According to IDC projections, the digital universe carries somewhere close to 40 zettabytes or 40 trillion GB of data, and e-commerce represents a large chunk of it, which includes consumers social media activity, geolocation services, web browser histories, abandoned online shopping carts, website visits and more.
So what exactly is “Big Data” and how is it going to help change our e-commerce platforms?
Bigdata is a term used to describe a collection of data that is huge in size and yet growing exponentially with time. Although the data collection process from consumers and their online activity is now fairly easy, the analyzing and applying of this data is what is highly advantageous to businesses in today’s age.
Through this data analysis, companies can understand their consumer's purchasing behaviors and tailor their marketing strategies to exact customer preferences, better their offerings and improve overall customer service experience. So through big data we can actually make future predications, forecast trends and understand our consumers behaviors.
Here are 3 ways big data can foster positive change in our businesses:
Improves Customer Service and Shopping Experiences: E-commerce platforms have tons of data that can help with predictive analytics which can predict future customer behavior. With all the data collected like time spent on website, clicks per page, shopping cart engagements and more, companies can create new strategies to customize marketing plans for their target audiences. This will retain customers, fix on site problems and lessen shopping cart abandonment.
Increased sales: Big data helps companies customize recommendations and coupons for their consumers according to their wants and needs, which leads to higher number of sales. Big data can also help remind customers about abandoned carts, promote appropriate coupons to the appropriate customers and more.
Customer Segmentation: Personalization, a big factor in determining consumer buying decisions today can be easily achieved through big data. The data collected gives companies opportunities to segment customers based on demographics, and each segment can be targeted differently to give customers a personalized experience. This could be done by customized discounts, new launches to particular target audiences etc.
Today, Big Data is every e-commerce businesses’ power tool and should be included into business plans to take full advantage of it. So have you incorporated it into your business yet?
Do comment down below and let us know your thoughts :)
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