Even those who are relatively new to the e-commerce sector have likely heard of big data. This type of information has become crucial in terms of identifying trends, connecting with the right demographic, and streamlining in-house logistics. So, why are some organizations still hesitant to adopt such an approach? The main answer involves a failure to appreciate the discrete benefits of big data. This article discusses six undeniable advantages that this strategy can provide.
Competitive Pricing Models
In these competitive times, price is extremely important. Clients will naturally navigate to a seller who is offering a quality product at an amenable cost. Unfortunately, manually tracking the prices associated with competing firms can be laborious and confusing. The algorithmic nature of big data now allows businesses to quickly appreciate whether their existing pricing structure needs to be modified in accordance with industry trends.
Real-time price analysis is now easier than ever thanks to big data, provided your organization has the technical know-how to sort and analyze relevant datasets proficiently. E-commerce websites can use historical sales volume and pricing data to derive meaningful forecasts, advertise discounts, and offer limited-time offers to loyal customers, for example.
Providing Users with Personalized Experiences
E-commerce businesses always need to foster a rapport with their client base. Developing this type of connection was challenging in the past; often resulting in rather dull and generic marketing campaigns. As a result, customers may begin to look elsewhere for specific products and services.
Big data now allows online enterprises to better appreciate the buying habits of their customers. So, publicity and marketing campaigns have become much more targeted. This decidedly personalized approach likewise allows marketing experts to leverage other strategies such as:
- Product recommendations centered around personal preferences.
- Discounts are based on spending habits and budgets.
- Location-specific marketing campaigns.
- Automatic email updates.
These methods would have been quite difficult to employ in the past.
Higher Conversion Rates
As a result of the two benefits mentioned above, e-commerce firms that leverage the scope of big data tend to enjoy more robust (and predictable) conversion rates. After all, there is a profound difference between the number of visitors who visit a specific website when compared to those who decide to make a purchase. Big data allows businesses to analyze specific metrics such as page load times, click-through rates, site layout, and which sections are being frequented the most often. Thus, targeted changes can be made at the appropriate times.
Take your e-commerce website to the next level and convert more leads into sales by taking advantage of strategies such as search engine optimization (SEO) backed by data analytics.
Enhanced Management and Accountability
The logistics of e-commerce is another challenge. It is a daunting prospect to track multiple variables without the help of a centralized platform. Big data is often able to provide firms with the ability to proactively monitor all pertinent logistical concerns from within a single interface. Here are some of the major advantages attributed to such an approach:
- It is much easier to track important sales statistics.
- Pipeline management can be carried out in an efficient manner.
- Employees can be provided with multi-tiered access to important information.
- Data can be seamlessly shared across multiple in-house departments.
All of these will result in a well-oiled working environment and higher levels of customer satisfaction.
Predicting Future Market Trends
Where might a specific niche market behead? It can be nearly impossible to predict short-term industry trends and this is even more relevant when speaking of the long-term outlook. Big data can help to take the guesswork out of this equation. E-commerce firms are now able to better appreciate how to present statistics will impact the medium- to long-term markets. Algorithms will compile information from numerous sources such as broad analytics, social media posts, customer sentiment, and regional economics. So, the business in question is now provided with the ability to make changes at the right times as opposed to falling behind the competitive curve.
Forecasting future trends should never be done with a crystal ball, but rather with reliable and relevant data. Big data provides the perfect opportunity for businesses to leverage historical trends in order to make better, more sensible forecasts.
Fostering a Sense of Digital Trust
Digital trust is a final crucial metric to highlight. Customers need to know that their personal information is being handled properly. Big data can represent an invaluable tool. This strategy allows organizations to proactively monitor their security methods alongside other variables including (but not necessarily limited to):
- Employee accountability.
- The adherence to current GDPR guidelines.
- Monitoring supply chain concerns.
- Building a brand identity over time.
E-commerce firms that can fully embrace these metrics are always associated with greater degrees of reliability. Furthermore, e-commerce firms that leverage big data to their advantage stand to foster greater trust from their customers because there is an overall understanding that your operations are grounded in verifiable, pragmatic data analysis.
The concept of big data within the e-commerce sector is expected to become even more recognized in the coming years. There is no better time than the present to appreciate the benefits which have been outlined above.
This article was written by Milca Vojnic of Wisetek. Milca specializes in advising businesses on the importance of Data Destruction to remain compliant and avoid costly fines.