eCommerce is one industry that has seen drastic growth over the past few years, thanks to its ability to allow buyers to explore a wide range of products and their makes and compare before making a decision. To do this right, eCommerce businesses have to deal with big data, which basically refers to big amounts of data that can be dug up to obtain important information and useful insights to make business decisions.
Big data can be of huge importance for eCommerce businesses, some of the notable ways being the following:
Product Research and Development
One of the many challenges that eCommerce businesses or brands face is developing new products, because not every product that you develop clicks with your customers, even those that look viable on paper. One of the main reasons for this failure could be insufficient market research and bad product positioning.
But, with big data, you will have sufficient reliable data in hand, with which you can obtain information like the type of products people like, the amount they are willing to pay for the same, and other pertinent details that can help you with your product research and development.
When it comes to making purchase decisions, most consumers accept that personalization plays a vital role, say when they receive personalized product suggestions, and the like. This is especially true with millennials, the crowd that is known to prefer online shopping more than others.
With big data, you will be able to obtain a 360-degree view of your customers, and make segments based on factors, such as age, gender, social media presence, location, etc. This then enables you to send out emails with personalized offers or discounts, develop products that attract a specific customer base, implement different marketing strategies for different customer segments, and more, all of which will help your eCommerce business grow.
Since big data gives you access to all the finer details, it thereby helps you set the pricing of your products based on individual customer preferences. This pricing strategy, one that is backed by solid data, can increase your business margins to a certain extent, even in the short term.
Easy and Safe Online Payments
The ease and security of online payments has always been the Achilles heel of eCommerce websites, and this concern has only increased with the increased use of mobile platforms by customers for making their purchases. With big data, you can have all the different payment options in a centralized platform, thereby making the process effortless for your customers.
On the security front, big data can help you identify fraudulent activities, suspicious transactions, and any other threats, and gives you the ability to react to the same in an instant, thereby preventing such activities and making online transactions secure for your customers.
Future Trends Prediction
Big data enables you to understand your business operations in a much better way, which is inclusive of your sales, inventory, supply chain, demand forecast, and pricing. In fact, this happens to be one of the best ways to predict future trends, even faster than your competitors, giving you an edge over your competition.
This is done by analyzing the browsing behavior of your customers, social media trends, etc., which is then used to predict the next big trend in your industry. As a result, you get to be proactive in developing and marketing products to match the trend, and take your business to the next level.
Improved Customer Service
Without a doubt, proper customer service is key to the success of any eCommerce business, and big data can help you improve your customer service as well. You can use a big data analytics tool to find frequent complaints made by customers, and do the necessary to eliminate the issue, thus delivering better customer experience.
This proactive approach of identifying and eliminating issues will keep your customers happy and satisfied, leading them to spend more on your eCommerce website.
Any eCommerce business owner will have to deal with loads and loads of information that has to be analyzed for better and efficient business management, and the use of big data is essential for the same. Using a big data analytics tool would be the best way to go about it.