In the expanding world of e-commerce, "Big data" analytics has grown to become extremely beneficial in running an online business as well as enhancing the online consumer's experience and inspiring behavioral changes.
Have you experienced a moment where you search Google for a particular product or service, and it keeps showing up on your social media platforms? This is not an accident, but rather one of the results of big data in e-commerce marketing. Big data is collected through the following: Shopping carts, social media activity, transaction receipts, and geolocation services.
Big Data can be divided into three categories:
1) Transactional: Consumer behaviour data from online transactions are analyzed and used to improve the buying experience.
2) Social: Data collected from social activities such as likes, comments, tweets, uploaded videos and view counts. These can provide the eCommerce businesses consumer behaviours and interests.
3) Machine: Data collected from different equipments and sensors that track personal behaviors and patterns.
Ecommerce businesses use big data analytics to deeply understand their customers' behaviours during the shopping process. Big data allows the company to analyze its customer data, to custom-fit marketing campaigns to the preferences and interests of the customers. It also allows for the training of staff on customer service and finding ways to meet customer needs and satisfaction. The company can then better create in-demand products/services which their customers are interested in purchasing.
Big data clearly plays an important role in marketing online businesses , but this is especially so in the year 2020, where the e-commerce industry is skyrocketing. As such, big data becomes especially more relevant in driving ecommerce revenues. According to business wire.com , the global big data analytics in retail market was estimated at USD 3.45 billion in 2018. This market is expected to reach USD 10.94 billion by the end of 2024
Here are the main aspects of e-commerce that big data analytics can impact in 2020:
1) Improved personalized shopping experience
As mentioned earlier, big data analytics understand the interests of certain customers by analyzing the collected data from the customer views and reviews. For example, if the user browses a certain type of skincare products, they will be shown recommended skincare products and will see skincare ads on social media.
2) Enhanced cross-border sales
Businesses all over the world are transitioning into online businesses and big data helps in reaching out across the world. Based on products/services you're selling, big data can identify where your business can be in demand and competitive and decide which market is most suitable for you.
3) Personalized Marketing
Customers are more sophisticated nowadays with high expectations, hence marketing efforts should be more sophisticated as well. Customers lean toward businesses that care about them and big data has transformed digital marketing in order to deliver that feeling. For example, a customer who regular buys from your business, will have this preference identified through the use of big data, and may be sent notifications to let him/her about new products.
4) High-level customer service
Customers are key to the success of any business, and customer satisfaction makes them loyal to your services. Big data can help e-commerce businesses to provide high-quality customer service by sharing your product/services to the relevant audience and evaluating customer satisfaction through the use of several tools. Examples include the collection of ratings on the shipping service. In addition to that, big data can identify changes in consumer perception of a service so that e-commerce businesses can take advantage of this information to improve their business performance.
- Apache Storm
In recent years, big data has become familiar concept in the business sector and plays an important role in identifying the successfulness and the sustainability of any business. Therefore, every business leader should consider this aspect in building a business to track business success and ensure the future of the business.