If a company can anticipate what its customers want, why they want it, when they want it, how much they can pay for it, and deliver it satisfactorily, a good part of optimizing the business and maximizing sales has been covered. And with Big Data, this scenario, which may sound idyllic, is possible.
The world is currently going through a new industrial revolution, led by digitization and technology, and one of the main elements that feed them is information. Virtually any interaction in the digital world leaves a trace, a mark that can be traced and that, once analyzed, is an invaluable input to know a specific individual.
This is where Big Data comes in. One way to define it is to manage and analyze vast amounts of information or data that conventional software systems cannot process because the volume of data exceeds its algorithmic processing capacity. In other words, specific plans must be created to be able to process all this information.
The origin of this data can range from simple information such as form data, through emails, audio files, digital images, camera sensors, and survey data, to name a few sources. The objective of Big Data is to transform this entire set of data, which may or may not be structured, into accessible and valuable information for decision-makers.
And although large companies had been handling large volumes of information for a long time, the evolution of technology gave access to a more significant amount of data, so they were forced to create tools to analyze it.
Today, Big Data plays a fundamental role in different business aspects, including knowing people’s purchasing habits, needs, characteristics, and other data to optimize a business, including its electronic commerce.
And although Big Data can be used for dozens of disciplines or business areas, which can range from medicine, automotive, architecture, engineering, and security, among many others, electronic commerce is one of the branches in which it is most beneficial. Can draw, even for small businesses.
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Thanks to all the information on the network about each individual, with a robust Big Data system, a company can structure the profile with the purchasing habits of its customers, with simple data such as demographics, even those that give more detail about each one as the average value of each purchase, its geographical location, the time at which it connects to visit the electronic commerce, the display time of each product, cart abandonment, the means of payment used, estimate the other individuals who interact with the subject at home, among many other data.
For example, there are marketplaces that, with the information mentioned and additional data, configure a client’s profile in such a detailed way as to create a credit risk profile and know if said person is an excellent subject to receive a line of credit, by the marketplace.
Below are four elements that detail the importance of Big Data for e-commerce:
Electronic commerce has become a necessity in business to the extent that Internet access has been growing, coupled with other factors such as the pandemic. The vast majority of companies know it; the competition is high.
Through Big Data, a competitive advantage can be gained by defining the most appropriate sales strategies for the business that target the right target audience. Systems that can also be customized which has become essential in ecommerce. You can also know how the competition acts to differentiate yourself positively and your consumers’ expectations.
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To say that infinity increases sound redundant, but with the amount of information available on the Internet today, it is as close to reality as possible. Every day there are more devices capable of providing information that determines people’s behavior.
The next step in the available data revolution is with the arrival of 5G networks and the Internet of Things (IoT). 5G networks allow data transmission between 10 and 20 times faster than 4G networks and allow the connection of more devices; therefore, there will be greater access to information.
When an element such as a refrigerator to generate data is added to the transmission speed, it is possible to know how often a person replenishes the ketchup in his house.
With Big Data, all this data, which continues to emerge, can be tracked, accounted for, and used to make strategic decisions within the business. Without a doubt, those companies that know how to follow all the traces that their clients, and potential clients, leave in cyberspace are the ones that will be one step ahead on the constant path to success.
A person’s behavior today may differ from six months ago, and the same goes for their buying habits. The digital transformation also influences the behavior of consumers, who every day have access to more information, ideas, and all elements that can affect their decisions.
Also, every day the interaction between companies and their customers is more significant, so the possibility of being aware of changes in their behavior is more accessible. Using Big Data tools, this monitoring can be done to determine if there are changes in customer preferences and predict behaviors that can directly impact the business.
Thanks to Big Data, you can get to know what people think about each business and how they react to the actions taken within it. One of the tasks of Big Data is precisely to offer accurate data on the interactions that consumers have with the business platform to find out the areas for improvement.
Information has always been a valuable asset for business, and today it is imperative that complex data support decisions.
Big Data was initially considered to have three fundamental pillars, its three V’s: volume, variety, and speed. But over the years, two more elements have been added: integrity and value of the data. In other words, today, we can talk about five pillars that make up Big Data.
Two words that can encompass the advantages of Big Data within electronic commerce are optimization and personalization. The detailed knowledge that makes it possible to have all business areas, including the client, is a tool that allows you to stay ahead of your competitors.
Here are seven advantages that Big Data brings to e-commerce:
As has already been reiterated, Big Data is the processing of a lot of information put at the business service, and the logistics link does not escape it. Thousands of data can be collected to make the logistics process more efficient and provide a better user experience.
Among the five aspects in which Big Data can be applied within logistics are:
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