AI-based algorithms and other sophisticated tools provide you with an immense amount of data about your website’s performance. You can follow customer journeys, customize offers, gauge products’ success or failure, measure traffic and session times, and much more. While all this data enables you to grasp many of your strengths and weaknesses, it only provides insights about your own performance over time. 

In order to understand how your brand is truly faring in the competitive world of online retail, you must gauge your products’ performance in comparison to others. Competitive benchmarking is a highly productive process used to compare your enterprise’s performance to that of competitors based on set parameters. 

What is Competitive Product Benchmarking?

Competitive product benchmarking is a strategic process that involves evaluating and comparing your products or services against those offered by your competitors. The goal is to identify your strengths and weaknesses relative to your rivals, understand industry standards, and uncover potential areas for innovation and differentiation. This process provides valuable insights into how your products are performing in the market and enables you to make data-driven decisions to enhance their competitiveness.

Useful Tips on How to Perform Competitive Benchmarking 

Step 1: Define your competitors

Close competitors   

If you are interested in comparing yourself to your closest competitors, focus on the performance of companies similar to your own in terms of scope and products. Study your competitors closely: Follow their SEO performance and see which of their products are failing. Boost your own SEO to pick up their lost traffic. Take note of their product reviews and conduct your own benchmarking surveys to attain actionable insights into ways to boost your own products.

Industry leaders

If your aim is to truly stand out in your industry, study the most successful international brands that sell products similar to your own. Analyze their marketing strategies, pricing tactics and promotional campaigns to discover how they make their brand so popular. Use competitive benchmarking analysis to find effective ways to boost your own name.

Indirect competitors

You might be in indirect competition with companies that sell products similar to your own but serve a different audience. In these cases, there is a certain amount of overlap which could cause your target audience to shift to your competitors’ offering. For example, if your company sells hard copies of books but another sells audio books, they are still competitors although their product is different and they appeal to another audience. Use price benchmarking analysis to compare prices and make attractive offers.  

Step 2: Learn industry best practices 

What are they doing right?

Compare various product aspects vis-a-vis your competitors. What makes your competitors’ products so popular? Their design? The brand message? Special marketing campaigns? Use these insights to improve your own messaging, hone marketing strategies and develop future products.   

What processes are they using?

Compare your processes to those of your competitors. How do they determine pricing? How do they decide what products to sell? What are their main sales channels? Compare your performance against external benchmarks to discern methods that can optimize your own processes. By comprehending how leading performers handle a process, you can make your own processes more efficient and more effective.

What sentiments are you arousing?

You may be offering a great product at a reasonable price while experiencing disappointing results. Use sentiment analysis as a competitive benchmark to see how your appeal compares to the competition. Does your audience feel an allegiance to your products and brand voice? How are leading competitors’ able to command empathy and emotional involvement? Study these strategies in order to learn how to generate personal interaction with your name and products. 

Key Benefits of Competitive Product Benchmarking

Identifying Competitive Advantages: By benchmarking your products against the competition, you can identify areas where you outperform your rivals. Whether it’s superior features, quality, pricing, or customer service, understanding your competitive advantages allows you to leverage them to gain market share and attract more customers.

Pinpointing Improvement Opportunities: Benchmarking also helps you identify areas where your products may fall short compared to competitors. It could be in terms of functionality, design, or customer satisfaction. Recognizing these shortcomings allows you to develop strategies to address them, improve your products, and bridge the gap with your rivals.

Understanding Market Expectations: Competitive product benchmarking provides valuable insights into industry standards and customer expectations. By analyzing how your products measure up, you can gain a clear understanding of what customers value most and align your product development efforts accordingly. This enables you to deliver products that meet or exceed market expectations, enhancing customer satisfaction and loyalty.

Enhancing Innovation: Benchmarking is not just about comparing your products to those of others; it’s also an opportunity to identify innovative ideas and best practices. Analyzing your competitors’ products can inspire you to explore new features, technologies, or business models that can give you a competitive edge. This encourages a culture of continuous improvement and innovation within your organization.

To learn more about competitive product benchmarking, schedule a demo now.

E-commerce has become an integral part of modern-day business. With the increase in online shopping, businesses are always looking for ways to improve their customer experience and drive sales.

The success of any e-commerce business depends heavily on the performance of its products. It is therefore essential for e-commerce businesses to have a strategy in place to maximize product performance. Product performance data optimization is a powerful tool that e-commerce businesses can use to optimize product performance and maximize success. This article will discuss the importance of product performance data optimization and how it can help maximize e-commerce success.

What is Product Data?

Product data refers to the information about a product that is used to describe it to potential customers. This information can include the product name, description, specifications, images, and pricing. This data is crucial in helping customers make informed decisions about whether or not to buy a product.

What Are the Different Sources of E-commerce Data?

There are several different sources of e-commerce data that businesses can use to gain insights into their customers, improve their marketing strategies, and increase sales. Some of the most common sources of e-commerce data include:

1. Website analytics: This includes data on website traffic, user behavior, and conversion rates. Businesses can use this data to identify areas for improvement on their website and optimize the user experience.
2. Sales data: This includes information on sales volume, revenue, and customer behavior. Businesses can use this data to identify trends and make data-driven decisions about their pricing and inventory strategies.
3. Customer data: This includes information on customer demographics, purchase history, and behavior. Businesses can use this data to create targeted marketing campaigns and improve the overall customer experience.
4. Social media data: This includes data on social media engagement, follower demographics, and customer sentiment. Businesses can use this data to improve their social media marketing strategies and better understand their customers.
5. Email marketing data: This includes data on email open rates, click-through rates, and conversion rates. Businesses can use this data to optimize their email marketing campaigns and improve customer engagement.
6. Reviews and ratings: This includes customer feedback on products and services. Businesses can use this data to identify areas for improvement and improve customer satisfaction.

What is Product Performance Data Optimization?

Product performance data optimization is a process of analyzing data related to product performance in order to identify ways to improve product performance. This process involves collecting and analyzing data such as customer feedback, sales data, website analytics, and competitor performance data. The goal of product performance data optimization is to identify areas of improvement and develop strategies to improve product performance.

Why is product data important for e-commerce?

Better customer experience

By providing accurate and comprehensive product data, businesses can improve their customers’ experience. Customers can easily find the information they need to make an informed decision about a product, which can lead to higher levels of satisfaction and repeat business.

Increased sales

When businesses provide detailed and accurate product data, they are more likely to convert website visitors into customers. By providing all the necessary information, businesses can build trust with potential customers, leading to higher conversion rates.

Improved search rankings

Search engines prioritize websites that provide quality content, and product data is no exception. By providing accurate and detailed product data, businesses can improve their search rankings, making it easier for potential customers to find their products.

Improved Competitiveness

Product performance data optimization can also help e-commerce businesses improve their competitiveness by analyzing competitor performance data. By analyzing competitor performance data, e-commerce businesses can identify areas where they are outperforming their competitors and develop strategies to further increase their competitive advantage.

Reduced Risk

Product performance data optimization can also help e-commerce businesses reduce risk by identifying areas of potential risk and developing strategies to mitigate those risks. By analyzing customer feedback, sales data, and website analytics, e-commerce businesses can identify areas of potential risk and develop strategies to reduce those risks.

Improved Decision-Making

Product performance data optimization can also help e-commerce businesses make better decisions by providing them with valuable data and insights. By analyzing customer feedback, sales data, and website analytics, e-commerce businesses can gain valuable insights that can help them make better decisions.

How to use product data effectively

Be consistent

It is important to be consistent with the way product data is presented across all channels. This includes product names, descriptions, and images. Consistency helps build trust with customers and improves the overall customer experience.

Provide accurate information

Accuracy is crucial when it comes to product data. Providing inaccurate information can lead to dissatisfied customers and a damaged reputation. It is important to verify all product data before publishing it online.

Keep data up-to-date

Product data should be regularly updated to reflect any changes to the product, such as pricing or availability. Keeping product data up-to-date ensures that customers have access to the most current and accurate information.

How to Implement Product Performance Data Optimization

Implementing product performance data optimization can be a complex process, but it is essential for e-commerce businesses to maximize success. Here are some steps that e-commerce businesses can take to implement product performance data optimization:

1. Collect Data

The first step in implementing product performance data optimization is to collect the necessary data. This data can include customer feedback, sales data, website analytics, and competitor performance data. E-commerce businesses should also collect data on customer demographics, product performance metrics, and customer satisfaction.

2. Analyze Data

The next step is to analyze the data in order to identify areas of improvement. E-commerce businesses should use data analysis tools such as predictive analytics and machine learning to identify areas of improvement.

3. Develop Strategies

Once the data has been analyzed, e-commerce businesses should develop strategies to optimize product performance. These strategies can include optimizing pricing, improving customer service, and developing new products and features.

4. Monitor Results

Once the strategies have been implemented, e-commerce businesses should monitor the results in order to ensure that the strategies are having the desired effect. E-commerce businesses should also use data analysis tools to monitor the results in order to ensure that the strategies are having the desired effect.

How Cluster Can Help

At Cluster, we understand that businesses need to have their products perform at their best to stay ahead in the market. Our team of experts has years of experience in helping businesses optimize their products for the best performance. We offer a range of capabilities that can help you achieve this. Book a Demo Now.

Here’s the golden rule for every online enterprise or marketplace: Your online catalog must always be up-to-date and search friendly, despite the rapid influx of inventory and fluctuation in product availability. That is easier said than done, especially if you handle a wide variety and large volume of products from different countries. 

Well-organized product categorization and classification are key to your website’s traffic and customer search engine, but also contribute significantly to your logistics and operations behind the scenes. In order to prevent costly errors due to faulty product classification, you need an AI-based platform that automatically and accurately categorizes merchandise. 

What is Product Classification

Product classification is a crucial process for any eCommerce business. It involves categorizing products based on their attributes, such as size, color, and material. However, manually classifying products can be time-consuming and prone to errors, which is where AI comes in. In this blog post, we’ll explore how AI can boost product classification and help eCommerce businesses save time and improve accuracy.

Use machine learning algorithms

One of the most effective ways to boost product classification with AI is to use machine learning algorithms. These algorithms can learn from existing product data and use that knowledge to classify new products automatically. For example, an algorithm could learn that a certain set of attributes is associated with a particular product category, such as shoes, and then use that knowledge to automatically classify new shoes based on their attributes.

Train your AI models

To get the most out of AI for product classification, it’s important to train your AI models on a large and diverse set of data. This can include product images, descriptions, and other attributes. The more data your AI models have to learn from, the more accurate they will be at classifying products.

Incorporate natural language processing

Natural language processing (NLP) is a branch of AI that can help improve product classification by analyzing and understanding text-based product descriptions. By using NLP, AI can automatically extract relevant product attributes from product descriptions and use them to classify products more accurately.

Use image recognition

Image recognition is another powerful AI technology that can be used to boost product classification. By analyzing product images, AI can automatically identify product attributes such as color, shape, and pattern. This can help improve the accuracy of product classification and reduce the need for manual intervention.

Integrate with your eCommerce platform

To get the most out of AI for product classification, it’s important to integrate it with your eCommerce platform. This can help automate the classification process and reduce the need for manual intervention. For example, an AI-powered product classification system could automatically categorize new products as they are added to your eCommerce platform, saving time and improving accuracy.

What are the benefits of AI-powered product classification? 

Empower accurate product mapping

In order to ensure accurate product mapping, you must first create organized product groups. This means forming macro-categories (dresses, for example) and micro categories that logically fall underneath the main category (casual dresses, summer dresses, etc). AI-powered product taxonomy enables accurate macro and micro categorization predictions based on category ID and taxonomy tags. Product classification using machine learning prevents costly manual mistakes.   

Optimize tariff classification and customs compliance

When dealing with a large volume of products from numerous countries and various retailers there is much room for error. An AI-based system has the ability to use data such as manufacturer, product description and other input to automatically ensure customized classification and accurate tariff codes. The machine-learning classification module can be modified based on each country’s code in the Harmonized Commodity and Coding System, facilitating faultless shipments to customers worldwide.  

Recommend products based on past customer experiences

AI-based classification can be used to recommend new products based on a customer’s past browsing and purchase history. Today’s customers desire personalized content and special offers based on their individual preferences. AI-categorization, which provides actionable insights, enables the delivery of individualized messages. This machine learning tool is used by large businesses like Netflix and Spotify. 

Correlate crucial data of different classes

Aside from the ability to match data within a given class, AI-based techniques also enable the correlation of data from different classes that share association. Machine learning integrates meta-data analysis to achieve a deeper understanding of data. This input enables more discerning automatic cataloging for easy discovery through search. By combining in-depth classification and correlation capabilities, AI provides enterprises with the tools to locate, inventory and map crucial data.

The days of manual categorization for online catalogs are long gone. With inventories counting tens of thousands or even millions of products, most large enterprises are transitioning to automated AI-based platforms to ensure consistency, prevent duplications, and increase customer traffic. 

Amazon is a powerhouse in the online retail world. With its vast array of products and services, it is no surprise that Amazon is the go-to platform for many businesses to get their products or services in front of the right customers. However, it can be challenging to understand how to effectively use Amazon to its fullest potential when it comes to leveraging data and gaining insights about customer behavior.

At Cluster, we understand that as a business owner, you want to make the most of your online presence. In order to do so, it’s important to have a deep understanding of how your competitors are performing on platforms like Amazon. That’s where our Amazon Insights tool comes in.

Why Analyzing Amazon Data is Important

Analyzing Amazon data provides valuable insights that can be used to optimize your Amazon business. It can help identify areas of opportunity, uncover customer preferences, and inform strategic decisions. By understanding your data, you can make informed decisions on how to best grow and optimize your business.

For example, analyzing your Amazon data can help you identify products that are underperforming, as well as identify which products are most popular with customers. This knowledge can help you make decisions on which products to prioritize, as well as which products to discontinue or improve.

Analyzing Amazon data can also help you understand customer behavior, such as which products customers are searching for, how often they are returning to your store, and how long they are staying on your website. This information can help you tailor your marketing and promotional campaigns to best suit the needs of your target audience.

In addition, analyzing Amazon data can help you identify trends in customer behavior, such as which products are most popular in different demographic groups or in different locations. This information can help you target the right segments of customers and better cater to their needs.

Best Practices for Analyzing Amazon Data

Now that we’ve discussed why analyzing Amazon data is important, let’s go over some best practices for data analysis.

1. Start with the Basics

Before diving deep into your data, it’s important to start with the basics. Begin by gathering data on key metrics and trends, such as sales, revenue, customer engagement, and customer reviews. This will give you a good starting point and provide you with an overview of your performance and customer behavior.

2. Identify Your Goals

Once you have an understanding of your data, it’s important to identify your goals. What do you want to achieve with your data analysis? What insight do you hope to gain? Knowing your goals will help ensure you are focusing your analysis on the right areas.

3. Clean and Organize Your Data

Once you have identified your goals, the next step is to clean and organize your data. Data can be messy and difficult to interpret, so it’s important to make sure it is organized and easy to understand.

4. Analyze Your Data

Once your data is organized, it’s time to start analyzing it. Begin by looking for patterns and trends that can help you understand customer behavior and identify opportunities for improvement.

5. Visualize Your Data

Data visualization is an important step in data analysis. Visualizing your data can help you identify patterns and trends more quickly and easily. There are many tools available to help you visualize your data, such as Tableau, Microsoft Power BI, and Google Data Studio.

6. Take Action

Once you have identified insights from your data, it’s time to take action. Use the insights you’ve gained to inform your decisions and optimize your Amazon business.

How to Use Insights Gained From Your Amazon Data

Now that we’ve discussed best practices for analyzing Amazon data, let’s talk about how to use the insights gained from your data.

1. Optimize Your Product Listing

Analyzing your Amazon data can help you optimize your product listings. You can use the insights gained from your data to determine which products are most popular with customers and which products are underperforming. This information can help you make decisions on which products to prioritize and which products to discontinue or improve.

2. Tailor Your Marketing and Promotional Campaigns

Analyzing your Amazon data can also help you tailor your marketing and promotional campaigns. You can use the insights gained from your data to understand customer behavior and target the right segments of customers. For example, you can use the data to identify which products are most popular with different demographic groups or in different locations.

3. Improve Your Customer Service

Analyzing your Amazon data can also help you improve your customer service. You can use the insights gained from your data to understand customer preferences and identify areas of improvement. For example, you can use the data to determine which products customers are searching for and how often they are returning to your store.

4. Sales Performance Analysis

One of the most important factors in your Amazon strategy is sales performance. With an Amazon Insights tool, you can gain a deep understanding of how your competitors are performing in terms of sales volume and revenue. This information can help you identify areas where you can improve your own sales strategy, and stay ahead of the competition.

5. Product Pricing Analysis

A variety of Amazon Insights tools can provide you with detailed data on product pricing for your competitors’ products. This information can help you identify areas where you can improve your own pricing strategy, and stay ahead of the competition.

6. Competitor Analysis

Analyzing your competitors’ data can also provide valuable insights. By analyzing their sales data, pricing, and customer reviews, you can identify gaps in the market and opportunities to differentiate your products from theirs.

For example, you might discover that your competitors are offering a similar product at a lower price, which could prompt you to adjust your pricing strategy. Alternatively, you might notice that your competitors are receiving consistently negative reviews for a certain feature or aspect of their product. This can help you identify areas where you can differentiate your product and offer a better customer experience.

In addition to analyzing your direct competitors, you can also look at broader market trends and patterns. For example, you might notice that certain product categories or trends are gaining popularity among customers. This can help you identify new product opportunities or adjust your existing product line to meet changing customer needs.

7. Advertising Campaign Analysis

Amazon offers various advertising options to sellers, including Sponsored Products, Sponsored Brands, and Sponsored Display. By analyzing the performance of your advertising campaigns, you can determine which campaigns are generating the most sales and adjust your strategy accordingly.

For example, you might discover that your Sponsored Products campaigns are generating more sales than your Sponsored Brands campaigns, which could prompt you to allocate more of your advertising budget to Sponsored Products. Alternatively, you might notice that certain keywords or ad placements are generating more sales than others. This can help you optimize your ad targeting and improve the ROI of your advertising campaigns. In addition to analyzing the performance of individual advertising campaigns, you can also look at broader trends and patterns.

8. Inventory Management

Analyzing your inventory data can help you make informed decisions about inventory management. By analyzing your inventory levels and sales data, you can identify which products are selling quickly and which ones are not. This information can help you adjust your inventory levels and prevent stockouts.

For example, you might notice that a particular product is selling faster than expected. This can prompt you to order more inventory to avoid running out of stock. Alternatively, you might notice that a certain product is not selling as well as expected. This can prompt you to adjust your pricing or marketing strategy to boost sales.

You can also use data to forecast future demand. By analyzing historical sales data and trends, you can predict how much inventory you’ll need to order in the coming months. This can help you avoid overstocking or understocking, which can lead to lost sales or excess inventory costs.

How Cluster Can Help

To get the most out of your Amazon data, it’s important to have the right tools and resources in place. This might include data analytics software, customer feedback platforms, or inventory management systems. By investing in tools like Cluster, you can ensure that you’re able to collect and analyze data effectively and make informed decisions that drive business growth. Book a demo now.