Technology is changing rapidly, and so are shopping preferences.
With the onset of the pandemic, retailers selling online have witnessed a staggering amount of growth. With this growth, there popped a situation for businesses to contend with a massive amount of competition.
It’s known that 75% of online shoppers prefer brands that offer a personalized shopping experience. Sending a personalized message to a potential customer can increase conversion by 8%.
In this reality, imagine if you could predict what your customers are likely to buy and what price point you should be selling to maximize your profits?
Staying relevant in addition to a price war and positioning is only possible by using reliable data insights to predict industry developments. Businesses can expect superior data analytics, increased revenue, and the ability to compete more effectively in the industry using data warehousing services.
Ninety percent (90%) of all available data were created within the last two years.
According to reports, digital data will grow by 61% in 2025. In five years, 175 zettabytes of information would become available. For reference, one zettabyte is one followed by 21 zeros.
The E-commerce sector is facing many challenges such as dynamic pricing changes, maintaining IT Resources, determining E-Business applications, security of information assets, managing the customer experience, and time-consuming daily processes to track price changes of competitors.
To measure the success of e-commerce it is necessary to select the right KPIs (Sales conversion rate, website traffic, CLV, Customer Acquisition cost, etc) and then track/measure their corresponding metrics and set proper benchmarks.
Today, data analysis and visualization are among the fastest-growing fields. The early adopters of eCommerce analytics these days are the ones gaining an edge over the competition. Organizations lacking the in-house capability to perform data analysis can leverage the best IT outsourcing consulting services to make informed business decisions.
The need for data analytics for e-commerce
#1 Data personalization: Customers looking for a satisfying purchase are attracted to personalized advertising. In this case, big data can help e-commerce companies by allowing them to identify and inform customers by offering personalized content based on preferences, purchase history, and current trends. Customers may be enticed to buy more if they see additional products or things that complement what they have already purchased. The ability to monitor how much money you are investing is one of the main benefits of shopping cart search. Consumers are attracted to things that have been classified as trendy, as well as products that are offered at a discount.
#2 Personalized Customer Experience: The buying experience of customers is crucial in determining whether they will convert. Customers today have several options. Therefore, e-commerce businesses must try to improve their e-commerce experience to first attract and then retain customers, thereby increasing their revenue. In this scenario, data analytics can be extremely helpful as it helps in uncovering and interpreting consumer habits. Data analytics can be used to track consumers’ activities on a web page and thus identify at what stage they leave the site. It will be easier for retailers to determine what improvements they need to make to keep consumers hooked. If necessary.
#3 Prospective analysis: When determining what to promote and what not to do, e-commerce companies need to consider factors such as consumer needs and preferences. To achieve optimal conversions, businesses need to have what customers are asking for. It should be possible to predict consumer behavior to create these results. Today, the quality of e-commerce is measured not only by a company’s marketing capabilities but also by its ability to use analytics to predict what its customers will buy. Predictive analytics can also help businesses anticipate negative events and improve responsiveness.
#4 Proper Pricing Analysis: To stay competitive, businesses must strive to provide consumers with the latest offers and services to maximize conversions and attract new customers. In the realm of e-commerce, affordability is one of the most essential factors on a customer’s shopping list. With their pricing strategy, companies must constantly compete to provide the best relative value. It is impossible to change the price of hundreds of items continuously without data analysis, resulting in the loss of consumers to opponents. Most IT consulting and outsourcing companies offer data visualization services that allow companies to quickly absorb huge amounts of information. Retailers can use e-commerce data analytics to determine the optimal sales strategy, such as whether advertising rewards are acceptable and whether the value of the merchandise is higher or lower than expected.
Seventy-five (75%) of consumers make unplanned purchases because of a discount or a promotion. Likewise, 74% of American shoppers report deals as their top reason for buying a product.
#5 Effective Supply Chain Management: E-commerce businesses is built on a complex supply chain. They manage various merchants, wholesalers, warehouses, and other businesses, and they must efficiently manage deliveries, reservations, refunds, exchanges, and other responsibilities. Without effective supply chain management, a business cannot be successful in the long term. Companies are slowly turning to analytics to reconsider and reengineer their supply chain operations. The analysis of e-commerce data guarantees a management system that is much more reliable and competitive than the old systems.
If you feel the need to outsource data visualization consulting services or data warehousing services, be sure to compile a list of top outsourcing IT services companies. Do thorough research, set your goals and budget, then get to the deal. As big data analytics becomes accessible and more online businesses adopt it, it will soon become a requirement for all e-commerce businesses.