invaluable
insights from your sales and payments data. This should help your
grow your business by listening to your customers — even when
they aren’t directly speaking to you.

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Shoppr App on
Mojo Developers
Program
Shoppr - Advanced e-commerce app for your online
business
Your business can grow organically. But using data effectively can
double that business growth in a matter of months. To help you
amplify your business, we bring to you the Shoppr App – a tool that
provides insights that truly matter to your business.

What is Shoppr App?

As one of the first offerings of the mojoDeveloper Program, Shoppr

is an app that connects to your Instamojo online store using a really
simple integration process and gives you access to your store and
customer data + analytics.

Shoppr App is now available for FREE on Instamojo App Store

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Track 40+ user metrics with Shoppr App

On Shoppr, your data is divided into:

Sales
Orders
Customers dashboards

Each of these allows you to deep dive into these functions that
collectively present 40+ metrics and stats to help you make better
decisions for your E-Commerce Business.

Shoppr App features you’ll love

The app comes loaded with advanced features you’ll love looking
at:

Track orders and customers registered over a set period of time

on your Instamojo online store

Set growth targets for your online store as success metrics

Track growth metrics for a set period of time, without any effort
from your side

Meter & monitor your growth for comparison

Think of the advantage of having a trip meter on your car

Example to track your distance from point A to point B.

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Shoppr for your marketing activities

Apart from this, Shoppr also connects with your Instamojo online
store’s Marketing Channels like Google Ads, Facebook Ads, and
Mailchimp.

This helps you keep better track of your Marketing Campaign per-
formance along with what’s happening in your store in real-time.
You can learn more and sign up for a free trial on Shoppr.ai

Why should you choose Shoppr App?

Simply because Shoppr can give you gem insights on your

Instamojo online store:

Customers visiting your Instamojo online store

Trends among buyers

Patterns that influence your customer buying behavior and

more

Shoppr can help you understand:

Which product/service is the most popular

When are your products/services selling the most
At what point are customers dropping off
Churn and retention patterns of our customer base
How your marketing campaigns perform

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It becomes really crucial to have access to your store’s data in a way where you can better

judge how your business is performing. Not only this – the dashboards on Shoppr can also

be customized to track your store growth based on a predefined metric i.e. amount of

Sales, Orders or Customers, for a set time period, which will allow you to enforce

result-driven marketing decisions which in return will help your business grow.

Make faster and better business decisions with

Shoppr
Running ads on your Instamojo store? Sending email campaigns
about new products or additions? Get all performance data on
Shoppr’s customizable dashboards.

All the information on marketing campaigns is available right inside

Shoppr’s Marketing Campaigns dashboard, which will not only help
you save time from switching between platforms but also provide
better context on the efficiency of your campaigns

It automatically pairs the campaign data with your Instamojo store’s

data on all of Shoppr’s dashboards.

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As seen in the snapshot above, you can keep track of customer
metrics

Churn vs. Retention over time – which basically tells you about
the value of customers your Marketing Channels are bringing
you

New vs. Repeat customers on your store – that show how loyal
your customers are and how often they purchase etc.

Distribution of Regions – that show geographies bringing in the

most orders and Top selling products.

Similarly, you can also track your store’s orders and sales trends
over time, distributed by region, volume and plotted on a time
graph. This helps you realize the months and weeks customers are
most likely to come back and spend on your store.

This is especially helpful if yours is a seasonal business.

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Shoppr is an MDP Offering!
Last month, we launched the Mojo Developer Program to connect
startups and developers to build for the million merchants on
Instamojo.

Factoring in how MSME’s make for a large chunk of India’s GDP (8%
of GDP in 2016 to forecasted 15% in 2020), Mojo Developers
Program provides an opportunity to developers worldwide to
enable small scale operators to medium size businesses in India
who are yet to have access to industry-standard tools that rest of
the segments have been utilizing for the last decade.

Mojo Developer Program is one of the most value-focused initiatives we’ve seen

from a tech company in India (and Internationally) so far. The platform helped us

connect Shoppr’s technology with Instamojo’s Platform, allowing it to potentially

reach to 1,000,000+ MSME’s making use of Instamojo for operating and managing

their businesses.

Mojo Developer Program enabled us to build and tailor a product for the largest

Business audience in India, helping us truly realise the potential of Shoppr’s

cutting edge technology combined with Instamojo’s platform for sellers, making it

highly impactful for Small business ecosystem and enabling users on their

platform have access to latest tools while also helping developers with resources

and guidance to build better products for these users. – Team Shoppr

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Shoppr is one of our first offerings on the mojo Developers plat-
form. Want to access cutting-edge technology and growth tools like
Shoppr? Sign up to discover the Instamojo App store today!

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Powering 1,000,000+
Businesses like you
in India

Get more than just a payment gateway. No setup fee,

No maintenance fee. Use it the way you want !

Get Started With Your Instamojo Payments

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