While brick-and-mortar stores still have a place in the modern world, more people than ever shop online. According to Statistica, online shoppers worldwide spent an estimated $5.7 trillion dollars in 2022. With that number expected to grow, it makes it more important than ever for e-commerce companies to embrace technology and harness the power of data.
1. Optimize the Shopping Experience
The rise of the internet and big data has changed nearly every facet of life. For shoppers, it has meant a slow evolution of how they purchase items as well as an increase in expectations. The unavailability of a certain style or color leads to instantly abandoning a cart and searching other retailers for the perfect item.
With so much data within reach, businesses have the opportunity to infuse predictive analytics into operations to help better understand customers and anticipate future behaviors. Technological tools give businesses insight into the number of clicks on a page, how long it takes to make a purchase and the average number of items added to a cart. Using that data, a business can create ways to minimize abandoned carts, upgrade the user interface to make it easier or create reward programs tailored to the key demographics of shoppers.
2. Enhance Workflows, Problem-solving Techniques
Although much of the focus lands on the customer and how they shop, any business also needs to look at the efficiency of its workflow. Many companies have turned to distributed tracing software as a solution. What is distributed tracing? At the base level, this software allows a business to track requests and other information in real time from beginning to end.
This technology can be applied to many different elements that help keep a business operating smoothly. If a company starts receiving reports from customers that areas of the website do not work or seem sluggish, a support team member can analyze the different traces generated to easily and quickly locate the problem. Additionally, it can help target bottlenecks or other hindrances, such as the length of a purchase, to optimize the process for a better experience.
3. Predict Demand and Trends
Whether a business has a storefront or does everything online, retail has always come with challenges. Keeping a pulse on supply, demand and trends often rank high. Businesses once needed to rely on gut instincts to determine which color might be more popular or which holiday will lead to the most sales. Analytics software takes the guessing out of the game.
Since every bit of data gets saved, a company looks at quickly and easily access historical data to more accurate forecasts. This data also helps determine the success of different promotions and its effects on demand. With access to this type of data, a business can better lay out a plan for the future while also having the tools available to make necessary changes in real time.
4. Improve Customer Service
To succeed in e-commerce, a business needs to have happy customers. Bad customer service can easily sink a company, especially with the power that social media holds. Incorporating technologies and automating processes ensure customers have access to the support they need at any time of the day. This software lets businesses customize the experience, allowing it to assign different parameters to elevate more serious concerns.
Along with a better connection with customers, a business also gets the benefit of collecting data from different customer service experiences. This data provides clear feedback on what may or may not work, further enabling more efficient and pleasant experiences for customers. Having dynamic customer service leads to more loyal customers, which results in generating more sales. Even with all the technology available, word of mouth still travels fast.
The modern world runs on data. Regardless of the industry, not using that data means taking on needed risks. Online businesses have tools available to turn that data into real change for success.
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