Big Data Ecommerce – Big data is a technology that enables storing, processing, and analyzing data in very large quantities and in complex forms. This makes big data often used by businesses because it can provide in-depth data analysis results that lead to better business decisions and strategies.
ECommerce services have many data sources that can be used to make strategies and make decisions. However, in its application, e-commerce actors sometimes find it difficult to integrate this data. For this reason, the role of big data is needed.
Benefits Of Big Data For Ecommerce
In the world of e-commerce, Indonesia’s big data plays a very important role, from consumer analysis to product innovation. This analysis is useful to provide an overall framework such as consumer profiles and what potential can be extracted from these consumers.
In its implementation, consumer data is collected and their interactions carried out on e-commerce websites are then analyzed so that sales are maximized. There are several benefits of implementing big data to maximize e-commerce strategies as follows:
1. Personalized Shopping
Big data can also personalize shopping based on the interests of the consumer. In line with the improvement of the shopping experience, the data collected on the e-commerce platform will be able to provide you with a promotion strategy that runs more effectively by personalizing shopping.
For example, consumer shopping history data is analyzed in what product category it belongs to, from this analysis it is found that if consumers like goods with large discounts, you can provide relevant discounts to consumers for listed products.
2. Improve Shopping Experience
Big data will be able to increase consumer loyalty by providing a satisfying shopping experience. As an example, consumers visit a website where they do not intend to shop immediately, but are only looking for insight into what products they need.
With data, e-commerce actors can also provide product recommendations that match consumer interests and are tailored to their search history. Big data is also able to evaluate the flow of consumer spending from entering to leaving the website.
3. Increasing E-Commerce Innovation
The next benefit of Indonesia’s big data is increasing e-commerce innovation. This innovation is a fixed price for every business to remain flexible to changing trends. This innovation is also used to keep consumers loyal to your business.
With this big data analysis you can see trends in consumer behavior at certain times so that you can use this to innovate.
For example, so far conventional discounts have only been in the form of price discounts, but now they can be given to more attractive innovative forms such as cashback, flash sales, quizzes to games.
With big data you can innovate more in your business, not monotonous that makes consumers get bored and move on to others. During this pandemic, besides you have to keep moving the wheels of your business, you are also required to be able to change the business strategy that you implemented before.
Meanwhile, Indonesia itself is a country with the largest online market in Southeast Asia, so competition will be very tight and business demands will be even tougher, so you have to start using big data. Big data Indonesia will be able to help your business innovate and perform analyzes that are very useful for your business.
The Role of Big Data for E-Commerce
a. Innovation Development
It is no longer a secret that innovation is something that must be done by business people so that the business does not die. Innovation that suits customer needs will keep customers loyal and of course boost sales.
By utilizing big data, eCommerce actors can see consumer tendencies to make innovations that are more targeted. For example, e-commerce actors may decide to provide bonuses in the form of cashback, discounts, flash sales to interesting games. By using these innovations, business people can always be relevant to their customers.
b. Improve customer service
One of the most important things to note for an eCommerce is to improve service for customers. By using data analysis, eCommerce actors can find out user flow when visiting websites.
From here, eCommerce actors can find out which features are frequently used by users, what filters are most frequently used by users, and whether the website navigation is clear enough for users.
c. Get to know the customer better
By using big data, we can collect information and customer data that use our services. This can be a reference for an e-commerce to offer products that suit customer needs.
When a user visits an eCommerce website. Some users don’t just shop right away, but they also look for information about what products they need. By using customer history data, eCommerce actors will get insights that can be used to provide product recommendations that suit customer needs.
5 Benefits of Big Data for Online Business
Big Data for the past few years has become a hot topic of conversation in the digital IT world. Big Data has great benefits for online businesses, so it’s no wonder that many business people are starting to pursue Big Data.
1. Big Data for Data That Continues to Grow Every Second
The IDC report, as stated on talend.com, reveals estimates that data will grow by up to 61% to 175 zettabytes in 2025. Ecommerce is a contributor to large chunks of data in that percentage. These huge chunks of ecommerce data include data on customers’ social media activity, geolocation services, browser browsing history, and shopping carts left by ecommerce customers.
Collecting all user data on the internet is an extraordinary step, but this data will not provide benefits if it is not properly analyzed. Ecommerce is now leveraging Big Data analytics to analyze consumer buying behavior in the context of a trending market.
In this way, e-commerce is able to design marketing strategies that directly target consumer preferences, create products that meet consumer needs, and ensure that each of their employees is able to provide customer service as expected.
To make it clearer, let’s see in which areas Big Data can be useful for online businesses.
2. Safer Online Payments
It is important for customers to know that the ecommerce site they visit provides a secure online payment system. The good news is that big data analytics can spot unusual spending behavior and alert customers.
Companies can set up alerts for fraudulent activity, such as multiple different purchases within a short period of time using a single credit card, or multiple payment methods made under the same IP address.
Big data analysis can also determine the best payment method that is specifically tailored to each user. Currently, there are even e-commerce that implement the easy checkout feature to reduce the number of abandoned baskets. There are also those who put a wish list button on the checkout page if the customer changes his mind.
3. Better Shopping Experience
E-commerce always collects user data in order to analyze it as an anticipatory measure of how customers will behave in the future. When you shop on ecommerce on a daily basis, they will collect the number of clicks, the number of products you have added to your cart, and the average duration between your homepage visit and purchase.
Big data analysis can help ecommerce companies to develop strategies to overcome several problems, for example: abandoned shopping carts, or reducing the time to make purchases, and many others. All done to provide a better shopping experience to customers.
4. Increase Personalization
As well as enabling customers to make secure and simple online payments, big data can foster a more personalized shopping experience. Big data analysis is able to place customer segments based on gender, location and social media.
The information collected can help companies create promotional emails tailored to the target audience, formulate marketing strategies tailored to the target audience, or launch products specifically for certain customer groups.
For example: You are a pregnant woman who happens to often search for information about pregnancy, Google can get your search information to provide advertisements about pregnancy products.
5. Dynamic Customer Service
Customer satisfaction is the key so that customers want to come back to shop again. Without customer satisfaction, the company can suffer losses. Business.com as quoted by talend.com revealed that the cost of acquiring new customers can be 5 to 10 times that of selling to loyal customers. Plus, loyal customers typically spend 67% more than new customers.
6. Optimizing Prices and Increasing Sales
Big data analysis for e-commerce companies can help determine the most reasonable prices for certain customer criteria in order to increase sales from online purchases. Loyal ecommerce customers may be given access to new products earlier than regular customers, etc.
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Thus the review that Terraveu.com have prepared about Big Data Ecommerce: Definiton, Example, Insights of 2023. That’s all and thank you!!