Big data in e-commerce assists businesses in personalizing services, predicting trends, forecasting requirements, amongst other functionalities, to improve customer experience and increase sales.
In the digital age, the number smartphone users are on a rise. With such a hike, the market base for e-commerce portals is also increasing. The number of digital buyers is expected to rise from 58.3% in 2016 to around 65% in 2021. With an increase in digital consumers, organizations look to leverage technologies that can assist them in enhancing customer experience and increasing the number of customers retained. As modern-day companies hold enormous amounts of information, extracting actionable information from this data is crucial. Big data analytics helps companies in extracting information that can assist them in taking the right decisions. Big data in e-commerce holds the ability to support businesses in transforming their operations; here’s how:
1. Big data in e-commerce to personalize services
As a customer, everyone likes it when their retailer knows about their preferences and they don’t have to waste time in shortlisting services that they require. With big data analytics, companies can easily keep track of their customer’s browsing history. By doing so, companies can quickly analyze a customer’s preferences. Product promotions can be personalized with the assistance of advertisements or through emails sent out regularly to notify customers of personalized services.
2. Big data in e-commerce for predicting trends
Introducing trending services for the mass to avail is one of the factors can increase popularity of an online retail store. With the assistance of big data analytics, companies can analyze data arriving from social media and other forums where a particular product is trending and can also know the sentiments behind with the same. By using such information, enterprises determine what are the products that are trending and how they should move to ensure being up to the mark in the competition.
3. Big data in e-commerce for determining demand
Determining customer demand for certain products is vital as it assists in increasing sales and profits both. With data arriving from numerous sources, companies can easily keep track of which product is trending among customers and knowing the quantities required to avoid deadlocks. By using big data analytics, companies can keep track of the demand of customers. With such accurate demand forecast, determining the number of products to be ordered from a wholesaler becomes more comfortable and assures the organization that their customers will have the required product as and when required.
4. Big data in e-commerce for reducing fraud
Another barrier for an online retail organization to function efficiently is online fraud. By using big data analytics, organizations can have intuitive insights about locations where credit card frauds are frequent. Big data analytics informs organizations about locations where the cash-on-delivery method is experiencing a failure in payments. By using such crucial information, authorities can easily determine how they can avoid falling prey to such situations and avoid losses.
Big data analytics is proving beneficial for everyone; transforming the online retail sector is possible with the assistance of this technology. CTOs and CIOs should now focus on understanding how they can leverage this technology. Either they can train their employees to work on sophisticated big data software or they can hire experts who can assist them in extracting crucial insights from data.