Almost all studies show that 90% of information is transmitted to the brain visually, so it is little wonder that data visualisation has become so important as an e-commerce business intelligence tool.
As consumer demand increases with the advent of new technologies, there is a greater need for businesses to implement software able to identify patterns they can respond to quickly and effectively.
Firms operating in this space can simply no longer afford to be without a data dashboard for decision-making purposes.
E-commerce is growing exponentially in South Africa, with findings in World Wide Worx’s ‘Online Retail in South Africa 2024’ report showing the country’s online retail sector surged to R71 billion last year – a 29% increase from 2022.
Data dashboards are becoming commonplace across industries.
For example, digital-only GoTyme Bank has partnered with data architecture specialist Keyrus to improve its data visibility to optimise operations.
There can be no doubt that the quality of decisions hinges on the quality of data relied on.
While intuition and experience are valuable in making good business decisions, combining these with accurate data significantly enhances the decision-making process and leads to better outcomes.
Managing supply chain partners requires more than just intuition; it demands data to accurately measure their performance and drive improvements.
As an extension of your e-commerce business, they must be managed with the same level of rigour and accountability.
There are certain metrics and indicators that should be tracked on a dashboard, particularly when it comes to last-mile deliveries, which are a significant part of an ecommerce business’s service offering.
Paying delivery partners is one of an ecommerce store’s biggest expenses, so it is crucial to track these service providers, not only from a performance standpoint, but also from the perspective of cost. According to Erasmus, the key metrics for tracking performance and profitability are:
- Average cost per shipment: The typical expense incurred for each shipment.
- Average order weight per shipment: The standard weight of orders being shipped, affecting shipping costs.
- Average cost of return shipments: The average expense associated with returned orders.
- Average shipping income paid by buyers: The average revenue earned from shipping fees charged to customers.
- Average delivery time per service level: The typical time taken to deliver orders based on the chosen service level.
- Average time between booking and collection: The average time it takes for a shipment to be collected after being booked.
- Success rate of deliveries: The ratio of successful deliveries to failed ones.
Of course there are some challenges with data dashboards, accuracy and timeliness being the major ones.
Accuracy issues arise from data entry errors, inconsistent sources, outdated information and biases. Ensuring data accuracy involves robust validation, cleaning processes and regular audits to keep data relevant and reliable.
Timeliness, meanwhile, is hindered by delays in data collection, processing, and the need for real-time information. Automating data entry, using real-time analytics tools, and streamlining processing can improve timeliness.
Online sales businesses should not only make use of the data provided by their supply chain partners, but make sure to track their own data. In doing so, they will be able to compare the data and identify possible mistakes and misalignments.
It’s advisable, though, that data should not be too complex.
Start with analysing the basics and build on that as your business grows. Too much data can also lead to confusion. Be clear on what you want to measure and measure that over time.
