This technology is being extensively used by companies to understand customer behavioral patterns to offer better services. For instance, recently, Flipkart revealed that there were more than 75 million registered users on its platform. What’s the goal of mining such huge data? Bridging the division of user experience between online and offline shopping.
To understand how big data is transforming e-commerce, here’s a look at some of its applications:
Evolving Customer Services
Big data not only utilizes data derived from spending patterns and transactions but also from complaints and issues raised by individual customers. Big data tools not only identify and correct issues mentioned on e-commerce websites and smartphone applications, but also on social media platforms.
The Power To Predict
Customers expect a lot from e-commerce websites, and these expectations aren’t necessarily put up under the comment sections of every enterprise. This is where Big data swoops in and collects data from other sources, such as surveys, social media platforms, and forums. Businesses can then use this data to work on customers’ expectations.
Staying Ahead Of The Game
Big data comes handy when you want to gain an edge over your competitors. It helps with dynamic pricing wherein you gauge the price of a commodity on your competitor’s portal, product sales, and customer behavior pattern.
Customer acquisition and retention are two parameters that define the success of an e-commerce retailer. Big data helps you understand customer spending patterns, which can help you pitch customized offers to both old and new customers.
Contrary to what skeptics might believe, big data is here to stay. With businesses taking their services online, we, at Intelligence Node help businesses make smart decisions by giving them the real-time data they need.
Using Data To Create A Better Experience
Data impacts every aspect of the e-commerce landscape. At ThirdLove, our data affects how we develop products, create the customer journey, and ensure that our customers have a great experience. Everything revolves around that.
Sometimes women ask me how we’re able to find them the right bra size using the Fit Finder on our website. With around six million women going through it, we’ve got quite a bit of data to help find the right size.
And that’s where the power of big data really lies for e-commerce—it creates a better experience. For example, we’ve collected approximately 75 million data points just from our Fit Finder quiz. We use that data to influence nearly every aspect of our business. Each woman who takes the quiz adds something to it and makes our recommendations smarter.
E-commerce companies all have massive amounts of data at their disposal, and it’s changing how they interact with customers.
Think of when someone walks into a brick and mortar store. The sales associate on the floor doesn’t know who they are or what they need. They don’t know if that customer is primed to buy, or if they’re going to three more stores after this one to compare prices. It’s very difficult for them to know all of that.
But these types of things are apparent when customers shop online. If they allow cookies, then the company knows where they came from. They know if the customer saw an ad on Facebook or clicked on an email offer. They know if that customer has visited the site before, put something in their cart, and then backed out. It’s all available.
This type of tracking allows e-commerce companies to target consumers who are of a certain age, who have a certain income, who like these types of products. They don’t engage every single person who might wander into the store or those who aren’t interested in buying.
That enables companies to spend their money more effectively. Instead of putting up a billboard in Times Square and hoping the right people see it, they’re using data to target the right consumers at the right times.
And that’s good for the customer, too.
Catering To Customers
Sometimes a woman will come to our website, take our Fit Finder quiz, and then decide not to buy anything. When she comes back, the calls to action for the Fit Finder will be gone. In its place, she might see products that fit her shape or size—specific content that’s adapted for women like her.
Big data allows us to personalize the customer journey by intelligently segmenting our customer base.
It isn’t 100% personalized to each individual, like many think. But with so many data points to draw from, we can tailor content to certain types of customers. It’s more personal, and it makes sense from our standpoint and the customers.
Our customers tell us: We want you to know who we are.
They want to come back to our site and have an experience that reflects their previous visits. They want to get an email that talks about their preferred style and size. Without big data, we couldn’t create that personalized experience.
Big data is the next frontier in e-commerce, but its uses revolve around one key question:
Are you delivering value to your customer?
It all revolves around creating a better digital experience than what they can get in a store. We’re that point, and big data is going to take us even further.