With Black Friday ecommerce sales reaching $3.34 billion last year and an expected increase this year, it’s fair to say there’s never been a better time to get involved in the industry. What’s more, Astound Commerce found that almost half of all shoppers prefer to interact with technology than a sales associate when purchasing products. Whether you’re considering starting in ecommerce or you’re trying to make a name for yourself, you’ve certainly selected a great niche.
However, one obvious question comes with this; how do you stand out in the crowd? In truth, there are many things you could do but we want to discuss a hot topic of late and it comes in the form of big data analytics.
What is Big Data Analytics? – If you’ve never heard the term previously, the idea of ‘big data’ originates from the sheer volume of information we have available these days. Not only is the data pool so large, it’s also varied in terms of measuring correlations, customer preferences, market trends, and more. For many, they’re scared of the amount of data or simply overwhelmed and unsure of how to take advantage but we have important reasons as to why big data analytics will help your ecommerce company.
#1: Trends on Google – Ecommerce Services company – Comalytics.com mentioned that these days Google is the largest search engine on the internet so it plays a pivotal role in knowing the terms and phrases searched by consumers. With big data analytics, you can see the most popular terms within your niche, where they’re being searched most frequently, and exactly who is searching for these terms.
For those who have been in the business world for many years, you’ll know this information has always been important which is why customer surveys and ‘where did you hear about our service’ questionnaires have played their role in business history. Nowadays, the information is easily accessible and it allows ecommerce businesses to adapt their service, according to the data, almost instantly.
#2: Improved Customer Service – Later, we’ll investigate the importance of knowing what products consumers desire but first we want to consider customer service. Rather than looking for general patterns, big data analytics can be used to receive feedback from surveys. Instantly, you see what areas of your business are causing the most issues and a resolution can be created from here.
If only 1% of your customers are experiencing a small problem, this wouldn’t be considered a trend necessarily. However, it does mean that 1% of your customers walk away unhappy from their ecommerce transaction and this is never good news. Therefore, this shows the value of big data on both a general and individual level.
#3: Improved Product Range – If we look back to a time before technology, companies would create and develop products they thought COULD be successful. With the introduction of big data analytics, you can create and develop products you KNOW will be a hit. After assessing information from search engines, social media, and surveys, you can find the upcoming trends and have a product ready to take the world by storm.
Thanks to recent advances, you can filter the data according to your target market specifically. Whether it’s gender, age, income, or any other characteristic, you can assess the needs and wants for YOUR market and this has never been available before. As long as you use the results wisely, you can appeal to your target market time and time again while your ecommerce business excels.
#4: Personalized Offers – Based on previous searches and purchases, you can act on this behavior by offering a special deal designed just for them. Since it’ll appeal to their needs, the likelihood of acting upon the offer will increase and you should enjoy increased sales numbers.
#5: Fraud Prevention – Sadly, hackers and fraudsters are common these days and the technology and techniques they use are improving at the same rate as our own. With big data analytics, you can keep fraud to a minimum by assessing the states and countries where credit card fraud is common as well as the locations where cash-on-delivery schemes don’t work. With the volumes of data available, fraud can be controlled and your business can stay protected both now and into the future.
#6: Outperform the Competition – Finally, we started this guide by talking about the importance of shining brighter than the competition and, as we’ve seen today, big data analytics makes this possible. Over time, your product range is optimized as you remove the products that aren’t desired while introducing the ones your target market need. At the same time, you can personalize offers, prevent fraud, spot trends on Google, and improve your customer service.
With all of this in mind, big data analytics play a huge role in attract new customers to your ecommerce business and this is only set to grow as time goes on. Of course, you’ll need to use the information well but, if you do this, there’s no reason why you can’t grow faster than every single competitor around you!