Data has become paramount to businesses. The amount of data being created and consumed on various platforms is constantly increasing. As data has taken such an importance role in the future of businesses, companies around the world are focussing large investments in creating software and hardware for Big Data Analytics.
Due to the rising prominence of data in the corporate sector, new fields like Deep Learning and Artificial Intelligence (AI) have emerged as a disruptive trend in technology.
Data is not without its challenges. It is expected that Big Data will continuously create new opportunities for marketers.
Let us highlight through this article, how businesses in the eCommerce industry are effectively utilizing data sets to redefine marketing and enhance customer experiences.
Big Data is rapidly changing the operational dynamics of eCommerce stores. With easy access to big data and several analytics solutions, online eCommerce retailers are able to create enhanced shopping experiences that are more personalised and customer friendly. This ultimately boosts customer satisfaction and increases sales.
Big Data in Numbers
Big Data makes a huge difference to sales and marketing. Large amounts of data brings immense and helps in understanding customer habits. According to a research:
- 46% of the world is online, i.e. 3.4 billion people.
- In 1 second, there are
- 55,000 Google searches
- 2,000 calls made on Skype
- 125,000 YouTube videos viewed
- 6,000 tweets
- 521,000 Facebook messages
- 2.5 million e-mails sent
It is not surprising that the volume of data that is being made available to online audiences is growing at an extremely rapid pace. Hence, it is essential that businesses make the most of the big data revolution to achieve success.
According to eMarketer, retail eCommerce sales touched a mind-boggling $1.915 trillion in 2016, making up 8.7% of total global retail spending.
Sales are poised to increase to $4.058 trillion in 2020 which will make up 14.6% of total retail spending for that year.
Active Investments in Big Data is Driving eCommerce
Several eCommerce companies and retailers are actively investing in Big Data. The sales of Big Data products and services are expected to increase at a CAGR of 23.1% through 2019.
Challenges Faced by eCommerce Retailers
Like every aspect of business, there are various stumbling blocks that eCommerce retailers are facing.
- 51% of retailers are unable to access data, which does not allow them to accurately measure marketing ROI
- 42% of retailers do not have the required technology and resources to link customer data
- 39% of retailers do not collect and store data regularly
- 29% of retailers have very limited amounts of customer data
- 45% of retailers fail to use data effectively for personalised marketing communications
How Businesses Can Productively Use Big Data in eCommerce
Analysts and businesses must attempt to use available data to identify what is causing interest in the market. They must use trend forecasting algorithms to analyze data from social media sources and web browsing habits to achieve this.
Analysts must closely analyze ad-buying data to get an idea of what marketing teams in various businesses are promoting from time to time.
Marketers should use sentiment analysis to evaluate products and find out the context – positive or negative – in which these products are being discussed on different online platforms. This type of analysis can help businesses predict future top-selling products in different sales categories.
Predict Demand Trends
As it is expensive to keep inventory on shelves, there is a growing need for accurate demand forecasting. This will enable eCommerce businesses to predict demand and supply trends at pivotal periods of the year.
Create Personalised Stores To Boost Customer Engagement
eCommerce businesses must harness the potential of personalised experiences and strive towards boosting customer engagement. Big Data can be leveraged effectively to make automated recommendations about various products and solutions customers might be interested in, or find relevant to their needs.
Balance pricing of products
Using Big Data sources, retailers can effectively identify optimal prices for various products after analysing transactions, competitors and other related variables. These pricing patterns and actionable insights gained from analysis will prove crucial to put eCommerce businesses on the right track to recording profits.
Customer Service is Key to Success
eCommerce businesses are increasing relying on Big Data to shape the future and success of their operations. A key element that can define the success of eCommerce businesses is customer service. Organisations must attempt to gain a well-rounded understanding of their customers by analysing online and offline interactions and through post-sales feedback. This will provide customers with a seamless and interactive experience on the eCommerce platform.
In the eCommerce ecosystem, a major stumbling block is cart abandonment. A more personalised eCommerce experience for potential customers will go a long way in preventing or minimising the possibility of cart abandonment. A customer abandoning the cart mid-way through the shopping experience translates to a lost customer and therefore reduced sales. It is estimated that $3.38 trillion is lost in sales profits as a result of cart abandonment.
The Last Word
Ultimately, Big Data is going to play a pivotal role in the retail and eCommerce domains. An increasing number of eCommerce businesses and retailers are harnessing the potential of targeted analytics in real-time to gain enhanced insights that can be acted upon, with the aim to offer superior customer experiences.
In the field of eCommerce and retail, sales are critical in deciding the success or failure of a venture. The application of Big Data Analytics in the sector is effectively paving the way for businesses to make the most of the data resources at their disposal.