“Big data” is a buzzword commonly thrown in a lot these days. Whether you’re running an eCommerce business or brick and mortar retail, you may have heard that big data may give you a competitive advantage to improve your customer experience, conversion rates — and ultimately increase your ROI.
If you do not understand your target audience and your buyer persona, how can you meet their needs? One of the reasons consumer insight analysis matters so much in an organization is understanding the above. It reveals multiple things, such as people’s opinions about your products over time and where you stand in the competition.
Below we tackle four valuable insights that big data uncovers, from shopping behaviors to supply chain management. But let’s begin by appreciating its growing importance.
So, What Is Big Data and Why Do You Need It for Your Business?
Big data refers to a massive volume of diverse, fast-growing data and challenging to process through traditional means as its mostly unstructured as 93% of eCommerce data is generated by users (UGC_ from online reviews, customer surveys, social media platforms, support tickets websites, app reviews, and more.
But what counts at the end of the day is how big data is applied to make informed decisions— and it becomes precious when leveraged to generate insights for more satisfied customers and business growth, and yes, that includes small eCommerce businesses.
Here are the most important benefits of big data analysis for eCommerce:
- Identify and understand your target audience.
As much as we would like for everyone to love our product, it makes no sense to market to everyone. Big data provides you with insights into who’s consuming your content to identify your ideal buyer.
The data that you collect will also enable you to create a detailed persona. That way, you can provide personalized shopping experiences to customers.
- Gain a competitive edge with big businesses.
Just because you own a small business, doesn’t mean you can’t access big data. Of course, you can. Big data opens up a new world of small companies’ opportunities the same way it does for big players.
- Reduce business expenses.
Lowering costs in your business can increase profitability. And it doesn’t even have to entail sacrificing the quality of your product. Big data can enable you to make smarter decisions while maintaining efficiency.
Understanding Consumer Behavour
One of the essential things that big data reveals is consumer behavior. As an eCommerce business owner, you’ll want to know people interact with your brand. Big data can help you figure out the answers to these questions:
- Do customers demand a product more during specific times of the year?
- Which items do they usually search for and add to their shopping carts?
- Did a product meet their expectation after successfully buying it?
- How do they choose one brand over another?
Understanding people’s behaviors is vital, especially that they change over time. Big data gives an eCommerce business the power to anticipate a consumer’s next move and adapt to it.
Quality of Customer Service
Repeat customers create a thriving business. It’s not enough to sell an excellent product, it’s especially true now that people can quickly look for other options.
To start with, customers want the person on the other end of the phone to respond on time, pay close attention to their requests, and be proactive. Indeed, quality customer service breeds loyalty.
Not many companies are aware that big data can be harnessed for better customer service. Even before interacting with customers, a company will be able to anticipate what they need. Customer feedback and messages on social media are also excellent sources of big data. They reveal weaknesses in a customer service team that can be turned into strengths.
How can you develop a meaningful relationship with your customers? The first step is to get to know them better. This is what big data does: It unveils information that will enable companies to create a rich customer profile. Now, they get to keep track of customers’ past experiences and tailor their promotions to that information.
For example, let’s say that some of your customers love your french vanilla coffee. It has become a timeless favorite. With that information, you could offer this group of people an enticing discount to boost repeat purchases and referrals.
Supply Chain Management
If there’s one lesson that the COVID-19 pandemic taught companies, it’s essential to increase supply chain visibility. Unfortunately, only a few companies have the information they need so they don’t operate blindly during a crisis. With big data, businesses will be able to get a full view of their operations and optimize their inventory.
In summary, big data is changing the way people run their businesses, big or small. It’s what you can do with the information you’re given that can make a difference. After all, a deeper understanding of your customer can transform engagement, customer service, loyalty — and take them to the next level.