How big the big data is? As estimated, by 2020, every human being would generate 1.7 megabytes of data every single second, which will amplify the volume of big data from 4.4 zettabytes presently to 44 zettabytes in 2020, and 180 zettabytes in 2025! So why would any industry miss the opportunity to mine this big data and extract the immense potential this technology holds. While every industry is racing to leverage the power of big data, the e-commerce industry is certainly leading the race.
The businesses in the e-commerce industry are using a data-driven approach to provide a personalized experience to their customers. They are decoding the shopper behavior and using the digital footprints traced back by their generated data to forecast the future needs and demands. And that’s not all. There are many more ways in which big data is impacting e-commerce in 2018. Let’s read on to know how big data is impacting e-commerce in 2018.
- Big Data Is Effectively Securing Online Payments
The payment industry is benefitting tremendously by adopting the big data-driven analytics. Security in e-commerce online payment has always been a top concern for the businesses and marketers. In 2018, big data is all set to wipe away all these risks related to online payments in e-commerce. Big data helps in integrating all the disparate and complex functions like credit card payment, debit card payment, online banking, payment wallets etc., of payment platforms into a centralized one. It is also enabling the e-commerce providers to detect any type of payment fraud in real-time and build historical data to proactively identify any risk. Big data, with various behavioral, temporal, and spatial techniques, is also helping the e-commerce merchants by granulating the attributes for assessing risk scores of any online payment or transaction in real time. Not just that, big data is also enabling the merchants and businesses to detect any payment money laundering that can be disguised as legitimate payments.
- Big Data Is Enhancing Personalization
Mining the big data has enabled the customers in personalizing the experience offered by e-commerce merchants to its customers. Big data enables the merchants to analyze the customer behavior and weave an experience around that behavior. According to a research by Econsultancy, 93% of the companies saw their conversion rates soar high after they used personalization in their marketing. In fact, nearly 74% customers yearn for a personalized experience and feel frustrated when treated otherwise. Big data like location, shopping behavior, discounts used, preferred products, the frequency of purchase etc., is facilitating the e-commerce marketers and businesses to provide product recommendations, send push notifications, etc., for personalization in 2018.
- Big Data Is Analyzing Shopper Behavior
Big data is nothing but the millions of bits of data surrounding the customer behavior; by analyzing this behavior, e-commerce merchants and marketers can forecast the future demands. By mining the data from the online purchases, marketers can predict which product is going to be in demand, when the customers are returning to purchase, what other products they may potentially buy at their revisit, and how much time they’ll take in making this purchase. Through big data, e-commerce merchants are analyzing the shopper behavior and performing predictive analytics to boost conversions and upsell their products in 2018.
- Big Data Is Retaining Customer Through Dynamic Pricing
Big data is playing a key role in customer retention. It is assisting the e-commerce retailers in retaining the customers through dynamic pricing. Big data can be used to analyze the persona of the shopper and identify their spending capacity. Data analytics is being used by businesses to create a flexible pricing for every individual customer and send notifications regarding discounts, limited period sale, buy 1 get 1 offers etc., to lure them into making a purchase.
- Big Data Is Optimizing Customer Service
2018 is the year when customers desire a red carpet treatment. More than 89% customers refuse to visit an e-commerce site once they experience poor customer service. Big data is enabling the businesses to optimize their customer services by addressing the concerns instantly. It is helping the e-commerce businesses in streamlining the contact process, resolving the customer issues, and helping them quickly find the answer to their queries. This big data is assisting the businesses in creating a 360˚ view of the customer and empowering the customer service teams to enhance their services. By predictive monitoring, done with the help of big data, businesses can identify and resolve any query before the involvement of any customer itself.
- Big Data Is Evolving Mobile Commerce
Mobile commerce is on the rise. With customers as well as search engines inclining towards mobile phones, businesses are turning to big data for seamless mobility. M-commerce would be an absolute necessity to stay competitive and ensure prosperity and survivability of business. These smart mobile phones are embedded with millions of micro sensors that are generating data. Businesses are relying on this data to stimulate innovative business ideas, find new business opportunities, tap on mobile shoppers, and accelerate the business transactions. Big data in mobile is enabling mobile CRM for the organizations. Businesses are collecting and analyzing this mobile generated data to know the location, age, preferences etc., of the shoppers for increased conversions.
Big data is revolutionizing the world and the e-commerce industry is leveraging its power to cater the growing needs and demands of the customers. In fact, big data is also counted among the 5 B2B e-commerce trends for 2018 that the top businesses are following. It is offering personalization, online payment security, customer service, mobile-commerce, dynamic pricing, and predictive analysis to provide the best customer experience to all the shoppers. No doubts, the e-commerce retailers and merchants are turning their attention to big data to gain a competitive edge in 2018.
Ankit Gupta is the head at ExportersIndia.Com, a leading B2B portal in India. He has helped many of young entrepreneurs to raise a successful startup. His experience and research on the start-up culture have enabled him to jot down such insightful thoughts. You can follow Ankit on his LinkedIn, Google+ and Twitter handles to read other blogs written by him.