In today’s business landscape, the significance of data matters a lot. Organizations across industries are well aware of the fact that data is a new currency and to process and analyze it, they are increasingly adopting big data. It has the potential to assess the ocean of data in order to reveal concealed patterns, correlations and other insights. In e-commerce, big data takes center stage as the sector is continuously increasing and embracing digital technologies to drive better customer experience.
E-commerce businesses gain the most benefits from big data as they glean enormous information during day-to-day operations. Most big players know the value of this information and offer customers a wide range of preferences while shopping on their site. These customer-centric preferences are all generated by big data analytics, enabling companies to make better decisions.
Big data has greater impacts on e-commerce, keeping the companies to remain competitive and bringing the industry to the next level.
Here are some ways of how this technology is impacting e-commerce.
Enhanced Customer Service
Understanding customers’ shopping behaviors and their entire journey with a brand play a pivotal role in delivering effective customer service. And big data here can be helpful as it analyses and monitors every click and purchases from entry to exit. With big data, it is possible to compare the experiences of those visitors who became customers with those who didn’t. This can extract certain patterns that can improve conversion rates as well as assist businesses to forge lasting relationships with returning customers.
Personalized Offers and Recommendations
E-commerce companies pour huge capital to lure new customers to their websites and enhance their return on investment. This is where they can embark on campaigns, referral programs and coupons as key triggers to attract new traffic to their websites. They can also make use of recommender systems to create recommendations autonomously for individual users based on past purchases and searches, and on the behavior of other users. This all will be done by using big data analytics which extracts useful insights from a buyer’s search history and his/her activities on social media and other channels.
Automating tedious and repetitive tasks not only saves human resources, but also improves the customer experience. Using chatbots for customer service, for instance, can improve accuracy and response time. As companies utilize an automation tool, it collects a massive amount of data regarding their customers, including their search history, likes and dislikes, how much time they are spending on a site and more. This is where big data analytics comes into the scenarios extracting meaningful insights, creating not only better customer experience, but also improving existing products or services.
Online retail stores can garner huge popularity by introducing trending services for the mass. And by leveraging big data analytics, they can assess data arriving from their websites, social media and other platforms where a particular product is trending. Even they can identify the sentiments behind trending products by using this solution. Moreover, enterprises can determine what are the products that are trending and how they should ensure being up to the mark in the competition by using such information.