With the appearance of Covid-19, purchasing habits have been transformed. The eCommerce was established as a competent purchasing model, and the demands of users to have an optimal online store increased.
Big Data in e -commerce serves as a great tool to collect information from potential customers, offer them a good user experience and convert them into sales. If you want to know how to take advantage of this technology, read on.
It may interest you: Master in e-Commerce and Digital Marketing
Importance of Big Data in e-commerce
There are different ways in which Big Data has revolutionized and will revolutionize ecommerce businesses . Thanks to techniques such as predictive analysis , companies can track a high volume of data on the Internet in order to make personalized recommendations, determine customer behavior on a web page, analyze their purchasing patterns, prevent fraud and improve the user experience ( UX).
And these are general factors, if we go further and implement a powerful Big Data system, we will be able to obtain a database with more detailed information such as the display time of a specific product, the amount of abandoned carts , history of interactions, among others. others.
Some data reflects that companies that use Big Data increase their sales by 73% , contrary to those that have never done so.
Enabling personalized product recommendation is one way data science is transforming e-commerce businesses.
Save all the possible data of each user in an orderly way. If you want to convert, it is clear that the best thing is to know your clients and adapt to their needs. The more personalized the actions are, the more conversion opportunities you have . The objective of applying Big Data in your eCommerce is to get one step ahead of users or customers.
And the data proves it. According to a study conducted by Salesforce, online shoppers are 4.5 times more likely to add items to the cart of products that have been recommended by the platform. Another relevant fact is that 52% of users are willing to share their data to obtain recommendations for products similar to those they have already seen.
It is clear that personalization through Big Data is essential to generate greater conversion.
Have you entered a store and abandoned the shopping cart? Or have you made a query and then received an email with other recommendations based on your search? This is how email retargeting works . E-commerce uses your data to offer you products and services tailored to you.
Many airlines or discount sites use this option. A Big Data system collects navigation data and the time spent on a page , that is why if you search for a flight today and tomorrow you search for it again, it is most likely more expensive, however, if you search from another user or IP will show you the same price as the first search.
What is this technique used for? To generate urgency in the purchase . If you believe that tomorrow the price will be higher, it is clear that you are going to buy now.
An example is Letbonus, they take advantage of their eCommerce with Big Data Marketing , how? They offer you a super discount on their price but you have to make the purchase in the next 10 minutes. In this case, the page saves your data and if you enter within an hour that option will no longer appear. It is a way to generate immediacy in the purchase decision.
It is not the same to serve a customer without knowing who he is and where he has browsed the web, than knowing that the customer has entered 3 times, has seen 8 products, has compared 3 of them, closed and returned the next day and the end asks you for help. Having this history, it will surely be easier for you to help him or make him a recommendation of the products of his interest. In addition, the client will generate more security , trust and the treatment will be much closer.
Has it ever happened to you that you receive advertising for a product that you need but have not yet searched for? This is possible through predictive analytics .
The Big Data system uses different data sources to make predictions , including past sales history, economic indicators, customer searches, and demographic data to predict and deliver what buyers need before they ask for it .
We give you an example: Imagine that every month you make the purchase through the electronic commerce of your favorite supermarket and in the shopping cart you put eggs, rice, milk, fruit and toilet paper as basic products. When you go to make the purchase for the following month, you will see that before even selecting the product, the ecommerce can send you a notification saying: “we have seen that this time you have not put toilet paper in your cart, do you want to add it?”
Big Data in e-commerce allows you to store important user data in an orderly manner as well as helping you make business decisions based on products, customers, sales, income, etc.
If you know that a product is the best seller in the first week of summer, then each year you can have a stock to supply buyers as quickly as possible.
On the contrary, if you analyze the data and you realize that there is a product that people visit but that does not have any sales, then you can determine that it is a product that you should not have in stock or that you will have to launch a liquidation offer to get it off of you.
It can also help you define what type of product a certain target is looking for or buy, or what campaigns you should carry out at each time of the year.
With customer data you can get to know every step they take within the store, you can use this to make recommendations for the same products from other brands and prices, or recommend products that complement the purchase.
For example, if a customer adds a necklace to the cart, you can suggest the matching earrings, scarf, bracelet or glasses, and you will see that they like one and they will buy more products than you imagined. With this option the average value of the shopping cart will increase .
You can also modify the store in real time based on user behavior . In this way, you can define rules of the type: if a user adds a product to the cart and you do not have their email, launch a pop-up to capture it (remember that the more data you have about the user, the more sales opportunities), or if a user has visited a product more than 3 times in the last month but hasn't bought it yet, you can show him a 10% discount coupon. If the user feels special, the chances of buying increase.
Your competitors' data is also relevant to your eCommerce. A real-time view of the data allows you to modify prices and products instantly. Thus, you prevent potential customers from buying a cheaper product from the competition.
To do this analysis you have tools like: kompyte , Netrivals or Minderest
Some success stories of companies that use Big Data in eCommerce and whose steps you can follow to capture ideas to implement in your online store are:
The Alibaba giant has shown that with the proper use of data you can get any product anywhere in the world. In this platform, the seller and the buyer may never have a contact beyond the purchase, even so, transactions of billions of euros are carried out.
eBay is the largest online marketplace in the world where you can buy anything. The spectacular thing about this platform is that it offers you a personalized experience; It sends you promotions based on your data, it makes suggestions based on the navigation on its page, etc.
Groupon is based on information from customers and suppliers to make daily transactions, taking into account user interests, searches, browsing history, purchases made, location, etc. The platform sends you emails with personalized offers at incredible prices that you will hardly resist.
On the Internet you can find a large number of examples of the use of Big Data that Amazon has made, this is because it is probably the model example of implementation of strategies for the use of electronic commerce data , not in vain it is one of the transactional portals biggest in the world. They work with predictive data analysis in areas such as personalizing each interaction, value rather than price, predicting trends, and working to improve the customer experience.
Whether you already have an eCommerce or if you are thinking of setting up one, you must take into account Big Data to ensure the success of your electronic commerce . Think about what data is necessary and how you can organize it to get the most out of it. If you need help, I suggest you take a look at Master in e-Commerce and Digital Marketing from IEBS Business School where you will learn everything you need.
If you have any strategy that you have implemented or that you would like to put into practice, share it with us by leaving a comment on the post! What can you think of to boost your e-commerce with Big Data ?