Are you on e-commerce retailer still in the dark about the data available you and how you can use the data to boost sales and find new opportunities? Are you unable to access the right data and consequently unable to correctly measure your marketing ROI? Are you unable to link all the individual customer data together because of lack of resources or the right technology?
If you answered ‘yes’ to all or some of the questions above, you are in luck. The widespread use of social media apps like Facebook, Twitter, Facebook, and WhatsApp, as well as the rise in social media groups and pages, is an indication of the fact that e-commerce is a huge game changer for businesses. It is the one thing that could boost your sales this year. In this article, we look at everything you need to know about big data and how you can leverage it for the success of your online store.
But first, what is big data?
Big data refers to large datasets stored and analyzed using the latest technologies to offer meaningful insights into your business, and also to guide your decisions. This brings us to e-commerce analytics, which refers to the processes involved in the collection and the analysis of online activities on your app or site. So, it’s clear that you could use big data to scale your e-commerce business.
It’s also important to understand big data analytics – these are the processes involved in the examination, analysis, and uncovering of the hidden data patterns, also from big data. Thanks to big data analytics, you obtain pieces of information like market trends or customer preferences.
But, before we look at how big data will help your e-commerce business, do you have the right or any data? Do you collect/ store data? Because you must have data. Many retailers fail in business because of lack of data, but you cannot be in that category today. Besides knowing the importance of data, you also have access to the best of backup disaster recovery tools should anything happen to you. Companies like Propel Technology could help, but you also need to protect your data at all costs.
Now then, how can you use Big Data in e-commerce?
1. Provision of a personalized user experience
If properly utilized, your customers and site visitors can now develop a positive relationship with your brand. By analyzing the products visitors have purchased or searched for in the past, it’s easier for you to recommend items appropriately. Big Data allows you to track the activity of your site visitors, allowing you to personalize your recommendations. Big data is that thing that makes everyone on the internet or social media wonder if the internet can read minds.
2. Prediction of trends
Like your competitors, you want to know about the next best-selling product, and you want to find this information before your competitors. Thanks to big data, you can find this information. Big Data Analytics involves the use of trend forecasting algorithms which eliminate the guesswork out of predicting the next big trend. These algorithms comb for data from your audience’s social media posts and their browsing habits and lead you to the next best thing.
There also is the analysis of ad-buying data which guides you to find out what the marketing departments in your industry are pushing for. Predictive analysis of trends also involves sentiment analysis that determines the context in which a product is being discussed online and whether they are positive or negative.
3. Price optimization
Thanks to big data, you can easily identify the best prices for your goods – you do this easily by tracking conversations and specifics on transactions, cost of goods, and your competitors, among other variables. Also, big data allows tracking of the rise or fall of demand with regards to pricing.
4. Forecasting of demand
You don’t want to stock more of an item as its season runs out. Big data helps you navigate this challenge by using your historical data. Inventory is expensive, and you need accurate demand forecasting.
5. Optimization of customer services
Thanks to data collected from social media, you will have a full view of your customers’ opinions, preferences, and needs.
6. More sales
By offering a more personalized shopping experience, you reduce the abandonment rate at the cart by learning more about your customers and offering options that best fit their needs.
Therefore, it’s an undeniable fact that big data is a huge game changer in e-commerce. Used appropriately, this technology helps in driving more strategic action, and it enhances customer experiences.