Data tracking: What is it and why is it more important than ever
Jun 2, 2023

Data tracking: What is it and why is it more important than ever

If you find yourself asking, “What is data tracking?” and “Why should I care about it?” then you’re in the right place. In this article, I will not only answer those questions. I will also tell you how to start using data tracking for your e-commerce business today. The whole idea of data tracking has drastically changed over the last few years.

The world is changing, with regulations, GDPR, and iOS 14,5 all online businesses are fighting for customer/consumer interest. This requires customer personalization and therefore the right technology.
So let’s dive into what it is, why it is important and how you can become the best at it!

Data tracking: what is it?

Data tracking is a way to measure how well your business is performing. It’s collecting and analyzing data to improve business performance, whether it’s related to sales or customer satisfaction. But it is also about tracking how your customers behave. And from there learning how you can use those insights to improve your e-commerce business.

There are many ways to use data tracking in your e-commerce business. You might want to track specific information like:

  • How many new customers visit your website every month?
  • How many sales occur each day?
  • What are the most popular products on your site?
  • What is the profit margin on products and customer segments?
  • Who are the best customers for my business?
  • Who are the worst customers for my business?

Having answers to these questions will help you immensely when it comes to driving a profitable business. And with how the consumer behavior is looking in the 2022 e-commerce climate, it has never been more important to stay profitable. To do that you need to prioritize your resources, and use your data to improve your performance. And Data tracking is key to doing exactly that.

Why is data tracking important?

Data tracking is critical to your e-commerce success. Let’s take a look at some of the reasons why:

  • Data is your most valuable asset. Without it, you won’t know how well or poorly your webshop is doing. Without data, you can’t make informed decisions about what changes to make next. And you won’t be able to make accurate predictions about how big of an impact those changes will have once implemented.
  • The future of your e-commerce business depends on data. Data allows you to get ahead of trends and discover new opportunities before any competitor does. And once other brands catch on, they will be too late!
  • Data gives you an understanding of how your customers are behaving. You will be able to understand what triggers them buying, and what doesn’t.

How can you improve your data tracking?

If you’re looking to improve your data tracking, there are some simple steps to take. First, make sure that you’re using a customer data platform. Then, use that platform to track your data across multiple channels and devices. An e-commerce CDP will help you gather all of this information in one place. So that it’s easier for you to analyze it and make better business decisions based on the information you have available.

The CDP is incredibly powerful for your data tracking because it can create a holistic view of your business. No more having 20 different fragmented versions of what your business looks like.

The CDP can unify all those views and give you better data and insights into your most important KPIs. And it’s based on higher quality data than you would work with usually. This creates a better understanding of what your customers look like. As well as how they behave, and your ability to predict their next purchases.

In addition to helping businesses understand their customers’ behavior better than ever before, CDPs can also help them comply with regulations such as GDPR iOS 14.5. GDPR is a set of rules that require companies operating within Europe (or outside of Europe but dealing with European citizens) to protect personal data by design rather than as an afterthought.

Data tracking provides you with the insight you need to drive your e-commerce strategy.

Data tracking is the process of collecting, analyzing, and interpreting data. It’s the backbone of any modern business, but it’s especially important for e-commerce businesses. This is because there are so many different aspects of your business that rely on data. Including your website performance, customer experience, and your bottom line. They all rely on being able to interpret the data you’re collecting from all over your store and customers.

Data tracking provides insight into customer behavior that can help you improve your e-commerce strategy in several ways. For example, if a lot of new customers are leaving without making a purchase during their first visit to your store. Then you’ll know that something needs to change before they get frustrated enough not to return again.

You can perhaps identify this problem as one where people aren’t finding what they need when they search for products. Or maybe they don’t see any clear calls-to-action (CTAs) pointing them toward products matching their interests or price range.

By improving these elements on-site will increase conversion rates at checkout by keeping visitors engaged with relevant content throughout their shopping journey. This ultimately boost sales. It could also be something as different as different price ranges or preferred communication channels for the different segments. All these things can be tracked with a proper data infrastructure that allows you to take actions based on data insights, quickly.

Better data infrastructure with an e-commerce CDP

The process of handling, consolidating & processing customer, marketing, and product data is known for many E-commerce individuals as tough, time-consuming, and costly and it still is. Without the proper software to work with data means revenue losses, low customer loyalty, short LTV. It hits on both top and bottom-line performance.

One way of getting that proper software needed to get the most out of your data tracking is working with a Customer Data Platform. is made specifically by e-commerce for e-commerce. It can help you increase things like better segmentation, higher customer loyalty, increased customer lifetime value, and much more. 96% of e-commerce stores do not have the needed infrastructure to do so. They can’t personalize experiences or compete on data insights against the bigger players, and it hurts their bottom line and revenue.

An e-commerce CDP like the one from Custimy makes it easier than ever to use data tracking to create results for your business. With a data warehouse, e-commerce stores no longer have to worry about their knowledge being stuck in silos. This way they can once again compete against the bigger players with data-driven decision-making.

It is based on first-party data, meaning that it complies with GDPR, iOS14.5, and all the other data regulations we have seen over the last few years. This is how to future-proof your business with better data insights.


When it comes to data tracking, there are a few things you need to know. First of all, it’s important that you have an idea of what kind of data is most valuable for your e-commerce business. This will help you determine where and how often you should be tracking metrics such as clicks, conversions, and revenue.

Secondly, don’t forget about the human element. Customers still want their experience with brands to be personalized, even after they’ve made a purchase online! In fact, 71% of consumers feel frustrated when a shopping experience is impersonal.

Thirdly (and perhaps most importantly) make sure that any systems or tools used in the process of collecting customer data meet current legal requirements. GDPR regulations must be followed at all times so as not to risk incurring large penalties from authorities if they find out your organization isn’t following them correctly.

And finally, a Customer Data Platform can be the answer to those challenges many e-commerce business face in today’s data tracking landscape