via DATACONOMY: Almost everything we do, both online and offline, is a source for data. As technology increases, the ways to measure and collect data also increase. One of the ways we understand our world is to study trends in behavior.
The issue that people run into now, however, is that technology has expanded to the point where we have “too much” data. Organizing, studying and understanding this information has become even more complicated because we’re inundated with endless numbers, facts, percentages and perceptions.
Big data has been a buzzword floating around the digital space for a few years now, a concept that is murky to some and not understood at all by others.
So, what exactly is big data?
UNDERSTANDING BIG DATA
Big data is the combined collection of traditional and digital data from inside and outside your company. Its purpose is to be a source of analysis and continued discovery. The introduction of big data has allowed businesses to have access to significantly larger amounts of data, all combined and packaged for analysis.
This data offers insight for e-commerce businesses. E-commerce business owners can take the information from big data and use it to study trends that will help them gain more customers and streamline operations for success.
Here are five ways big data will continue changing the face of e-commerce in 2018.
1. INCREASED SHOPPER ANALYSIS
Understanding shopper behavior is essential for business success. Big data is an essential component of the process, and provides information on trends, spikes in demands and customer preferences. Business owners can use that data to make sure most popular products are available and being marketed. If customers visit your site to search for products you don’t offer, big data is how you will learn about those searches, helping you seize new opportunities.
In 2018, big data analysis will continue illuminating important shopper behaviors and patterns, such as popular shopping times and spikes in product searches.
During this year, you will see more e-commerce businesses fine-tuning their marketing strategies, social media advertising and intuitive shopping processes to continue boosting sales and engagement in a competitive market.
2. IMPROVED CUSTOMER SERVICE
Statistics regarding unhappy customers and poor customer service are alarming. For instance, 91 percent of unhappy customers will not willingly do business with a company if they’ve had a poor customer service experience. Focusing on customer service is crucial to the success of all e-commerce businesses.
Understanding your shoppers is important, but even more important is making it easy for customers to contact your business, resolve issues or find answers to their questions. Big data provides the metrics needed to see how quickly customers are able to complete these tasks.
Through this year, expect big data to continue offering ways to track customer service experiences, but also to add even more predictive monitoring. This will help online companies identify potential problems and resolve them before a customer even gets involved.
3. EASIER AND MORE SECURE ONLINE PAYMENTS
- Big data has a significant role in making online payments easier and more secure. Here are eight different ways big data is changing the e-commerce payment industry in 2018:
- Big data integrates all different payment functions into one centralized platform. Not only does it help with ease of use for customers, it also helps reduce fraud risks.
- The advanced analytics offered by big data are powerful and intuitive enough to discover fraud in real time and to provide proactive solutions for identifying risks.
- Big data can detect payment money laundering transactions that appear as legitimate payments.
- Recently, payment providers have started realizing the potential of monetizing merchant analytics. Payment providers can help different merchant retailers understand their customers better.
- Data analytics allows e-commerce businesses to cross sell and upsell.
- Push notification-generated sales act as an effective means to validate customer data.
4. CONTINUED ADVANCES IN MOBILE COMMERCE
The number of people who use smartphones is increasing every day, to the point where researchers predict desktop computers will soon become obsolete.
Big data makes mobility possible, especially when it comes to e-commerce. Brands can now collect data from multiple sources and analyze customers through mobile technology.
Google has jumped at this trend, giving preference to sites that are mobile friendly and responsive. Companies who do not have mobile friendly websites will continue to see a decline in traffic to their pages.
5. VIRTUAL REALITY ADVANCEMENTS IN THE RETAIL WORLD
Big data and virtual reality are two of the biggest technological innovations in the world right now, and their connection only enhances their effectiveness. Together, big data and virtual reality are revolutionizing the e-commerce world. They offer the tools needed for businesses to more efficiently present their brand, advertise and offer an evolving shopping experience for customers – right from the comfort of their homes.
Virtual reality can analyze big data and change actions based on its findings, often without the help of a human. We can expect to see even more virtual reality and streamlined shopping experiences soon, thanks in large part to big data.
The big data revolution has only enhanced the e-commerce process, making it easier for online stores to be successful and useful. For e-commerce store owners looking to get ahead, big data provides a wealth of tools needed to find success.
In 2018, e-commerce will continue to evolve with big data, taking online shopping to a whole new level.