Enhancing Digital Business Performance: The Role of User Journey Analytics in Conversion Rate Optimization for Luxury E-Commerce

Digital transformation plays a crucial role in reforming industries in adapting their business operations to the continuously changing advancements in technology, this being particularly fundamental in defining the growth trajectory of the e-commerce industry. Since its introduction, e-commerce platforms have seen exponential growth and have therefore affected different areas of the customer journey. Within the luxury industry, the need for brands to adapt and offer top-tier immersive digital experiences are not limited to only functional competencies but also invoking particular emotions throughout this purchase journey. This thesis works towards exploring the role User Journey Analytics plays in Conversion Rate Optimization (CRO), specifically how it influences and impacts this, focusing on identifying how it can effectively contribute to enhancing digital business performance within the luxury e-commerce sector. Drawing on the author’s experience as a Digital Analytics Intern within Gucci's Global Digital Business Performance team, this research provides practical context for the central themes. Overall, CRO emphasizes the systematic enhancement of user experiences on digital platforms to boost conversion rates, while user journey analytics provides the necessary data-driven insights to understand and map consumer behavior across digital touchpoints. Gucci’s CRO vision, “To create a seamless, data-driven customer journey that maximizes user engagement, enhances the shopping experience, and drives revenue growth through continuous optimization.", emphasizes the findings that user journey analytics provides essential granular insights towards user behaviors, which then informs the targeted improvements made through CRO strategies. By giving emphasis to data-driven CRO activities, luxury digital businesses can effectively maximize revenue while also improving customer satisfaction to remain competitive within the industry.