Big Data Analytics: Turning E-commerce into A High Performance Machine

So why is Big Data analytics creating so much hype?

In the words of Peter Sondergaard, Senior Vice President, Gartner Research, “Information is the oil of the 21st century, and analytics is the combustion engine.” 

Big data analytics is the process of examining big data to uncover hidden patterns, unknown correlations and other useful information that can be used to make better decisions. With big data analytics, data scientists and others can analyze huge volumes of data that conventional analytics and business intelligence solutions can't touch. Consider that your organization could accumulate (if it hasn't already) billions of rows of data with hundreds of millions of data combinations in multiple data stores and abundant formats. High-performance analytics is necessary to process that much data in order to figure out what's important and what isn’t. (Source: SAS)

According to a report by IDC, digital universe will tend to double itself in every two years and by 2020, the data created and copied will reach the mark of 44 zetabyes or 44 trillion gigabytes.

Use of Big Data Analytics in E-Commerce

Big Data is being utilized in various sectors. Let’s have a look at the way E-Commerce landscape is getting changed by Big Data Analytics.

As far as data in E-Commerce is concerned, it is divided into categories - structured and unstructured. Structured data is that kind of regular data which organizations have easily captured, i.e. name, address, age, gender and preferences. Whereas it is the unstructured data that is regarded as more valuable piece of data, such as clicks, tweets, likes, etc. The major challenge that comes across is how to make use of unstructured data and turn insights into increased conversions.

Big Data and e-Commerce Application

When it comes to adopting Big Data, E-Commerce companies are among the fastest adopters and seekers of Big Data Analytics Solutions.

So, how are these organizations utilizing Big Data Analytics to stay atop their game?

Personalization

Companies often find themselves tackling with an issue of enhancing and personalizing each customer’s experience at scale. Here, personalization can assist companies in increasing their conversions.

 
According to a research, personalization is able to increase life sales up to 10% or more and deliver 5-8x ROI (Return on investment) on marketing spend. (Source: Harvard Business Review)

Enhanced Customer Experience

E-Commerce is making use of analytics to improve user experience. Organizations are conducting a close analysis of purchasing patterns of each customer and enhancing the customer experience. Companies are improving processes after analyzing data from customer service call. Clavax is an Ecommerce Web Development Company that aims to utilize Big Data to improve customer experience in ecommerce.

 Predictive Analytics

Predictive analytics using Big data is able to predict what the customer is likely to buy. Moreover, it empowers an organization to foresee external events and its capability to adapt to that environment.

Managing Supply Chain using Data

There are a lot of moving parts, such as logistics, vendors, delivery, warehousing, etc., that E-Commerce companies are dealing with. In order to manage such process, different E-Commerce companies are developing effective systems while using analytics. Companies are utilizing Iot (Internet of Things) to gather and communicate on a vast array of conditions and improve supply chain intelligence.