There's no doubt that data analytics has become a vital part of running a successful e-commerce business. Analytics can help identify the right products to promote, monitor customer behaviour and uncover opportunities to grow sales. Understanding your customer better and knowing what they want can boost your sales and profits. Less than a decade ago little information was available about consumers. Today with high technology it is easier than ever to monitor customers and see what they look at, read or buy. It is a great way to figure out what they want and how to cater to their needs. With the right insights and the right budgets, some people have been able to use data analytics to make their businesses grow.
Here are some of the ways in which e-commerce sites use data analytics to convert their sales -
- Product Page Optimization - Product page optimization is a process that takes customer data gathered through online shopping and turns it into actionable insights for the business owner. PPO is one of the most cost-effective ways of driving higher sales and profitability for e-Commerce businesses. With increasing competition in the e-commerce sector, many entrepreneurs are looking at ways to optimize their existing product pages in order to improve conversions. Data analytics can then be used to make product development decisions, monitor market trends and measure overall unit productivity.
- Predictive Analytics - Predictive analytics can offer valuable insights into how to react to these variable factors in order to determine the most profitable strategies for your business. This is particularly valuable in cases where the price of a product or service is completely arbitrary and there isn’t really a way to know how much other customers are willing to pay for it. Data analytics can help identify price gaps and help determine which customers may be more price sensitive than others.
- Diagnostic Analysis - Diagnostic analysis can help solve root causes of performance issues. It explains why a certain behaviour occurs or how a customer conducts business. While the analysis may initially identify factors that can be changed, it usually requires the development of a more comprehensive set of information to fully evaluate the situation. The goal is to identify changes that will lead to improved performance and increased customer satisfaction. Advanced research using data analytics and actionable insights is a powerful way to solve problems and make decisions for your business. In the digital world this is more important than ever. Knowledge is power and having access to data allows you to do more with less. That is why data analytics is essential for growth hacking and e-commerce companies. Understanding your customer allows you to provide personalized service and increase sales. Knowing how users react to offers and promotions allows you to create a detailed profile of each person that comes into your store or clicks on an ad. This provides you with a better understanding of: Where are your customers moving? What products are selling well? How can you better communicate with these customers?
E-commerce data analysis is one of the most important aspects for entrepreneurs who wish to operate successful businesses online. If you wish to be successful in your own online business venture, then you must learn how to analyze and use data in an effective way. E-commerce data analysis has become an important part of almost every type of business.
For students who aspire to work in the field, the best choice would be to pursue an MBA in Business Analytics and Data Science. Companies are looking to hire MBA graduates from the field of Business Analytics and Data Science as they would be well-suited and qualified for these roles. Bengal Institute of Business Studies (BIBS) is the first MBA college in West Bengal that offers an MBA in Business Analytics and Data Science in collaboration with IBM. Students get access to Amazon Web Series (AWS) Academy where they can explore many cloud based programmes which have been designed in a way that prepares students to pursue industry-recognized AWS certifications along with careers in cloud computing.