In eCommerce data personalization has been a growing issue for years and the events of the past few months have fueled it further. For many managers, the main advantage of Big Data is the flexibility it gives SI’s to personalize the customer experience. This gives managers armed with concrete actionable data a better understanding of customers patterns. Still, according to the MIT Technology Review, businesses are currently not using 99% of data available to them. Personalization of the customer experience can only happen when a business has figured out what to do with this data. Decisions on the collecting, analysis and the management of this data ultimately proves consequential to tailoring customer experience. The cost reduction benefits are perhaps the most attractive for businesses.
Scaling Up
As companies scale up their eCommerce operations, companies will continue to accumulate data. Companies will have the flexibility and sophistication on how the data can be used. Managers must be mindful of GDPR requirements when gathering data. They must focus on specific datasets and keep the datasets as small as possible. For shopper analysis this is extremely helpful as it helps online merchants create accurate customer profiles. Consequently, this is used to identify consumer preferences and stock accordingly in real time. Managers can even exploit counterintuitive shopping habits that their competitors might not notice and address consumers.
New Industry Standard
At this point eCommerce personalization is a necessity as opposed to something seen as giving businesses a competitive edge. According to Annex Cloud more than 85% of shoppers say a personalized shopping experience encourages more purchases. This includes, personalized shopping recommendations, and communicating tailored discounts and special offers on time. Robust use of big data enables managers to gather metrics on consumer demand and competitor price. This allows for a more nimble pricing system able to capitalize on trends much quicker. Big data also allows for personalization for marketing teams as they result in targeted social media adverts.
Going Forward
The most obvious way to start the personalization process is by using the data to identify the most loyal customers. Afterward segment that group and identify their needs as soon as possible. This is why a sophisticated eye for data and asking the correct questions are crucial. Managers must then implement strategies that prioritize catering to these customers. For example, new products and initiatives can be released to this group for a limited time period. To further cement their loyalty and ensure customer retention, some managers offer these groups exclusive discounts unavailable to other customers.