Why 3rd Party Software Tracking
3rd party tracking software is especially important in today’s highly competitive e-commerce market, it’s more important than ever to make informed decisions based on accurate data. While most e-commerce businesses use tracking tools like Google Analytics, it’s becoming increasingly common for businesses to rely on third-party tracking software to gain even deeper insights into customer behavior and campaign performance.
Heck, even some Google reps recommend 3rd party tracking.
In this blog post, we’ll explore why third-party tracking software is important for e-commerce businesses, and how it can help businesses to optimize their campaigns and achieve better results.
What is Third-Party Tracking Software?
First, let’s define what we mean by third-party tracking software. Essentially, this refers to any software that tracks user behavior and campaign performance, but is not owned or operated by the e-commerce business itself. Instead, third-party tracking software is typically a separate platform or tool that integrates with an e-commerce business’s website or advertising platform to gather data.
Examples of third-party tracking software include platforms like TripleWhale, AdRoll, Marin Software, and Kenshoo, which offer advanced tracking and optimization tools for online advertising campaigns.
Why Use Third-Party Tracking Software?
Now that we’ve defined what third-party tracking software is, let’s explore why it’s important for e-commerce businesses.
More Accurate Data
One of the biggest advantages of third-party tracking software is that it often provides more accurate data than what’s available through standard tracking tools like Google Analytics. This is because third-party tools can offer more detailed tracking and measurement of user behavior across multiple channels and devices.
For example, a third-party tracking tool might be able to track a user’s behavior across multiple devices, such as a mobile phone and a desktop computer, providing a more complete picture of their journey to purchase. This can be especially useful for e-commerce businesses that rely heavily on mobile traffic or have customers that frequently switch between devices.
In addition to providing more accurate data, third-party tracking software can also help e-commerce businesses to optimize their campaigns more effectively. This is because third-party tools often have more advanced optimization features, such as automated bidding algorithms and real-time campaign monitoring.
For example, a third-party tracking tool might be able to adjust bids in real-time based on factors like user behavior, weather conditions, or even stock market fluctuations. This can help e-commerce businesses to achieve better results and drive more revenue from their campaigns.
Another advantage of using third-party tracking software is that it can provide a competitive advantage for e-commerce businesses. By using more advanced tracking and optimization tools, businesses can gain insights into user behavior and campaign performance that their competitors may not have access to.
For example, a third-party tracking tool might be able to identify trends or patterns in user behavior that are unique to a particular e-commerce business. This information can then be used to optimize campaigns and drive more revenue, providing a competitive advantage over other businesses in the same market.
Finally, one of the biggest benefits to having a 3rd party tracking software is being able to see all the touch points an individual user makes across all platforms. This can help you identify inefficiencies in certain channels and which channels might be leading to faster conversions etc. You can see trends about if a customer comes in through email marketing, where they go next, how long it takes them to engage again and how they encounter you again.
3rd party tracking is immensely valuable and we recommend it to all of our clients, especially those in ecommerce.
Reach out to Murray Marketing Team for a free account audit or if you have any questions/ need recommendations on 3rd party tracking!