With the rising popularity of digital business world, data is generated from multiple channels, making it extremely difficult to evaluate them and extract conclusions. However, analyzing data has become an essential part to leverage business significantly & gain a competitive advantage. Research says organizations that rely on big data-driven business strategy can gain insights faster for reducing costs and increasing revenue. Top brands like Intel has successfully made use of these from top big data analytics companies to analyze their data for advanced marketing & huge savings.
Following are the area where big data helps in cutting costs for enterprises:
Big Data plays a main role in tracking the buying journeys of customers through feedbacks or surveys submitted by users. This helps in correctly shaping the targeted campaigns with lower costs and a lesser chance of investment in failed marketing plans. In eCommerce business, some customers order products choosing COD option and cancel it at the last minute while some customers never receive their products due to failed delivery. Analyzing customer behavior can help in making useful predictions saving costs significantly.
Using big data along with supply chains help organizations to organize their inventories for the enhanced delivery services to customers. Amazon is among the several companies that use big data techniques to optimize their supply chain and offer an exceptional level of service. By making use of predictive analytics & big data, products are procured based on purchase history & demand, thereby lowering costs and time with the presence of more than 200 fulfillment centers worldwide.
As we know that the average cost of product returns may be around 1.5 times that of actual shipping charge, big data analytics can help in identifying the possibility of goods being returned. Companies will have an idea about the cities that have the most return cases or customers that frequently exchange products using big data, which will relatively help in cutting down the costs & expenses in logistics or transportation.
With analytics, organizations can gain actionable insights to avoid online fraud and detect locations where frauds are frequent. This information will help in informing companies about the locations where COD methods are not successful & thereby avoid falling prey to such situations & avoid losses.
Another use of big data in the eCommerce industry is to reduce marketing costs by increasing the marketers' ability to go for targeted campaign execution and keep more focus on making customer relationships successful. Since the manual process of examining customer behavior has become a hectic task, implementing analytics is a plus point to plan multi-channel marketing campaigns, which helps in making strategic business decisions at a lower cost.
It is clear from the above points that Big Data analysis holds a great potential in unlocking immense benefits to the eCommerce world including cost reductions, better customers understanding, strategic decisions, etc. As the number of digital users increases, organizations must leverage big data technologies to enhance customer retention rate & customer experience. If you are planning to start an eCommerce business, get in touch with the trusted brand that offers reliable eCommerce Website Development at an affordable cost. Make sure that you leverage big data to help your business succeed faster and smarter.