eCommerce is a enormous industry that gives people the freedom of discovering, comparing, and purchasing products remotely. Although it seems natural to most of us, this kind of service would be very difficult without ‘Big Data’ and its computational power.
‘Big Data’ can help you to deduce valuable decisions out of massive volumes of seemingly unrelated information.
What is ‘Big Data’? It is a collection of data from various sources, often characterised by what’s become known as the 3V’s: Volume - Variety - Velocity. As it has developed, other V’s have been added to the descriptions of ‘Big Data’.
Amount of data from countless sources.
Types of data: structured, semi-structured and unstructured.
Speed at which ‘Big Data’ is created.
Degree to which ‘Big Data’ can be trusted.
Business value of the ‘Big Data’ collected.
Ways in which ‘Big Data’ can be used and configured.
eCommerce can be based on huge volumes of information which would be impossible to analyse without help from ‘Big Data’. Our amavat® IT experts know it’s a multi-level process that can give valuable insights into the world of online sales. Following the following principles of data analytics you too with the help of amavat® can handle your online business more efficiently, so why not put into practice and improve your sales results.
1. Shopper Analysis
‘Big Data’ can enable you to understand how people search and find products. You can get to know their location, age, interests, and dozens of other features that constitute a buyer persona. It can also explain sudden spikes in demand of your product/s and recent shopping trends, thus giving you input so you can build your sales and marketing strategy.
2. Personalized Experience
This goes hand-in-hand with ‘Consumer Analysis’. Modern customers expect tailor-made offers that match their personal preferences, so you require to pander them and adjust your product/s accordingly. Using ‘Big Data’ as a business tool, you can fulfil this need.
3. Customer Service
‘Big Data’ can easily give you the power to improve your customer service, which is a natural consequence of enhanced consumer analysis and personalisation. If you a running an eCommerce business, you can make use of business analytics to figure out the most frequent user complaints.
Using ‘Big Data’, you can be proactive and discovery solutions to remove common problems. Besides that, you could for example evaluate the work of each customer service agent, and learn what they do or do not know, if you are a larger organisation.
4. Flexible Pricing Policy
Giving you the ability to process and analyse large volumes of information, while also allowing you to create a flexible pricing policy. You could increase or decrease prices in real-time depending on current market conditions, supply and demand.
5. Supply Management
eCommerce businesses are find it very difficult to keep the optimal amount of stocks. As recently as a decade ago, it was almost impossible to exactly forecast customer requirements and then calculate all the elements that contribute to demand forecasting.
Yet, ‘Big Data’ changed the way forecasting works. Today, it is fairly simple to avoid out-of-stock situations while still keeping your supplies to the required minimum.
6. Secure Online Payments
Financial security and online payments have usually been the pain point of eCommerce. With its centralised system, ‘Big Data’ can significantly improve online security and makes card payments much safer. It does not mean online payments will be 100% safe, but the fact remains that ‘Big Data’ made eCommerce a lot safer.
7. Predictive Analytics
The last point on this list, but definitely is not the least important impact of ‘Big Data’ on eCommerce. On the contrary, companies that use this business intelligence tool cleverly can detect new trends much quicker than their passive competitors.
eCommerce as you can see is a very helpful tool for the very competitive eCommerce world.
In order for you to make it work though, you will require:
But the key is for you to operate within your circle of competence so that you avoid the pitfalls of ‘Big Data’ and use it as a powerful tool to grow your online business.
If you have any questions or queries, please do not hesitate to contact us.