How Is ANALYTICS Revolutionizing The E-commerce Industry?

Data is everywhere.

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It is very safe to assume that as the world of e-commerce has evolved and revolves around consumer behaviour that is again continuously evolving, so does the data that is to be processed. The future of e-commerce is now being revolutionized by data analytics.

The advantages of data analytics technology has already been articulated as well as integrated into their solutions by an ever growing number of eCommerce companies. As a forum between buyers and sellers, such businesses aim to provide a great user experience via their website.

However, one has to depend on analytics for delving into the data and in making sense of it, in order to get noticed in this sea of ever-growing competition. The e-commerce industry thrives mainly by satisfying its consumers with the required goods and services, and hence, knowing what exactly the consumers want is crucial. Analytics assesses business data and offers relevant insights into the processes that are necessary for optimizing these products and services and for maximizing profit.

How much of a position in e-commerce can big data play? Experts estimate that by 2025, e-commerce companies will be spending $6.2 billion on big data. Over a seven-year period, this is a 150 percent raise.

To make accurate forecasts of future events using advanced analytics science, predictive analytics is used to derive information from existing data sets. Simulation, machine learning, data mining, statistical algorithms, etc. are the primary methods used in artificial intelligence. With a high degree of reliability, the algorithms used will create a prediction of what might happen in the near future.

Big data analysis is used by e-commerce firms as a way to understand their consumers and their shopping habits better. The data they collect and analyze enables them to ‘custom-fit’ all their marketing efforts to their clients’ unique tastes, train employees on personalized customer service techniques for meeting the needs of their clients, and produce goods that their clients actually want to purchase.

It is a work all in itself to be an e-commerce business owner seeking to keep up with their clients’ ever-changing patterns and behaviors. The explanation alone is why so many owners of e-commerce companies turn to places such as Shopify, where they can go to the marketplace and even recruit industry professionals who specifically have e-commerce marketing expertise.

In 2018, global retail Big Data analytics was estimated at $3.45 billion, according to businesswire.com. The market is projected to hit 10.94 billion by the end of 2024. Because of the e-commerce boom and the growth in online shopping, retailers are making efficient efforts to remain relevant and competitive in their market using big data.

Let’s dig deeper into the significant influence that big data has on Ecommerce marketing.

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Personalized Consumer Experience

When it comes to providing a more customized shopping experience to consumers, the e-commerce firms are leaps and bounds ahead of the brick-and-mortar stores. Sure, it’s good to have a greeter in front of a shop, but all too often, they can also be a bit of a nuisance.

E-commerce firms have a plethora of quantitative analytical tools that provide them with a deeper understanding of the clients’ current and future habits.

Data scientists are doing even more research now to identify new data sources to create a more personalized shopping experience for consumers. Text analytics, fresh on the horizon, is one of the latest sources of data that is being used in several organizations.

This is a collection of data that can take information from what the customers say and use it as an improvement tool to give the customers what they exactly want, by evaluating the texts in the feedback on company websites to reviews on third-party pages.

Excellent customer service is always appreciated by customers so much so that they are willing to pay a premium for it. And the perception of customers is now more relevant than your product or your price.

What makes a customer experience great? Have your customers put up enquires! Most want a self-serve system that helps them to discover all the data they need to make a buying decision. Ensure that the consumers can access and even identify their own user roles through their account details (such as orders).

Seeking the Right Channels of Contacts

Using the best channels available, predictive analytics will help you meet the target prospects. Demographic data such as age, gender, income, family, location are collected along with useful past events such as opened emails, clicked advertisements, unbought items in the cart, etc. This information is then fed into predictive algorithms based on AI to determine the best way to attract and retain consumers.

Data analytics also helps to configure landing pages to draw the website to the targeted clients. A one-for-all prototype was used in the conventional way of attracting clients, but now e-commerce companies deliver personalized landing pages and win clients by introducing mighty deals, discounts, and other offers. Analytics is a must-have method for designing such successful techniques.

Fraud Detection and Removal

We have heard of incidents where empty delivery boxes are delivered to the customers for their orders or even those containing garbage. Although e-commerce businesses have little to do with these cases of fraud, they have to bear the blame and pay for it. Moreover, often the buyers even make false allegations of fraud. Previously, businesses used to treat such cases manually, but now fraud can be identified and prevented by examining browsing habits, purchase patterns, and payment methods.

International Sales Causing more Revenue

People around the world enjoy shopping, and Big Data has made it possible for e-commerce firms to reach out to the neighbouring countries even more. Big data will tell you where your products are competitive or special, depending on the products you are selling, and you can start selling in that market.

You only need to ensure that you find the goods for those geographic areas. This also means making language choices, ensuring that the prices and the sizes are all translated.

Fulfilling Expectation of Sophisticated Customers

Long gone are the days where emails addressing you as “Dear Valued Customer” could get away… more so when you are a loyal customer of that specific store. We as consumers are living in this digital age of sophistication and high standards, and this means that the marketing efforts also needs to be cultivated.

In order to make a consumer feel like a specific store really cares about his or her taste, desire, and expectation, is where Big Data comes to the aid of digital marketing. For instance, if you have a client who only buys wallets from your web store; when new inventories or stocks of wallets arrive, you may want to send him an email but sending him an email about something like shoes could make him delete that email altogether.

Conclusion

There is a great deal of value that predictive analytics brings to companies that run on online platforms. By putting forth customized deals and ‘magically’ displaying the items that they were googling a few days before, consumers may also benefit from these predictive analytics. You may take some time to choose the correct solution for your eCommerce store. However, you need to decide what experience you want to deliver to your customers and what technologies would make it happen.

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