- Ecommerce has revolutionised the way of doing business.
- With over 54% of millennials shopping online, the industry is believed to hit $4.5 trillion in 2021.
- Entwining Big Data with Ecommerce is not only the way of capturing the current market but also foreseeing the trend to stay ahead in the competition.
- Businesses using Predictive Analytics have 73% higher sales than those not using it.
- Ecommerce holds an advantage over traditional brick and mortar with the adroit collection and usage of data.
- The exponentially growing data is expected to be at a size of 44 Zeta bytes which equals 44 trillion gigabytes by the end of 2020!!
- Only less than 0.5% of the data is utilized for gaining insights and grow the business.
- Businesses got to adopt Big Data Analytics to improvise their strategies, optimize the processes and resources and above all have a better understanding of the customers!
- Many retailers either do not employ proper ways of data collection or do not use the acquired data effectively.
Here is a compilation of what Big Data can do to transform your e-tail business!
Trend & Demand Forecasting:
- Understanding customer behaviour is what the marketers yearn for!
- The algorithms can surf through social media and web for identifying the trend.
- Big Data is also comprised of historical sales data, buyer preference, and geo-location.
- With the help of sentimental analysis, the marketers can know how well their product is doing.
- Predictive analytics then simulates the data to find the possible outcomes of the future, to calculate the demand for a product, saving the cost of over-production or under-production!
- This also helps in strategizing your supply chain and reduce the delays according to the predicted volume, weather information, fleet position and even driver’s performance!
Optimization of Price :
- Online shoppers are always in search of better deals for products, making them jump onto various ECommerce platform.
- The key factor that makes customers switch from traditional shopping to online shopping is the dynamic pricing strategy!
- The capabilities of Big Data and Analytics are not limited to understanding customer behaviour.
- But also to identify the price the customers are willing to pay for a product by analysing factors such as Cost of Goods, Competitor Price and other variable costs.
- Customers are more likely to be satisfied when they get their desired product at personalized offers.
- This pricing varies for each customer according to their shopping habit and is the main way of boosting sales. Thanks to Big Data!
Improving Customer Experience:
- Gaining and retaining a huge base of loyal customers is not an easy task.
- Big Data and Analytics come to your rescue to enhance the ways of customer experience.
- With customer interaction data collected over multiple channels of engagement, information like most searched product, popular brands, shopping trends can be collected and analysed.
- This, in turn, gives insights such as:
- How customers engage with the brand and follow the trend?
- What factors causes repeated product purchase?
- At what point they are losing the customers?
- What leads to cart abandonment?
- Businesses can work over the insights acquired and pass it on to the employees, to enrich the overall experience and thus generating more sales.
Creating a Personalized Shopping:
- A study supports that, 87% of shoppers are driven to buy more when they experience personalized shopping.
- E-tailors have grasped this and with Big Data providing all the relevant behavioural and demographic information, they are able to:
- Automate product recommendations for every customer
- Create a dynamic pricing
- Send in offers and coupons through emails and SMS
- Display targeted ads according to their preferences
- Make a basket of most shopped products together by the customer
Safe and Secured Payment:
- Payment interface always poses a threat to both online customers and retailers.
- With many user-friendly methods of payment like wallets, online banking, card transactions, the more the vulnerability of details to hackers.
- Big Data allows the retailers to scan for potential threats and frauds, allowing them to implement methods of curtailing the risk of cyber-attack.
Let’s take a brief look at how the ECommerce giants are dealing with Big Data:
Amazon- Predicts the website traffic, product assortment & conversion rate to scale-up the process.
Walmart- Identifies purchase pattern and pairs a complimentary product to improve sales.
Alibaba- Reduces the risk of online credit management between lender and borrower.
Agoda- Assures the lowest price guarantee for room booking by matching the price with its competitors.
Netflix- Recommends movies and series based on the customer taste making them discover more from the long tail.
Each penny saved is a penny earned in Retail. Big Data is the game-changer here, making the businesses to take a strategically actionable leap, improvising the efficiency as well as customer retention.
Time to opt for the incorporation of Big Data and Analytics into your business!
We at DunRite Technologies, provide you with top-notch big data consulting at best market rates and uphold the highest security of data and confidentiality as per industry norms.