3 Ways E-commerce Retailers Can Leverage Data Analytics to Thrive Amidst The Pandemic
Snippet: Now is the perfect time for e-commerce retailers to use data analytics to maximize profits and grow their business. Here’s why.
The COVID-19 pandemic has caused a significant rise in the number of e-commerce users as more people prefer to shop online for safety reasons. In fact, it is predicted that there will be around 2.14 billion digital shoppers by 2021, and the number will continue to increase.
Aside from the obvious safety issue, one of the key reasons why people enjoy online shopping is the convenience of being able to shop 24/7, easily compare product prices, and save time without having to leave the convenience of their homes.
As a result of this development, e-commerce brands have to deal with an influx of customers during the pandemic along with various supply chain complexities due to various restrictions imposed by the government. This is why now is the perfect time for e-commerce retailers to use data analytics to maximize profits and grow their business.
Predicting upcoming product trends
Imagine being able to identify what and when a product is going to be a top-selling product — wouldn’t that be every retailer’s dream? When supported with the right data analytics tool that can analyze browsing or historical data and create an accurate forecast, brands can eliminate guesswork when it comes to upcoming product trends in specific categories.
By doing so they can ensure that they purchase the right amount of products at the right time. Minimizing the chances of keeping dead stock that can weigh heavily on their cash flow — which can make or break a business during a crisis.
Personalized product recommendations
According to a report by Barilliance, the e-commerce industry gained 31% of its revenue from personalized product recommendations. This shows how important it is for online retailers to collect their customer’s purchasing history, and make a personalized recommendation based on that data. Aside from driving profit, it will also provide more value for the customers which will help build a trusting relationship and brand loyalty in the long run.
Optimizing product prices
Identifying the optimal product price point is crucial for retailers, however, most companies struggle in doing so as they have to sift through all their data manually. However, with the help of a data analytics tool like SYCARDA, retailers can identify patterns in their data and figure out different factors that affect pricing easily.
This will ultimately help them reveal the pricing “sweet spot” for each customer segment, allowing them to build a more refined pricing strategy.
The future is in your data
For e-commerce retailers, the way forward after the pandemic will depend on their data and how they leverage it to embrace changes in consumer behavior — and SYCARDA can help them achieve that.
SYCARDA has helped hundreds of brick-and-mortar and e-commerce businesses around the world drive business growth. Now it’s your turn to reap the full benefits of data analytics. Reach out to us today!