The internet has created a platform where data is generated by the second. This could be by the use of various social media platforms, query searches, sent email, online purchases and many other ways. There is so much information that we give off to the internet every day by means of our choice of search and uploads. These information can be applied in various ways, most especially ecommerce. Searches and online purchases often explain human behavior. Large corporations such as Google, IBM, Amazon, Facebook, and the likes are investing heavily on big data as this is a way to understand the needs of their users.
Big data is a formidable ally which can be manipulated to strategize and develop market plans for businesses. Ecommerce is one of the platforms that have greatly benefitted from the use of big data. The application of big data is endless; it works hand in hand with ecommerce especially when it comes to marketing. It is no news that ecommerce marketing campaigns are run on various social media platforms. Imagine the amount of human data generated from social media sites like per second and the data just keeps growing. Big data has greatly contributed to sales and yet some businesses are yet to even know what the term big data means. Here are various applications of big data in your ecommerce business;
Predicting trends is one major advantage of big data in ecommerce. The forecasting of future events based on present shopping habits and choices. Analysis and statistics compile information on what is creating a buzz in the market, what product is being discussed, the categories of people interested in certain products or services, analysis on the top sellers and top buyers. All these information make up a data base or a pool of knowledge that can lead to algorithmic predictions of the future of the business.
Most competitors in ecommerce change prices regularly in order to create better deals for their customers. These frequent changes are made from data gathered on other competitor sites from transactions and other variables, these enable them make business decisions to stay ahead of competitions offering the best price. Big companies such as walmart and Amazon utilize big data in tracking millions of purchases in order to identify patterns that lead to higher profits.
Accurate demand forecast
When historical data is used to assess shifts in product demands especially during certain seasons such as Christmas, and other festive holidays, it is most likely to yield accurate details of product demand. Analytics and statistics are employed to determine even as much as public reactions to brands, this creates a pattern in different locations so that business owners can accurately forecast what the level of demands would be in certain areas. This is a powerful tool that helps to redirect marketing strategies. Forecast is one key thing every business should be able to do especially at the start-up point. Forecast is what drives the direction of the business and the level of effort and strategies to employ. Big data gives a close and accurate forecast using human behavior.
Many retailers are working tirelessly to rise to challenges in competing with giants such as Amazon who has made huge successes in personalized ecommerce. Personalized ecommerce, with the use of big data has brought about great customer experiences which in turn lead to more conversions. Sales tend to double when you use automated recommendations to influence potential buyers about products.
Improve customer service
Big data has been highly helpful in customer service. It allows businesses to structure their services to target specific demographics, it compiles transaction and engagement data from online and offline interactions with customers, also from social media trends and purchases. These culminate into a design that is geared towards giving customers the most helpful advice and counseling, which automatically leads to closed deals.
Less cart Abandonment
There is a high percentage of cart abandonment which should have been converted. Big data allows retailers to view statistics and possible reasons and solutions through more engagements with clients to create a need for last minute conversions. With big data, ecommerce can witness an increase in revenue.