1.92 billion global digital buyers giving rise to 13.7% of retail sales worldwide make one of the most lucrative business propositions. As businesses outstretch competition of e-commerce business intelligence, the added benefit of customer analytics tools is rising to be the next dimension of competition. Companies have a clear intent of practicing behavioral analytics. A great zeal for offering a rich customer experience has made a premium USP out of it. e-commerce analytics tools are massively helping e-commerce business owners looking for Magento Analytics and Analytics for Shopify.
The two major lanes of e-commerce are contributing towards greater volumes of business and also opening up gateways for better CX. Now businesses are going the extra mile to incorporate the best analytics-driven business products by leading analytics and AI cloud service providers. The scarce expertise and a mature business-driven approach towards the incorporation of AI and practicing agenda-driven analytics is a problem of plenty.
Third-party analytics & AI cloud service providers are exploring the opportunity quite convincingly. Leading analytics & AI Cloud service providers are building retail-based business products that are offered through their native cloud. One great example of the same is machine learning as a service (MLaaS). Different business intelligence platforms have been trying to find concepts of a similar spectrum to the driving force underneath. It is expected to conquer the markets very soon.
The importance and capabilities of analytics are pretty evident with the rise of artificial intelligence. But how they improve the e-commerce landscape is a matter of understanding and depends upon the vision of e-commerce business owners. Here are 5 handpicked ways analytics can help e-commerce business owners.
5 Ways Analytics Can Benefit E-commerce Business Owners in 2021
Market Basket Analytics: Ship Before You Shop
One of the premium forces spearheading e-commerce business is the widely used technique of market basket analysis. Items are tagged with certain attributes and business intelligence software analyzes them every time they enter the customer’s basket. Furthermore, e-commerce analytics tools analyze the check-out probability, time spent after adding them to the cart, related searches, and the history of customers’ carts is taken into full consideration. In simple words, it is a 360° full cart analysis that constitutes the best analytics for e-commerce in the customer space.
Recently, Amazon was in news for testing out a new concept called ‘ship-before-you-shop’. In this, they were reported trying to ship certain products that are repeatedly added to the customer’s cart. It is predicted if there will be a successful checkout and payment will be successful or not. It means that even before you order a product online, it starts traveling to the nearest fulfillment center. If the idea comes into full swing and is properly adapted by the logistic resources, it will drastically reduce the wait-time after ordering, optimize logistics costs, and also improve the customer experience in the competitive e-commerce industry.
Predictive Enhancements In Pricing Models
E-commerce and M-commerce are like two sides of a coin flipped by aggressive and super dynamic pricing of products. It is mainly driven by customer analytics tools, demand and supply rules, and most importantly the customer behavior while online and searching for products. E-commerce giants use the best e-commerce analytics tools to predict the prices of certain products in the long run.
Time-series analysis is one of the primary techniques used for optimizing the pricing models against numerous factors. Successful e-commerce stores use the best e-commerce analytics tools to optimize their full-fledged pricing models based on factors like availability of products, season, time of the year, and customer behavior across a 24-hour cycle.
Suggestive Search: The Game of Relevance
Have you ever wondered, what is the hidden motive of introducing product review and rating mechanism? On the surface level, reviews and ratings allow users to confidently buy and order products by being more and more informed about:
- Brand credibility
- Personal user experience
- Precise information about attributes like fit, size, color, type
The deeper objective behind introducing the review rating model is to quantify the ‘relevance’ of every product concerning all customers’ accounts. It is a highly reliable and widely used mechanism that helps e-commerce business owners suggest products very similar to the ones you have searched or casually browsed. These are the same products that show up on your mobile app notifications, side ads, and third-party ads while you are browsing any other pages over the web.
Customer Behavior Analysis
Intending to offer a better, more personalized online CX, customer behavior analysis plays a very important role. Analysis of data points like:
- Search patterns
- Mobile app runtime,
- Customer interests
- Frequency of ordering
- General affordability
- Offers and discount acceptance
is helping e-commerce businesses rollout effective campaigns, optimize profitability, and drastically slash down customer bounce off at all points of time during the user journey.
Optimized Supply Chain Management
360° digitalization of business is helping e-commerce in various ways. One of the most effective ways is through the optimization of supply chain management. Earlier e-commerce businesses faced a great challenge of storage and warehousing all around the year for a wide and deep pool of products required by various types of customers. Now e-commerce analytics tools perform analysis over shelf-life, patent, sales growth, and earliest possibilities of knocking down a product from the warehouse after it is ordered.
Analytics also take into account the bulk pricing trade-off while e-commerce businesses buy major products that make volume business. Ultimately optimizing the supply chain means that e-commerce business owners can reliably use data-driven decision-making processes that help them determine what to store, stock in what quantities at various points of time during the year.
In a Nutshell
E-commerce is one of the wildest competitions in the digital world and businesses are leaving no stone unturned to take the help of digital tools. Leading analytics & marketing AI cloud service providers are coming out with back-end analytics packages and digital business products that will help you be more productive, profitable, and perceptive in the eyes of customers. At the same time, the value of brand creation and human capability should not be neglected as it forms an ad-on bonus to several types of predictive and descriptive analytics that are keeping the force behind e-commerce in 2021.
If you are still wondering whether or not data analytics is meant for you, take Wigzo’s Free Trial to see if how you can leverage it to make the most out of big data.