How is Data Analytics Shaping E-commerce?
Data Analytics is the advanced technique of dealing with a large amount of unstructured data also known as Big Data. Its importance was first understood when industries realized that the data they’re storing can be used to improve the business and customer service.
E-commerce was probably one of the foremost industries of today, which tapped into using Data Analytics since the personalized service and better prices were the only way they could pull customers away from brick and mortar stores to shop online. And how successful this has been can be understood from the rise of giant companies like Amazon, Flip kart, Alibaba etc.
How Data Analytics is helping E-commerce?
a. Enhancement of Shopping Pattern: In an off-line store, customers come, shop and go, and there’s nothing to draw any pattern of the customers’ choices. But on an e-commerce site, this data is stored and companies can track what each and every customer is buying or looking for. This helps companies in multiple ways. First, they can recommend related products the next time a customer visits the site. They can send offers and discount thorough emails and inbound marketing. They can also draw many other patterns of when the customers are doing most of the shopping and what they’re saying about a product etc.
b. Effective Customer Service: The only reason why the online shopping industry has grown so big is the customer service they provide. They make the customers feel like they’re winning while doing shopping. According to the surveys, almost every e-commerce site agrees that they can provide better customer service by using data analytics. It helps the companies in detecting major issues and with the help of predictive analysis, they can figure out a solution.
c. Effective Pricing: If you have been using online shopping regularly, then you must have noticed that their prices change dramatically. It’s like the prices of airline tickets. Prices are devised according to the risks and potentials of the products, and of course, it is done with the help of Data Analytics.
d. Predicting Future Plans: Predictive analysis and Prescriptive analysis are the most important facets of Data Analytics, and e-commerce websites are benefiting from both of them. Using the massive amount of data being generated every day, the sites can make acute predictions about the demand, supply chain, prices, traffic etc and prepare them accordingly to earn the most profits.
e. Micro Moments: This is a very new trend in the e-commerce industry and it focuses on what the customers are discussing about the products. It is actually analogous to mining the text data through the advanced Data Analytics tools, and based on the collected data, companies can understand the customers’ behaviors and shopping patterns.
f. Safe and Easy Payments: The number of online transactions in on the rise, and the e-commerce industry has been the most vulnerable ground for fraudulent activities. Again, with the help of Data Analytics, companies can detect suspicious activities that may lead to frauds and can take the required actions in advance.
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There are 12-24 million e-commerce websites in the world, and they are changing the way we do the shopping. If you want to be one of the precursors of this revolution, then Data Analytics can be your gateway. Enroll in this Data Analytics course in India today and give your career a boost.