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Every single click in the online world generates data, and the amount of data we produce on a daily basis is staggering. And with an increasing number of devices connected to the internet, the volume of that data will continue to increase rapidly. As MarketWatch reports, the global big data market will reach $118.52 billion by 2022, compared to $23.56 billion in 2015. Since we’re producing an abundance of data, it would be a mistake not to harness it, and companies across all industries are already doing this. For instance, thanks to the collected data, e-commerce brands can gain valuable insights into consumer preferences and eventually boost their sales. In an increasingly competitive e-commerce environment, the more you know about your customers, the better.
E-commerce Companies Rely on Data to Understand Their Customers
Effective use of data is probably one of the reasons why Amazon is the biggest e-commerce brand today. This e-commerce giant relies on Data Analytics to predict which products customers are most likely to buy. Moreover, it uses customer data to identify at what time of day customers are buying the most. Based on this data, the brand is able to adjust prices accordingly and get more sales. In fact, during a 24-hour period, Amazon can change a product’s price up to eight times!
Amazon is great at turning data into a competitive advantage. In 2017, Amazon’s houseware sales increased by 20 per cent thanks to Big Data. Using Data Analytics, the company was able to identify millennials as its core demographic group. Amazon knew that millennials are entering the housing market, so they need houseware items that will save them time and effort, which is exactly what Amazon offered with its Instant Pot pressure cooker that quickly became its top-selling item.
Unlike Amazon, which likes to keep its customer data for itself, the Chinese e-commerce business Alibaba allows other brands to use its data to improve their products and services. Alibaba has a colossal database, containing information about consumer shopping behavior and patterns. By understanding this behavior, other brands can customize their products and enhance customer experience. To make this happen, Alibaba already joined forces with several companies, including the global beverage brand PepsiCo and the toy company Mattel.
How Did eBay Simplify its Data Management Process?
Although having too much data isn’t a bad thing, handling and organizing vast amounts of information is a complex process that requires efficient Data Management solutions. eBay is already relying on DataStax Enterprise. The company, which has over 170 million customers, needed an efficient system to process data at “blistering speeds”. Thanks to the DataStax platform they employ, eBay can transparently manage both real-time and analytic data in one database. The platform is able to store 250 terabytes of data and handle around “6 billion writes and 5 billion reads” per day. Besides the web, this cloud-based solution is also suitable for mobile and IoT applications.
Big Data is set to have a huge impact on today’s businesses. No matter what type of business you have, understanding your customers is crucial for further growth. And without proper data analysis, this is mission impossible. Since data enables companies to identify new opportunities and make wiser decisions, those who effectively use Big Data have no reason to fear their competitors.
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