How Can Big Data Help You Increase Conversions?
The world of online retail is a crowded and competitive arena. All sorts of factors can have a decisive impact on the success of your eCommerce platform. And it seems that big data tools are some of these elements.
After all, big data statistics say that the total worth of the big data industry will exceed $77 billion by 2023. Likewise, the world of online shopping is growing at an exponential rate.
So, how can you leverage big data technologies and increase conversions on your eCommerce website? Let’s take a look at some of the methods that could make you stand out from the rest.
Understanding the Importance of Big Data
In case you missed all the hype in the tech world, big data is a BIG deal these days. But what is big data in the first place, and where can you find it?
Well, the term “big data” refers to the colossal amount of information we produce daily. Businesses, as well as individuals, are creating massive volumes of data.
To be precise, statistics say that more than 750 new websites are appearing every day! Also, each of us creates 1.7 MB of data per second, which amounts to 2.5 quintillion bytes per day.
So, all of these bytes of data can be stored and analyzed. After that, data supply chains will deliver valuable information to the consumer. In this case, you and your business are the ones who can benefit the most from the use of this system.
How Will Big Data Impact the World in 2020 and Beyond?
As you can see, big data relies on a straightforward concept: collect as much information as possible and extract as much insight from the volume. Yet, this is easier said than done, and unstructured data amounts to 95% of the overall quantity.
In other words, it is necessary to classify the data and create functional data repositories. Of course, this process is well underway, and big data governance is gaining traction even as we speak.
Experts predict that 79% of companies will soon perish unless they embrace big data technology. For example, the total volume of the stored data will grow up to 44 ZB by the end of 2020.
Sooner rather than later, advanced software will be able to go through this mess and extrapolate useful information. As a result, the way we do business will change drastically.
The Benefits of Applying Big Data
So, how can big data software help you increase conversions? Is it even possible to monetize this data?
Believe it or not, big data tools are an invaluable asset when it comes to modern eCommerce platforms. Statistics show that data-driven insights can increase sales by 60%. Of course, the ultimate goal of any omnichannel retailer is to generate revenue, so why not use big data software to do so?
To illustrate this point, we decided to separate the potential benefits of using big data in a couple of areas. Therefore, let’s take a look at the elements of your online business that big data could improve in the upcoming period.
First of all, big data can help with gaining visibility and attracting a new audience. After all, big data contains information on billions of people across the globe, not just the ones who are your loyal clients.
In other words, the data-driven approach can allow you to increase brand awareness and boost customer acquisition.
Closely related to the previous point is the boost in the efficiency of your advertising campaigns. Big data software can provide you with valuable insights on how you should set up your marketing strategy.
If you focus on the appropriate target group, your marketing efforts will be rewarded with an increase in conversion rates.
The best way to increase conversions is to know your customers inside-out. With that said, big data systems are packed with all sorts of information on your clients.
In other words, these tools can let you know what makes your customers tick. You can learn why they buy certain products or when they do it, and so on. The art of selling is in the details, so make sure to pay attention to these elements.
Another crucial area of a successful business is constant self-reflection. Companies need to evaluate the results regularly and raise their game at every opportunity.
Well, big data tools can help you analyze customer feedback and pinpoint any area of weakness. For instance, cart abandonment data can provide business owners with lots of valuable information.
Pricing and Recommendations
A personalized approach is a must-have in today’s day and age. For that reason, it is essential to adjust the prices for individual customers. Of course, big data can help with changing your pricing policy to make your store as competitive as possible.
Likewise, recommendations of related products are a crucial component of every eCommerce business. Again, big data software can help boost conversions through the use of suggestions. In short, a data-driven approach will let you display relevant items and increase sales.
Last but not least, we should also mention the fact that big data technology already plays a massive role in warehouse management. Big and small businesses alike can benefit from the use of big data software.
In essence, big data tools can help with streamlining the delivery process or organizing the inventory. Either way, the positive impacts can be jaw-dropping.
Without a doubt, big data technologies are changing the world. The floodgates are open, and big data science is growing at a rapid rate.
Thus, businesses should grab the opportunity and boldly step into the age of knowledge. The more you know about your customers, the more visits you will convert into sales. It’s that simple!