The discussion around predictive analytics might be new, but the technology itself has been around for quite a while. Businesses from different sectors are applying predictive analytics to generate revenue and attract customers. However, data is the most reliable asset for every industry, starting from healthcare to transportation and e-commerce. Amongst all the industries, Big data has made a significant contribution to the e-commerce industry.
Every e-commerce industry has its unique ways of using data science for different purposes. For example, Amazon uses data for improving E-commerce experience.
There are ample ways Big-data is and will transform the e-commerce industry. According to a study published by BARC, e-commerce corporations can employ big data in four significant ways: strategic decision making (69%), improved control of operational processes (54%), a better understanding of the customers (52%), and cost reductions (47%).
E-commerce companies can harness the power of big data to understand their customer’s buying behavior. These companies can also create new products by providing tailor-made needs and preferences.
Let’s take a deep dive into a few incredible ways in which e-commerce industries can leverage this technology’s power:
- Increased personalization – 86% of customers state that personalization plays an important role in their buying decisions. The technology can be used to enable personalized product recommendations and create a 360-degree view of the customer. Amazon, the retail giant, uses Amazon Personalize to improve customer experience and boost sales by creating individualized recommendation. Amazon generates 35% of its revenue by its recommendation engine.
- Prevent Fraud – E-commerce companies must ensure customers’ security. Big Data helps in the prevention of fraudulent means by identifying and evaluating customer behavior and product sales. Different shipping and billing addresses, paying through more than one payment mode for one product shipping, unsolicited international orders, and large value order are some of the indicators of suspicious behaviors.
- Predict Trends – Different data sources are put to use to make predictions, including the history of previous sales, economic indicators, customer searches, and demographic data. By evaluating data, e-retailers can prepare for emerging trends, streamline business operations, and plan marketing campaigns around large events.
Besides the above key areas, there are even more avenues where data can be applied to transform e-commerce businesses. Big Data has immensely altered the e-commerce industry and is perpetually evolving. The bottom line is that Big Data technology is the key to break through all of the customer data to bring out even the small pieces of information that can accelerate the growth of a business.
Wish to be a leader in the e-commerce business? Make sure to gear up with the latest data science technologies and leverage them.