BIG DATA IN ECOMMERCE
For e-commerce businesses, a big chunk of their data will always be categorized into structured data. The primarily entails all the data that is mined and generated within the online store, for example, number of customers, number of sales and the products featured. This raises the question if importance of data analytics approach and tools.
Mining Data Using Popular Web Applications
It has become incredibly important to keep a bird’s eye view on your target audience and figure what segment of that audience searches for what product at your website. Sure, on the surface this really doesn’t sound like a big thing, but you will be surprised at how utterly significant it is to identify all indicators revealing all those factors that are piquing general public interest and curiosity. This is why it is important to incorporate the use of highly innovative and technologically advanced analytics software that can help provide you with insightful reports, which in turn will lead to making more data-driven business decisions.
Exto Analytics for example, has become the foremost tool for data segmentation and critical performance analysis for Magento based e-commerce businesses. Using the tool and features provided by the application you will be to analyze all your data in real-time. And the best part is, as soon as you install the program, all your previous data will be instantly ready to be analyzed and utilized.
The Application of Big Data in E-Commerce Businesses
There is no question that e-commerce organizations have indeed become one of the quickest adopters of the concept of Big Data and its profound evaluative and analytical importance. The e-commerce industry has been consistently, constantly and significantly changing with a majority of online organizations and companies functioning on pretty cutthroat margins.
HOW ARE E-COMMERCE COMPANIES UTILIZING WEB APPLICATIONS FOR BIG DATA
According to the statistical analysis of posted by Harvard Business Review, it has been identified that personalization can provide e-commerce businesses an increased return on investment that is 5 to 8 times more than what they spend on their marketing. This can help businesses enhance their sales by 10% every year. Through big data software and enhanced personalization, online companies can boost their conversion immensely. Gilt Groupe, one of the biggest names in e-commerce when it comes to flash sales, had been able to successfully harness the power of big data mining for personalization.
As a result, the organization dispatches more than 3,000 extremely precise emails on a regular basis to its 4 million customer base. The emails they send are strategically based on how their target audience reacted to their products, how they shopped for their product, what they liked, what they disliked, etc.
Exto Magento Analytics is a popular Big Data analysis tools that can help build comprehensive and in depth sales reports with detailed data charts and graphs. Using a powerful tool such as Exto, you will be able to pinpoint or detail sales in a specific time period, analyze product reports and categorize any way you want. For example, you can attribute your report using the size, color, manufacturer, etc. of the product.
Enhanced Customer Experience
Among numerous expenditures that are made by e-commerce companies, the biggest one undeniably is made on customer acquisition. Once a potential customer visits your site, your foremost priority will be to convert him immediately. However, the e-commerce industry has become quite competitive, so how can you stay ahead of the curve? The solution is the intelligent utilization of the best analytics software.
Big data analytics help e-commerce businesses identify the buying path for every customer – enhancing their experience by making their buying process as easy and hassle-free as possible. This is why so many online companies have started to analyze customer insights and data from customer support calls in order to enhance the process and shopping experience.
Supply Chain Management through Big Data Analytics
Online companies are profusely engaged in managing a plethora of components, which primarily include warehousing, shipping, delivery, vendors, returns, logistics, etc. Highly precise data analytics software helps to streamline this process helping businesses to make the supply chain process as seamless as possible. Several companies use big data applications to gather critical data and communicate that mined data to enforce a comprehensive range of supply chain logistics and condition making the process more efficient, effective and intelligent.
THE CHALLENGES ECOMMERCE BUSINESSES FACE WHEN DEALING WITH DATA
The Complexity of Managing Retail Data
For successful market competition, online retailers have to deal with mountains of data, everything from images, reviews to product promotions and pricing. This calls for mining and insurmountable data, which is turn stored in a variety of locations. Managing this much data is no easy task. With so much data and no time, things can get a bit dicey when you talk about leveraging everything to your advantage. With more than 70,000 SKUs, the number of attributes that can be utilized is as few as 48.
To gain a powerful edge against your competitors, you need to incorporate the power of critical big data analytics software and applications.
Inefficient and Minimal Product Searches
It is important to understand that the data for each product can drastically change on a daily basis. Why? Well, that is because you’re looking at new models, numerous additions and a lot of other options. This includes color of the product, its size, its packaging, etc. Databases from the last generation increasingly inhibit data storage, in turn making it hard for digital customers to search for exactly what they want at that very moment.
THE IMPORTANCE OF PROPER DATA ANALYTICS FOR ECOMMERCE
Big Data Helps Online Companies Deliver Something Unique and Valuable
Amazon incorporates the use of advanced software components to continuously change the pricing for every product. This means the online retail giant can effectively compare the prices of a plethora of products with its competitors and at the same time correct the prices of similar products. Did you know the prices of some products are altered more than ten times in a single day?
It is easy with the right data, which can only be cultivated via the use of adequate analytics software. This will allow your organization to use dynamic pricing, which means no organization can sell more products just because the price is low. Think about it.
You can Significantly Minimize Shopping Cart Discard and Abandonment Numbers
Known as cross-devices monitoring, the process can help you re-acquire data and minimize the rate at which potential users abandon their online shopping carts. According to a statistical analysis posted by eBay, it was identified that online shoppers normally use up to 5 devices to search for what they want to buy. Cross-devices tracking use big data to monitor and store all the different steps that make up the purchase journey and deliver exactly the content those users require before they even finalize a purchase.
THE BOTTOM LINE
A highly streamlined and seamlessly integratable Big Data analytics tool such as Exto Analytics can help you determine all the strong and weak points associated with your products, their categories and every attribute. The sales analytics feature of the software enables users to analyze total sales, which you can categorize per month, per week or per year.