Categories: Ecommerce Industry News, Updates and Trends

How to Amplify Your Ecommerce Store’s Success with Big Data Analytics

“Most valuable resource for the last century was oil. For this century, it is data.” – Economist

Advanced research in Big Data has made advertisements in online stores highly targeted, and sales more profitable, leading to precise predictions and laser-target advertisements.

Now ecommerce stores can market with certainty to only those people that are actually interested in their products. They can work with zero inventory, ordering products directly from manufacturers/producers when needed and automating customer support completely, thereby improving profits and decreasing resource wastage.

The variety of data available to businesses has greatly improved business efficiency. And, a big credit for it goes to organizations that collect and share user data through their advertising platform.

Let’s see how these advancements are impacting the retail landscape and how you can tap into this pool.

Intelligent Marketing and Ads

In the last five years, dropshipping has changed the shopping landscape by using smart advertisement strategies for targeting users.

In this model, marketers market products of manufacturers at a price of their choice and then earn commission on the upscale price. This model is only successful because of the way targeted ads are shown to the users. Shopify and Teespring are two online stores that mostly rely on the dropshipping business model.

Digital advertising platforms such as Google, Facebook, and even Pinterest now offer 99.9% accuracy in targeting by learning from running ads and optimizing their algorithms when necessary to decrease costs and improve sales.

How to benefit from it?

Ecommerce store owners should hire seasoned paid marketing specialists to target potential customers through these platforms and make lists that will serve as the base for retargeting campaigns. In fact, retargeting has proven to be the most successful advertising strategy available to ecommerce businesses today.

Optimized Sales Funnels

Ecommerce stores can now optimize website pages by using big data. Several provide in-depth analysis of each webpage, providing insights about the clicks received from users on a button, most viewed area of the web page and similar other information. Augmenting that, heatmaps and click analysis tools allow ecommerce businesses to optimize pages further, sometimes even providing suggestions, to improve conversions.

How to benefit from it?

User tracking tools can track every action of users down to individual clicks, allowing owners to know what went wrong during the conversion process. The data can then be used to make even better sales funnels that the visitors simply can’t ignore.

For instance, CrazyEgg is a heatmap tool that allows companies to learn from the traffic flow of their website. This, combined with A/B testing campaigns and web design surveys provide a useful understanding of how to improve pages further.

Optimized Product Listings

Product page listing guides precisely mention improvement areas that help stores rank higher in search engine listings. The process started with Amazon and has now become an industry-wide practice for improving landing pages, product listings, and related store areas.

However, big data has greatly enhanced this process and now, ecommerce websites are using automated tools such as EMERGE App and Sellbrite that optimize the product listings on multiple pages. These tools then help in analysis and generate reports on improving product pages further.

How to benefit from it?

By using these product optimization tools for product listings, users can reduce their workload and improve conversions on their ecommerce stores by constant improvements.

Close-to-Zero Inventory

For many ecommerce stores, keeping track of inventory is a serious challenge because there is no unified process in place that tracks the inventory.

Tools such as Skubana and Orderhive maintain detailed inventory record and provide real-time analytics of all inventory related numbers.

In fact, many Amazon sellers have used Skubana to improve their order fulfillment process by optimizing products and automating the inventory management process.

How to benefit from it?

Big data helps predict inventory related trends so that online store can adopt the just-in-time (JIT) easily. This allows them to optimize store listings and improve store revenues.

Shortest Routes for Shipping

Amazon is using the idea of shortest shipping routes for its delivery trucks for about three years. The idea reroutes trucks to the nearest pickup points in real time. As a result, logistics is greatly improved and delivery time shortened. FedEx improved the idea further by using small autonomous trucks for local delivery.

How to benefit from it?

Ecommerce stores having local delivery models can arrange their own routes for delivery of products through the route planning apps such as MyRouteOnline, Route4Me and others to improve customer retention.

Accelerated Customer Support

Chatbots are now making it possible to automate customer support. From the very start of online commerce, companies have struggled with keeping customers happy by replying to them instantly. They have recruited more CSR executives to answer all customer queries on time, and also gone for knowledge bases where customers can find the answer to their problems in an instant… but all this to no avail.

With all the data gathered, these companies have realized that the pareto rule [the 80/20 rule] also applies to customer support – where 20 percent problems actually need human intervention, while 80 percent problems can be solved through customer support.

Chatbots powered by machine learning algorithms are now a useful asset for ecommerce stores. In response to trigger words, these bots either provide relevant information or pass the query to a human CSR.

How to benefit from it?

Several chat bots companies such as Smartbothub and BotsCrew provide chatbot development services for ecommerce websites. These bots can be integrated with  Skype, Stack, FB Messenger and other chatting apps. Ecommerce stores can use these systems to streamline the customer support process, thereby improving customer satisfaction and engagement.

Final Word

Big data ecommerce analytics has become a core function of ecommerce strategy and now store owners should focus on big data tools for success in this industry.

As a result, they can improve their product landing pages, inventory management systems, logistics, and consequently store revenues.

Sharjeel Ashraf :Sharjeel loves to write about startups and ecommerce. In his free time, he is on the road or working on some cool project in his den.