From understanding your competitors to pinpointing what makes your target audience tick, big data has myriad benefits for e-commerce entrepreneurs. In order to reap these benefits, you must have a strategy for tracking data from your e-commerce website and marketing campaigns.
Rather than putting your time and energy into the wrong tasks and tactics, big data can benefit your e-commerce ventures by streamlining your approach to focus on what will give you the biggest return on investment.
Improve the Customer Experience
When it comes to e-commerce, there are a variety of beneficial applications for big data. Perhaps the most significant way big data can benefit your e-commerce venture is highlighting what areas you can target that will improve the customer experience.
Through proper collection and analysis, big data can help you better understand the needs of your current customers and point you in the direction of new customers. By making big data a part of your e-commerce business strategy, you’re demonstrating your commitment to customer satisfaction.
Sales Pop contributor Mary Grace recommends incorporating big data into your e-commerce ventures so you can use the information to develop a sales strategy that meets the specific needs of your customers. For example, big data can help you understand how frequently customers use your products and the reasons they are using it.
To start, make a data pool of all your customer information. As an e-commerce business, the data pool should include the times orders were placed as well as general contact information (address, phone number, contacts). You should also make a note of any other products your customers looked at. Was there something in their cart that they took out?
This kind of information can assist you in determining how best to expand your marketing campaigns, dictating future product development and revealing beneficial partnerships.
Of course, being able to make the most of big data depends on the type of data you’re collecting. E-commerce entrepreneurs need to recognize that the quality of the marketing data is more important than the quantity.
The importance of marketing data cannot be understated. Quality marketing data includes tracking where your website visitors originate, how long they spend on your site and what links they click. You can use this data to zero in on the best way to serve your customers, according to Maryville University. With the right marketing data, you will have a more well-rounded understanding of your customer’s shopping habits.
Since collecting quality data is so essential to improving the customer experience, e-commerce entrepreneurs should consider starting a loyalty program to better understand how their customers shop. Doing so can help minimize some of the biggest issues affecting data collection such as missing demographic information and inaccurate contact information.
Manage More Efficiently
In addition to improving the customer experience, big data can help you manage your team more efficiently. With the right information, such as quality address data, you can put your employees in the best possible position to succeed. Not only does quality address data make for smooth delivery and support billing, but it also provides valuable customer insight that can give your team the edge they need to reach a target audience, make a sale or provide top-notch customer service.
It’s no secret that customer service is crucial for retaining customers. One of the ways to use data and analytics most effectively is to establish high-quality customer service channels that encourage repeat business. According to Understanding e-Commerce, these channels can include live chat on your site, quick-response emails, and active social media profiles.
You’ll be able to see what is working and pivot your strategy accordingly. Using big data will help you to work smarter, not harder.
Because big data provides a deeper understanding of your customer’s needs, you can establish high-quality customer service channels that best serve them. In turn, you’re giving your employees the tools they need to provide a quality, personalized experience.
The more your team knows about your target audience the more likely they are to succeed in their position and achieve any goals (such as sales) that you’ve set for them. Big data can provide critical insight.
Surpass the Competition
Big data can also provide critical insight that will help you surpass the competition. Rather than reinventing the wheel, e-commerce entrepreneurs can use big data to analyze how their competitors are branding themselves and adjusting their own strategy accordingly.
Appnovation acknowledges the formidable pressure brands are under to stand out and provide a unique experience for consumers. From seeing how competitors are using new technology to interacting with customers to analyzing their social media reach, using big data is instrumental for e-commerce entrepreneurs hoping to capture the attention of consumers amidst all the online noise in this mature digital age.
If you’re an e-commerce entrepreneur struggling to find where to focus your efforts, analyzing big data from your competitors can help you shape your own business strategy based on the mistakes the competition is making. Similarly, big data can shine a light on industry trends that you might want to make a part of your overall strategy.
Without a doubt, the effective use of big data should be a part of every e-commerce entrepreneurs’s overall strategy. From helping business owners surpass the competition to improving the customer experience and managing more efficiently, big data can benefit e-commerce ventures in a variety of ways. Above all, properly using big data puts understanding your customers’ needs at the center of your e-commerce business strategy. When incorporated into your approach, big data can lead to big ROIs in your e-commerce ventures
Luke Smith is a writer and researcher turned blogger. Since finishing college he is trying his hand at being a freelance writer. He enjoys writing on a variety of topics but technology and digital marketing topics are his favorite. When he isn’t writing you can find him traveling, hiking, or gaming.