DATA ANALYTICS & E-COMMERCE

In the new world where technology is developing rapidly, data is gaining importance. Data analysis, besides being a method that makes use of many different disciplines, is mostly associated with the science of statistics. 

What is Data Analysis?

Data Analysis is defined as the modeling process that supports useful data finding, conclusion and decision making processes as a result of collecting, extracting and processing raw data.

Why Data Analysis Matters?

Performing data analysis allows businesses to review and optimize their own performance. If it is applied to the business model after performing data analysis, the cost will be greatly reduced.

Data Analysis Benefit

• Thanks to data analysis, business have the ability to make better decisions, so increase productivity in the company.
• It enables the business to see that it reflects positively to customer with correct analysis.

Why data analysis is important for E-Commerce and how it is used?

Big data analytics has been used by E-Commerce companies mainly for focusing on targeted customer group, measuring campaign`s effectiveness, also providing competitive advantage during high season. 

Thanks to data analysis, E-Commerce companies can deeply analyse their customers and products, like what kind of products do they tend to purchase, which products have been sold the most, or those who have purchased this product have purchased these products. And these approaches lead customers to buy new product and spend much more time in website. For instance, “Amazon’s product recommendation engine drives 35% of cumulative company revenue” (Arnold, 2019).

In e-commerce sites, data analysis is used not only for selling, but also for understanding the customer. It is also very important for analysing metrics such as determining the source of negative comments/review or how long the negative situations are resolved. According to study by Salesforce, "72% of customers will share their good experiences with others" (McGinnis, 2019).

References:

Arnold, A., 2019. Here's How Data And Analytics Can Benefit E-Commerce Business Owners. [online] Forbes. Available at: <https://www.forbes.com/sites/andrewarnold/2019/01/04/heres-how-data-and-analytics-can-benefit-e-commerce-business-owners/#534723b81460> [Accessed 21 May 2020].

McGinnis, D., 2019. 40 Customer Service Statistics To Move Your Business Forward. [online] Salesforce Blog. Available at: <https://www.salesforce.com/blog/2013/08/customer-service-stats.html> [Accessed 21 May 2020].