4 Ways Google Tag Manager Can Benefit Your Ecommerce Business

Irene Wanja Dec 13, 2022

Reading Time: 4 minutes

No matter what type of business you own, there’s no getting around the data-juggling act required for success. This is especially true for ecom store owners who know the importance of having a comprehensive understanding of their customers and website performance. They end up managing website analytics, product tracking, customer segmentation, and more!

To make this process easier, Google Tag Manager (GTM) offers an all-in-one solution that helps businesses track their data and make informed decisions. In this article, we’ll be taking a closer look at what GTM can do for your ecommerce store. 

Linking the ecommerce store to google analytics using google tag manager

What is Google Tag Manager (GTM)? 

First things first: Google Tag Manager is a free tool that simplifies the process of tracking and managing website tags (like on-page scripts) without having to edit code on the backend of the site. With GTM, you can add, update, or remove tags from your site quickly and easily. This eliminates the need for developers to manually update code every time you want to add a new tag or change existing ones. 

Google Analytics vs. Google Tag Manager

Google Analytics is a web analytics tool that helps you measure, monitor, and report on your website’s traffic, performance, and user engagement. It allows you to track user behavior, including the journey from page to page, what people searched for, where they came from (i.e., the source of their visit), how long they stayed on each page, etc. It also provides insights into the effectiveness of your campaigns by tracking how many visitors converted or took an action once they landed on your site. 

Google Tag Manager is a tag management system that allows you to manage all of your website tags (third-party tracking scripts) from one place. This includes tags from services like Facebook Pixel or AdWords conversion tracking code, as well as custom HTML tags for tracking events like button clicks or form submissions. With Google Tag Manager, you can easily add and remove tags without having to manually insert them into every page of your site. This makes it much easier for marketers to keep track of their tags and ensure everything is running correctly without having to rely on developers for help. 

Benefits of GTM for ecom stores

If you’re looking for ways to simplify your store’s data tracking process, GTM may be just the tool you need! Below are some of the key benefits you can expect if you choose to utilize it in your business: 

1. Improved tracking

Google Tag Manager is a powerful tool that helps online businesses fine-tune the way they track their user data. Not only can companies store and manage tracking codes with ease, but they can also regulate how and when those tags appear on their webpages. This makes it easier to measure performance of different optimization strategies, helping ensure data accuracy and improved insights into customer behavior. For example, GTM facilitates the set-up of event tracking and goals, providing unprecedented insight into your store’s customer journey. By understanding where users are clicking, engaging with content, or adding items to their carts, you can replicate successful practices and tailor marketing campaigns to best meet customer expectations. Additionally, you can track user activity and optimization performance metrics from one central platform. And because GTM allows you to quickly and easily add tags to your website without needing manual coding updates every time, it also improves your ability to accurately track data from user interactions with your site.

2. Simplified data collection

With GTM’s streamlined approach to tracking and managing data, collecting and organizing information on visitor behavior is easier. You can then use this information to better understand user preferences, and improve products and user experience accordingly to increase sales. It gathers data from all sources, including website visits, webpage destinations, clicks, and much more. The overall effort required to collect the data is lower and the accuracy of the data is increased when compared with manually maintaining tracking codes. GTM automates processes so that users don’t have to worry about things like incorrectly pasting a code and then having a distorted look at their data. With this technology, businesses can use their time more efficiently in other areas of growth while still obtaining valuable feedback through accurately collected data.

3. Increased efficiency 

There are many tools and moving pieces to keep track of when it comes to managing a website. Google Tag Manager simplifies the process, providing a quicker, easier way to maintain your online presence, so you can optimize user experience and lower maintenance time. Higher efficiency with tagging not only translates into better segmentation for data collection, it also gives businesses access to more accurate data, and ultimately, an edge in the market.

4. Better insights 

Whether you run an online or brick and mortar business, reliable data is essential for understanding customer preferences, success metrics, and more. Google Tag Manager provides a platform to link tags, which then help render aggregated data measurements related to website performance. This includes sales conversions, user interactions, content engagement, and more. The GTM dashboard provides an intuitive interface for ecommerce businesses to monitor relevant site data easily from one central location. The insights derived from these measurements promote deeper understanding of the user experience and website that can be leveraged to make smart decisions that benefit your business. With this tool’s powerful analytics, ecom business owners are better equipped than ever before with accurate guidelines on how to refine the quality of their online presence and consequently increase their revenue exponentially.


Google Tag Manager is an invaluable tool for ecom store owners looking to save time and get better insights into their customers’ shopping behaviors. With its streamlined approach to managing tags and collecting data, it simplifies the process while allowing access to accurate information that can be used to make the best business decisions possible. If you’re looking for an all-in-one solution for managing tags on your website, Google Tag Manager may be just what you need! If you’re not quite sure where to start with GTM, feel free to reach out to the BGS team. We’d love to set up a call to guide you in the right direction, so you can start leveraging this powerful tool in your ecom business as soon as possible!


About the author

Irene Wanja

Irene, a skilled Revenue Optimization Specialist for Build Grow Scale, combines an unparalleled focus on user research and a deep understanding of the ecommerce customer journey to orchestrate optimal shopping experiences. With an uncanny knack for detecting and addressing customer pain points through meticulous user testing, she utilizes tools such as moderated user tests, heatmaps, scrollmaps, and clickmaps to fast-track improvements in user experience and usability. Her keen eye for detail aids in swiftly spotting potential issues and implementing solutions, all while working closely with store owners and applying her intricate comprehension of user interactions. Passionate about software and technology, Irene immerses herself in enhancing her clients' business clarity, efficiency, and user satisfaction. Even though the value of user experience doesn't conform to a conventional numerical scale, the tangible outcomes of her work—improved user experience, amplified retention rates, and reduced customer support issues—are testaments to her prowess. Beyond her revenue optimization skills, Irene is a skilled writer and copywriter. She weaves her profound insights into engaging prose, crafting content that not only resonates with diverse audiences but also demystifies the complexities of user experience, consequently benefitting businesses worldwide.

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