The analysis of the data offered by the Big Data and their use can offer merchants in the eCommerce sector an important competitive advantage. Big Data is a term applied to both structured and unstructured data sets that are so large that it is difficult to process using traditional database and software techniques. Although at first it may seem that the use of Big Data is only accessible to large retailers, in reality all eCommerce can benefit, no matter how small.
The structured data of Big Data are the fixed fields within a database, for example, the personal data of customers or their purchase history. unstructured data they refer to email, votes, tweets, "likes" or "shares" on social media. None of this unstructured data resides in a fixed database that can be accessed by retailers; however, they are a very useful research tool for companies.
Traders can use large volumes of data in many different scenarios. This can include comparing the traffic a particular product receives to the sales volume for that product. If a product receives many visits but few sales, the analysis of the data obtained can offer an explanation that leads to a change in strategy or the detection of some type of error.
The 4V's of Big Data
The challenges associated with Big Data are summarized in what has been called the 4V's: volume, speed, variety and value.
- The challenge of costumes It exists because most companies generate much more data than their systems can handle.
- The challenge of the speed it is a challenge when data analysis or storage is slower than its generation (for example, when without an online store you have a large number of transactions at once).
- The challenge of the variety It exists due to the need to process different types of data to produce the desired insights (social media data, customer service calls, visit data, purchase ratio, etc.)
- The challenge of value It is about how we make the insights that data offer valuable, because only by asking the right questions will we get useful answers.
How a small eCommerce can make use of Big Data
Most retailers believe that big data analytics is only available to large companies. However, data analysis is very also important for small businesses electronic devices and is essential to compete with the largest ones, especially those that can interact with their customers in real time.
For take advantage of the use of Big DataSmall retailers should use them to personalize actions, create dynamic prices, offer better customer service, manage fraud, report on the actual availability of the product and the status of purchases made, and make predictions for the future.
Customization
Every buyer has a different way to buy. Real-time data should serve to provide you with a personalized experience that references both content and promotions, including rewarding the most loyal and returning customers.
Dynamic prices
To achieve this is to achieve a big advantage when competing for price in the market. For them it is necessary to take into account the price of the competition, the volume of sales, the preferences of the clients according to the region, etc.
Customer service
Excellent customer service in all phases it is essential for the success of an eCommerce. The Interacciones of customers through contact forms or comments on social networks can be used to increasingly improve the service offered to that same buyer. The solution will be faster and the buyer will feel better served.
Fraud management
Thanks to Big Data it is possible to detect fraud earlier, even in real time. The infrastructure necessary for this will turn that online store into a safer environment for business development and will improve your profitability.
Visibility of product data and purchase status
Customers expect to be informed about the availability actual product or whether you will have to wait and, if so, how long. In addition, it is important to keep the client informed about the estatus of your purchases, so you can always know where your products are and make sure they are controlled.
Future predictions
It is essential for a business to be able to forecast its sales as much as possible in order to be stocked and also prepared to logistics level.
Conclusions
It may seem like a daunting task, but advances in technology and the great competition established between providers of e-commerce and marketing solutions mean that these challenges can be faced by small eCommerce. The key is not to disparage a small business because it is online, but take advantage precisely of its small size to stand out where the greats have it most difficult. But for this you have to enter the game of the greatest and use their weapons.
More information - Keys to optimizing and developing eCommerce in 2014