Big Data in e-commerce

The emergence of the Facebook debacle involving Cambridge Analytica and the massive amounts of data collected from 87 million users, which was used to influence the 2016 presidential election, revealed big data as what a mighty beast it can be.

Even when used with good intentions, as Facebook CEO Mark Zuckerberg claimed his company did, data can lead people and businesses astray.

Hardwired dives go to the heart of the matter: “Modernity provides too many variables, but too little data per variable. So spurious relationships grow much, much faster than real information. In other words: Big data can mean more information, but it also means more false information.

Relevance in Big Data

Cherry picking that can be done with big data allows you to manipulate the information to tell you what you want, which is great for headlines, but bad for business.

However, that's not to say that big data can't be an essential tool in your arsenal to grow your ecommerce channel.

The key to managing big data in such a way that it works for you requires that you focus on two things:

Your circle of competence.

The way the world works.

One of the most exciting and challenging things about running an e-commerce site or channel is the unpredictability - although the possibility of having to appear before the Senate, as Zuckerberg did, is perhaps not the kind of excitement with which any business owner. business wants to be involved.

However, both technology and human behavior are constantly changing, and as a business owner or e-commerce manager, you have to be ready to adapt.

Due to the ease of creating and maintaining an e-commerce store, as well as the rise of micro-brands, today's market is plagued with fierce competition and declining customer loyalty.

Online businesses are constantly looking for ways to retain customers and improve the customer experience, not knowing that the solution is at their fingertips.

Despite intense competition, e-commerce business owners have an advantage over traditional retailers who own brick and mortar stores.

Increase sales

Electronic commerce is agile and adaptable; These businesses are not confined to a particular location and often have inventory or retail leases to worry about when using 3PLs or running an e-commerce-only operation.

E-commerce businesses have the ability to reach a global market, with access to information that retailers do not have.

However, it is even more essential that ecommerce business owners and managers operate within their circle of competence.

Everyone has a circle of competence created through study and experience. The key is to function within this circle and leverage their expertise to amplify your production.

When deep knowledge of a market, product or clientele is properly harnessed, greater rewards can be reaped for the same amount of effort as someone who operates outside their circle of competence.

As Warren Buffet wrote in a 1996 Letter from the President, “What an investor needs is the ability to properly evaluate selected businesses. Note that the word "selected": You do not have to be an expert in all companies, or even many. You just have to be able to evaluate the companies within your circle of competence. The size of that circle is not very important; knowing your limits, however, is vital. '

Combining your understanding of how the real world works with your circle of competence will allow you to use big data to your advantage.

In other words, it can help you build a data-driven ecommerce business.

What is big data and why should you use it?

Big data is a buzzword when it comes to modern business management. It refers to extremely large data sets that can be analyzed to reveal patterns and trends in human behavior.

With people producing an estimated 1.7MB of new information per second, our cumulative digital universe of data is expected to grow from 4.4 zettabytes to 44 zettabytes (or 44 trillion gigabytes) by 2020.

E-commerce platforms like BigCommerce track and give merchants access to consumer behavior data, which business owners can use to make informed decisions.

However, despite having so much "power" in their hands, less than 0,5% of the available data is used for these purposes.

In this, we'll see how you can leverage ecommerce big data effectively to grow your business and better serve your customers.

The benefits of using big data in e-commerce

According to a BARC study, some of the benefits of using big data include:

Make better strategic decisions (69%).

Better control of operational processes (54%).

Better understanding of customers (52%).

Cost reduction (47%).

This is crucial for e-commerce businesses. As you scale, "getting geeky" about your data becomes more and more important. Data-driven ecommerce businesses regularly measure and improve the following:

Improve buyer analysis.

Improve customer service.

Personalize the customer experience.

Provide more secure online payment processing.

Improve targeted advertising.

How to Use Big Data for Ecommerce Business Success

  1. Buyer analysis.

Big data is useful for developing buyer personas or profiles.

This helps you determine customer preferences, such as which products they like best or what hours they usually shop.

This data can be used to improve your operations.

For example, you can use the information on peak sales hours to get rid of overstock at sales prices or run social ads during these periods.

Ecommerce big data can also reveal some unexpected buying behaviors.

For example, using big data, Walmart found that people who bought diapers also tended to buy beer. Imagine the cross-promotion opportunities ...

For companies using SaaS technologies or data analysis tools, this type of information is often easy to discover.

The emergence of the Facebook debacle involving Cambridge Analytica and the massive amounts of data collected from 87 million users, which was used to influence the 2016 presidential election, revealed big data as what a mighty beast it can be.

Even when used with good intentions, as Facebook CEO Mark Zuckerberg claimed his company did, data can lead people and businesses astray.

Hardwired dives go to the heart of the matter: “Modernity provides too many variables, but too little data per variable. So spurious relationships grow much, much faster than real information. In other words: Big data can mean more information, but it also means more false information.

Cherry picking that can be done with big data allows you to manipulate the information to tell you what you want, which is great for headlines, but bad for business.

However, that's not to say that big data can't be an essential tool in your arsenal to grow your ecommerce channel.

The key to managing big data in such a way that it works for you requires that you focus on two things:

Your circle of competence.

The way the world works.

One of the most exciting and challenging things about running an e-commerce site or channel is the unpredictability - although the possibility of having to appear before the Senate, as Zuckerberg did, is perhaps not the kind of excitement with which any business owner. business wants to be involved.

However, both technology and human behavior are constantly changing, and as a business owner or e-commerce manager, you have to be ready to adapt.

Due to the ease of creating and maintaining an e-commerce store, as well as the rise of micro-brands, today's market is plagued with fierce competition and declining customer loyalty.

Retain customers

Online businesses are constantly looking for ways to retain customers and improve the customer experience, not knowing that the solution is at their fingertips.

Despite intense competition, e-commerce business owners have an advantage over traditional retailers who own brick and mortar stores.

Electronic commerce is agile and adaptable; These businesses are not confined to a particular location and often have inventory or retail leases to worry about when using 3PLs or running an e-commerce-only operation.

E-commerce businesses have the ability to reach a global market, with access to information that retailers do not have.

However, it is even more essential that ecommerce business owners and managers operate within their circle of competence.

Everyone has a circle of competence created through study and experience. The key is to function within this circle and leverage their expertise to amplify your production.

When deep knowledge of a market, product or clientele is properly harnessed, greater rewards can be reaped for the same amount of effort as someone who operates outside their circle of competence.

Combining your understanding of how the real world works with your circle of competence will allow you to use big data to your advantage.

In other words, it can help you build a data-driven ecommerce business.

What is big data and why should you use it?

Big data is a buzzword when it comes to modern business management. It refers to extremely large data sets that can be analyzed to reveal patterns and trends in human behavior.

With people producing an estimated 1.7MB of new information per second, our cumulative digital universe of data is expected to grow from 4.4 zettabytes to 44 zettabytes (or 44 trillion gigabytes) by 2020.

Many brands think that access to big data is limited to large retailers who can afford an in-house team or who can afford to buy data from data brokers.

You will be happy to find out that this logic is flawed, as even the smallest businesses have the wherewithal to access and analyze big e-commerce data.

E-commerce platforms like BigCommerce track and give merchants access to consumer behavior data, which business owners can use to make informed decisions.

However, despite having so much "power" in their hands, less than 0,5% of the available data is used for these purposes.

In this, we'll see how you can leverage ecommerce big data effectively to grow your business and better serve your customers.

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The benefits of using big data in e-commerce

According to a BARC study, some of the benefits of using big data include:

Make better strategic decisions (69%).

Better control of operational processes (54%).

Better understanding of customers (52%).

Cost reduction (47%).

This is crucial for e-commerce businesses. As you scale, "getting geeky" about your data becomes more and more important. Data-driven ecommerce businesses regularly measure and improve the following:

Improve buyer analysis.

Improve customer service.

Personalize the customer experience.

Provide more secure online payment processing.

Improve targeted advertising.

How to Use Big Data for Ecommerce Business Success

  1. Buyer analysis.

Big data is useful for developing buyer personas or profiles.

This helps you determine customer preferences, such as which products they like best or what hours they usually shop.

This data can be used to improve your operations.

For example, you can use the information on peak sales hours to get rid of overstock at sales prices or run social ads during these periods.

Ecommerce big data can also reveal some unexpected buying behaviors.

For example, using big data, Walmart found that people who bought diapers also tended to buy beer. Imagine the cross-promotion opportunities ...

For companies using SaaS technologies or data analysis tools, this type of information is often easy to discover.

BigCommerce Insights Analysis

BigCommerce Insights Analytics automatically serves this type of information.

  1. 2. Customer service.

Customer service plays a very important role in e-commerce.

It costs 5 times less to retain customers than it does to acquire new ones, and loyal customers spend up to 67% more than new customers.

If customers are not satisfied, 13% of them will tell 15 or more people that they are not happy. On the contrary, if they had a positive experience, 72% said they would share it with 6 or more people.

Online retailers can use big data to track customer service experiences, like showing how fast their response times are, which plays a big factor in customer service.

71% of online customers expect to be able to access online help in 5 minutes.

The large data can also be used to track delivery times and customer satisfaction levels, and help companies identify potential problems and then resolve them before the customer is involved.

Integration apps and tools like Reamaze can help you do this in a matter of minutes.

“I have used many support products in the past and there is nothing better or simpler than Reamaze. This is a well thought out product with the perfect set of features. It took me about 10 minutes to set everything up. Literally.

I can help customers using Live Chat directly in my store. I can even see what customers are doing and where they are going. It works with my emails and social accounts too! ». On the contrary, if they had a positive experience, 72% said they would share it with 6 or more people.


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