Future of Profit Analytics on Shopify

Future of Profit Analytics on Shopify

The space of ecommerce profit analytics is fast changing due to both technological innovation and how consumer standards are transforming. New Profit Analysis Trends for Shopify Merchants As Shopify entrepreneurs are looking deeper into how well their business is doing, new trends are beginning to emerge that looks likely to change the way we perform, understand and apply profit analytics.

These new trends concentrate around three things we believe are the most important in 2019: Whether it's AI integration making for smarter decisions, privacy first that protects your and your customers data yet, at the same time uphold analytics precision or getting plug'n'play with newly technology that is giving us visibility we could have never gotten before.

AI and Machine Learning Integration

• Predictive Analytics: AI-driven predictions of profit trends and opportunities is the new frontier for ecommerce intelligence. State-of-the-art machine learning systems can parse enormous volumes of historical data[/translate>, along with seasonal trends, market data and customer habits to accurately predict profit trends in the future. These systems are able to predict demand changes, locate the right windows of pricing opportunity and even forecast which product will help achieve better margins in the next periods.
• Auto-Optimization: Machine learning-based optimization of pricing and inventory on an automated basis such that it turns Profit Management from reactive to proactive. These tools monitor market conditions, competitor prices, inventory levels and customer demand so vendors can make immediate decisions that will help maximize profit margin. Automated optimization can exploit profits that would not be seen when both human bias and reaction latencies are removed.
• Anomaly Detection: AI solutions that recognize behaviors or events that may cause possible problems issue 'early warnings' designed to safeguard profits. These systems may also enable organisations to identify sudden shifts in customer behaviour, atypical changes in costs or returns and fraudulent behaviours that might affect bottom-line. Found early, merchants can intervene and rectify the problem before small issues spiral into large profit losses.
• NLP: conversational analytics interfaces for easier digestible data making complex profit insights accessible to all. Now, instead of having to have technical skills that allow one to decipher dashboards and reports, merchants can just ask questions in natural language and get actionable insights. This enables all team members to do advanced analytics, regardless of whose technical.

Privacy-First Analytics

• Cookieless Tracking: Fresh approaches to customer analysis without the traditional cookie are solving challenges arising from increasing privacy, without sacrificing any analytical truth. With the deprecation of third-party cookies, new methods of tracking such as server-side tracking, first-party data collection, and privacy-preserving measurement continue to provide merchants with insight into customer behavior and enable them to optimize for profitability while preserving individual user privacy.
• Demand for First-Party Data: Using owned customer data to inform profitability is becoming more vital as outside sources of data are scaling back. Through building holistic first-party data collection platforms, merchants can begin developing detailed customer profiles, track true lifetime value, better understand how to optimize marketing spend against known behavior rather than assumptions. This method is capable of yielding a less distorted — and hence more reliable and actionable — profit signal.
• Privacy-Safe Attribution: Keeping attribution pristine without violating user privacy demands a level of modeling complexity that can follow how customers flow through the funnel but doesn't store PII. Sophisticated attribution models leverage aggregated data, statistical modeling and machine learning to determine which marketing touch points drive conversion and profit — while adhering to strict privacy protocols.
• Visible Data Uses: Openly discussing how data is being collected and used can foster customer confidence in contracts, while helping to create better analytics. Customers are more likely to provide consent around data collection if they can see that their data is really being used in a way that enriches their shopping experience or the retail business operation. This transparency allows for a more comprehensive collection of data[/translate>, as well as possessing superior profit analytics and optimization.

Integration with Emerging Technologies

• Blockchain Analytics: Leveraging blockchain technology for supply chain cost visibility offers unparalleled level of visibility and accuracy in managing costs. From raw materials through manufacture to final delivery, products can be tracked via the blockchain, making sure all costs are correctly applied and attributed. This granularity allows for accurate profit calculations and uncovers opportunities to optimize costs across the supply chain as a whole.
• IoT Integration: From integrating Internet of Things data to gain insight into operational costs in your warehouse, to the vendors that are delivering with more efficiency and clarity. And Internet of things sensors can monitor temperature, humidity, movement and other drivers affecting product quality and shipping expenses. This information allows for accurate cost allocation, and the identification of any operational inefficiencies that affect profitability.
• Augmented Reality: Conversion and revenue impact of AR-enhanced product visualization = a new frontier for CX optimization. Merchants can optimise the impact on their profits from AR features by understanding how they influence customer decision-making, conversion rates and return behaviour. It also gives important insights about customer's behavior and tendency of product usage.
• Voice Commerce: Analysing the profitability of 'voice activated purchasing' will require new tools to understand and optimise voice-based customer interactions. As voice commerce scales, companies must get to grips with key factors including how our habits when voice shopping impact on average order values and the pattern of products that we select and how the lifetime value of customers in a world led by Amazon is affected.

How trivas Supports These Future Trends

• AI-Driven Profit Engine: trivas leverages industry-leading machine learning algorithms to deliver predictive analytics that predict profit trends and locate areas for optimization. Our system is constantly learning from your data and getting smarter with every input to be ever more accurate and sophisticated in predicting future profitability.
• AI-Powered Optimization Suite: trivas leverages AI to automatically optimize pricing, inventory, and marketing strategies using current data as well as predictive models. Our algorithm will spot and capitalise on any profit optimisation opportunities without your needing to do anything, so you never lose an opportunity to increase your margins.
• Privacy-First Model: trivas is a privacy-by-design solution and only collects first-party data and privacy-preserving analytics. We enforce GDPR, CCPA and other privacy protection statutes with the analytics precision you need for profitable optimisation.
• Integration with Emerging Technologies: trivas's easy integrations work with such emerging technologies as blockchain, IoT (internet of things), AR and voice commerce platforms, so you can easily record and analyze data from these new technologies. Our end-to-end analytics technology combines legacy ecommerce performance data with the latest in tech trends to provide a holistic view of profit.
• Conversational Analytics: trivas's AI NLP can answer your profit data questions just by asking in plain English and get results you can use. This allows sophisticated analytics to be available to the entire team without needing any technical expertise.

By adopting these emerging profit analytics trends, Shopify merchants today can outdo their competition and make the most out of the profitable opportunities in a more competitive ecommerce environment. trivas offers the resources and capabilities to help you put these trends into action, so your business is ready for the next evolutionary phase of ecommerce analytics.