Over the last few years, the e-commerce industry has grown hugely around the world, including Indonesia. Thanks to the ever-evolving advanced technology, it is now easier for entrepreneurs to build their own online stores or businesses. On the other hand, that also means there is more competition than ever. That being said, it is now clear that improving sales conversion in e-commerce has become very challenging.
But when there’s a challenge, there’s also an opportunity to improve your e-commerce business. Through increasing the conversion rate optimization, you can achieve more than your expected profits. This is where big data analysis will come to your rescue and help to increase the sales conversion on your e-commerce website. Big data is a vast collection of data that is collected from various traditional and digital sources. It’s a source of interpretation of consumer behavior.
That being said, by using big data, you can get access to fact-based data about your customers. It will allow you to create better, more targeted products, services, and even marketing strategies. This is how big data can improve sales conversion in e-commerce.
Retention program based on customers data
Big data has become a gold mine for business players, especially those who work on the digital platform. In the e-commerce landscape, the main goals are to have a better understanding of forecasting and to improve sales. Big data allows e-commerce to predict what kind of problems that might arise in the future, thus they can take immediate action to prevent such problems.
In Indonesia, one of the popular e-commerce platforms that use big data is Blibli. Big data has helped Blibli to see on which days customers are more likely to make purchases. Once they get the data, they will use it to create targeted promo. If you’ve shopped at Blibli, then you’ll know what we’re talking about. Blibli has this thematic promo for its customers, such as Monday’s Mom Day, Kamis Ganteng, and Rabu Cantik. Turns out these promos are actually the outcomes of big data utilization.
Blibli’s big data implementation is actually aligned with what Retention Science says: with more data collected from customers through various touch points such as visitor browsing patterns, loyalty programs, and past purchase behavior, e-commerce companies like Blibli can process this information to carry out customer segmentation. This allows them to push out personalized content and promotions.
Increases customer responsiveness
There are many factors that play important roles in improving e-commerce sales conversion. One of them is how well your e-commerce website responses to its visitors. According to a research by the Aberdeen group, responsive websites have increased the visitor-to-buyer conversion rate of up to 11% as compared to non-responsive websites.
Thankfully, big data can help you maintain a highly responsive website by using a nonrelational database that gives the accurate prediction of future customer activity. If you haven’t used big data at all, it’s time for you to jump on the bandwagon since apparently, 44% of marketing analysts are using big data to improve responsiveness. Also, more than 36% of them are using data mining to achieve better customer insights that can help them plan more customers-targeted strategies.
Reducing shopping cart abandonment
We’ve all been there before: we shop at an online store’s website, we click “add to basket” button for each product that captures our heart, but we end up not completing the transaction. This is called shopping cart abandonment. It has become one of the biggest pain points for e-commerce businesses and could affect sales revenue significantly.
There are various reasons behind shopping cart abandonment. Some of them are unexpected costs at the checkout (such as shipping or handling fees), indecision about purchases, lengthy shipping times or costly return fees, and complicated, hard-to-use checkouts.
You can take advantage of big data to reduce shopping cart abandonment rate and improve your conversion rate. Start by analyzing where in the checkout people get to before they abandon the cart to see if there are one or more particular issues that might be turning people off. Once you find out, you will be able to use the information to provide offers to shoppers and encourage them to complete the transaction. You can offer them a discount or a free shipping.
Did you know you could track the course of a consumer’s buying journey across multiple devices using a cross-device tracking? This cross-device tracking is available due to big data, too. Most people call this as re-targeting method. Simply put, re-targeting enables you to repeatedly deliver relevant content and advertising messages to shoppers as they browse online on your website.
Usually, many consumers conduct research on up to 3-5 different devices before finishing a transaction. According to Data Science Central, this repeated contact during a consumer’s transaction between devices can help to boost conversion rates as well as reduce shopping cart abandonment rates.
Suggests relevant product recommendations
It’s extremely important for the customers to have a personalized shopping experience on the e-commerce website. According to a research, if you use big data analysis to its full potential, you can increase your sales by 60%. Big data will help you understand your customers better so that you can have a customized one-on-one service with them. Not only does it reassure the customers that they are being taken seriously, but it will also help you create a more targeted marketing strategy based on the interest of the buyer.
For example, with access to data about customer’s interest, you will be able to suggest relevant product recommendations. This way, there is a lot more chance for the lead to convert into a successful sale. Basically, big data monitors consumers online activity to predict their next action. By understanding their profile, big data offers relevant suggestions to the customers, ensuring higher conversion rates for the e-commerce website.
As we said before, Big Data is a gold mine that could actually help any businesses to grow, especially in the e-commerce industry. The information provided will give you an insight into customer’s behavior and buying process. Use big data intelligently, analyzed it accurately, convert it into actions, and your sales conversion will improve nicely.