You may have seen the hashtag #BigData floating around on Twitter, clicked on it and checked out a few articles related to it. More often than not, you think Big Data is a pretty cool concept but you’re not entirely sure how it could possibly relate to your business. Think again. Big Data, regardless of its hype in recent months, is here to stay — and should be a concern for every business whether big or small. In fact, companies doing a majority of their businesses online should have this pertinent issue on the front of their minds. In this article, we explore what big data means to eCommerce companies and what they can do to maximize the potential of Big Data.
With more data collected from customers through various touch points such as loyalty programs, visitor browsing patterns, and past purchase behavior, companies can process this information to carry out customer segmentation and thus push out personalized content and promotions.
2. Dynamic pricing/offers
A relatively accurate profile can be created for every customer after collecting and processing data. This customer profile will thus offer insights as to what price would re-engage the customer and persuade him to make another purchase. Note that this has proven the most effective for customer retention strategies. This would also help expedite the process of deciding whether a $10 off or 20% discount would work the best on any particular customer.
3. Customer service
68% of online visitors leave because of poor customer service, so improving this aspect is critical in increasing sales. Big Data can help in coordinating the various communication channels, including phone calls, emails, or live chat features. Understanding which issues customers are concerned with, or identifying time periods where customer support is most needed can also help companies best allocate resources more efficiently. Any customer conflict can thus be resolved more effectively within a shorter period of time.
4. Supply chain management
Any eCommerce company knows that transparent visibility and careful management of its supply chain process are important. Big Data allows for retailers to determine patterns which can be useful to forecast any potential hiccups and disruptions to the process, and thus quickly act on preventative measures. For instance, any changes in warehousing or shipping updates can be captured real-time and communicated to the retailer immediately.
5. Predictive Analytics
Big Data allows you to derive a more in-depth picture of the different channels in your business, including sales, and inventory. Knowing how to forecast gives you the added flexibility in deciding the next steps of your business operations.