6 Reasons for E-Retailers to Leverage Big Data
For any business, it is vital that they are able to analyze the market from their consumer’s point of view. Moreover, over the years, the advancements made in technology have enabled marketers to do just that, notably businesses in direct dealings with their customers. In this case, the e-commerce sector warrants special attention for applying analytics to their huge repositories of customer data. These analytics solutions facilitate them in customizing the products or services offered to their clients. Here are six reasons that e-retailers can leverage with the application of data analytics:
1. Understanding Global Customer Distribution
Being online implies that the businesses naturally have access to a global audience. The advantages of understanding the global consumer distribution are many, the most prominent one being able to cater to specific consumer segments with enhanced service offerings. Although, a web domain is not a localized entity, e-commerce businesses do need to focus their location-specific consumer buying behaviors to improve long-term profits.
2. Improved Inventory Management
The inventories are yet another vital component of an e-commerce website — their management has to be effective as well as efficient, all at once. Enhanced inventories ensure that they do not hamper the supply chain management and logistics during peak hours of traffic. Analytics allow the supply chain and logistics managers to identify the peak hours of website/ mobile app traffic, identifying points of improvements to address such peak hour sales.
3. Price Optimization
There is no doubt that e-commerce businesses offer highly competitive prices. However, what works in their favor or which segments of the economy they stand to gain the most from? The application of big data and analytics solutions can empower online retailers to study and draw facts-based conclusions regarding products pricing, user distribution and their respective purchasing powers. Data analytics can further allow e-commerce businesses to optimize prices and improve the overall returns with the roll off bulk stocks.
4. Micro-segmentations of Consumers
Identifying customer segments by segregating them on their age, occupation, demographics, etc., with the application of big data and analytics solutions can aid online businesses in formulating marketing strategies. Analyzing and converting their entire consumer base into micro segments can further enhance marketing strategies, affecting the imparted sales and services.
5. Demand Predictions
E-commerce business owners can also implement data analytics to study the market conditions and determine current trends in buyer behaviors. Additionally, big data and analytics solutions can quite effortlessly predict demands products and their customer buying patterns.
6. Web Traffic and ROIs
Monitoring web traffic and keeping track of the users’ journey on their web pages is another important analytics option for the online businesses. They can formulate data-driven marketing campaigns that essentially improve on their incoming traffic and subsequently improve the Returns on Investments (ROIs).
A web development company California can serve the dual purpose of either developing or optimizing a website for their clients from the e-commerce industry. The websites developed by this web development company allow multi-platform viewability, besides ensuring intuitiveness and user engagement. Moreover, focusing on interactivity, the web development California company also offers their valuable, data-based insights using Big Data and Analytics Solutions.