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Blog June 21st, 2021

5 Benefits of Big Data for Online…

Over the last few years, Big Data has been a hot topic in the IT and digital world. Businesses small and big have now started to pursue Big Data for its abundant benefit in boosting online sales.

Big Data to Handle Data that Keeps on Growing Every Second

IDC as it is reported in has revealed that data were predicted to grow 61% to 175 zettabytes in 2025. Ecommerce is the platform that accounts for large chunks of data. This huge chunk of data covers the customers’ social media activity, geolocation services, browser history, and abandoned carts.

Collecting all of these data is a great step but it won’t give us benefits without a good analytical approach. The truth is, e-commerce now has gone further with Big Data in its hands. They collect all types of data to analyze customers’ purchasing behavior in the context of a trending market.

Analyzing Big Data will help e-commerce companies to formulate the best marketing strategies that aim right at the customers’ preferences, create products that the market demands, and ensure every staff can give their best customer service as the company expected.

Let us see in what area Big Data can give us benefits especially for online businesses today.

(1) Better Shopping Experience

Ecommerce always collects user data to be able to analyze it as a precautionary measure of how customers will behave in the future. When you shop at e-commerce, they will collect the number of clicks, the number of products you added to the cart, and the average duration between homepage visits and purchases.

Big data analytics can help e-commerce companies develop strategies to deal with abandoned shopping carts, reduce the time to make purchases, etc. All of this is done to provide customers with a better shopping experience.

(2) Provide Safety Payment System

Before making purchases on e-commerce sites, it is important to check whether the sites provide a safe and secure payment system. The good news is that big data analytics can spot unusual spending behavior and alert customers. Companies can set alerts for fraudulent activity, such as several different purchases in a short time by using one credit card, or multiple payment methods made with the same IP address.

Big data can also determine the best payment method tailored specifically for each user. We can even see e-commerce that implements easy checkout to reduce the number of abandoned carts. Some e-commerce companies put a wishlist button on the checkout page to facilitate customers who change their minds.

(3) Improve Personalization

Aside from allowing customers to have a simple checkout experience and secure payment system, big data create a more personalized shopping experience. Big data analytics are capable of categorizing customer segmentation based on gender, location, and social media.

The information collected can help the company formulate a promotional email tailored to the audience target, formulate the right marketing strategy, and/or launch a new product or service specifically designed for a certain type of customer group. 

(4) Optimize Price and Increase Sales

Big Data analytics for e-commerce companies can help them to set the best fair rate for a certain type of customer, allowing them to increase sales from online purchases. Companies can also give loyal customers early access to new products on online e-commerce sites.

(5) Dynamic Customer Service

Customer satisfaction is the key to bring them back to repurchase. Without customer satisfaction, the company will lose a chance of gaining more profit. as stated in reveals that it costs 5 to 10 times more to acquire a new customer than to sell to a loyal customer. Also, we cannot deny the fact that loyal customers typically spend 67% more than new customers.

Companies that focus on improving customer service are more likely to obtain good reviews and can maintain revenue from repeat transactions. Making customers happy and satisfied should be a priority for every e-commerce.

How can Big Data improve the customer service experience?

Big data can describe issues in product delivery, customer satisfaction, and even show the perception of a brand on social media. Knowing all these things can help the company to determine the areas that need to be improved.


Business photo created by natanaelginting –

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