Online shoppers leave plenty of information about their preferences every time they visit your online store. This information is a result of a close interaction with your content and the process of making decisions online. Every new transaction or filter research adds more insights about your audiences and their shopping behavior.
The more information you receive, the less straightforward it becomes when organizing it – perceiving and understanding the big data in eCommerce is not an easy task. With the growth of online retailing, which generates tons of data every day, processing the data has become necessary. It can give you a competitive advantage over your closest rivals, and physical stores in particular.
No matter what you decide to do with the data about users, you have to recognize it as an undeniable force that makes decision-making easier. What exactly is big data in eCommerce?
Big data helps you to understand buyer behavior
The definition of big data marketing is large portions of data that can be used to get an idea of the most common trends in buyer behavior.
The number of online shoppers is increasing at an incredible rate, growing from 1.52 billion people in 2016 to 1.79 billion in 2017. These users generate an immense amount of data that is growing annually and is predicted to rise by 45 zettabytes.
Only a few slices of the big data pie are used to promote a business to gain more customers. Keyword research, following Google trends and marketing on social media are examples of how companies try to use big data and its potential. Which of the following choices is a way that big data and data science can help today’s marketer? How can you do the analysis more effectively? Let’s explore the ways in which big data analytics is used in retail.
What types of big data can we extract value from?
1. Big data boosts personalization
Shopping recommendations, special offers, flexible pricing, personalized newsletters, micro-targeted ads – all examples of practical uses for which big data in eCommerce can drive success to your business. But it can solely depend on how carefully big data is collected.
Big data helps segment customers into groups that have similar browsing patterns, purchase history or loyalty preferences. The right division will make it easy to target certain groups with personalized promotions and call-to-action messages.
2. Big data is a key element of customer service
It has always been critical to deliver excellent customer service to influence retention rates. That is where big data in eCommerce comes into play: it aims to detect the issues that you might have in one of the channels of customer support.
You can monitor average response time and the periods when customers are more active during the day. This helps to organize a cost-effective workflow, taking control of live chat, phone, and emails with more precision. Using the methods of customer analysis is the most effective application of big data: you can source the ideas directly from your sales.
3. Big data will make dynamic pricing a breeze
Overpriced products will make prospective customers stay away from your brand. In fact, the price is the most crucial factor that influences shoppers to buy. That is why the problem of price creation can be a decisive one.
An effective use of data analytics can complete the task of price comparison in moments, pulling the information from the web and applying it to your inventory. There are special platforms that take into consideration the demand for a given product, which, in turn, can be used to form an optimal price.
4. Big data helps to optimize the inventory and shipping
Why use big data to improve inventory and the supply process? Many online retailers already use the rewards of effective industry analysis to improve their eCommerce operations. Inadequate stock levels may affect your ability to compete with rivals: too low or too much inventory are the issues to combat at the right time.
Big data explains the optimal inventory level through preventative measures and predictive analysis. This is especially useful at seasonal peaks, when it is crucial to determine the necessary level of stock.
5. Big data boosts the security of payments
How is big data used in one of the most crucial spheres of business that affect the credibility of a brand – online payments? It integrates several payment functions into one centralized entity, making it easy for clients to make a payment. Big data also offers advanced analytics that can discover illegal transactions and detect fraud.
One can identify the most effective payment options that are united under one centralized hood. This helps to explore customer preferences and find out when it is the right time to launch the next upsell. Track the best and worst performing methods of online payments to improve your service.
Find success with big data
Big data uses its potential to find a place in any business, whether big or small. Even the smallest eCommerce stores can find the resources to implement this or that data model that will aggregate insightful information about customers, competitors, and operational processes.
Many experts predict that big data and its personalization engine will redefine the landscape of the eCommerce world, affecting shopping and taking it to a new level. It provides a scope of tools that can help you to maximize your revenue and succeed.