The digital transformation of the retail industry has increased speed to market, efficiency, and accuracy, across every sector of the business. In large part, these advancements are due to predictive analytics systems that are helping companies make data-driven business decisions.
There are several reasons for choosing BI solutions in the e-commerce business. However, the main reason why many companies use business intelligence is to turn data into insights and action.
As the main advantage of business intelligence is to deliver a vast amount of information and understanding regarding various market elements, businesses use this advantage by using it to take action on the knowledge provided by business intelligence software.
Ecommerce as we know is the buying and selling of services and products online. This includes transferring money and data in order to complete sales. Many consumers prefer to deal with e-commerce businesses because of the convenience it offers. As per the report, the e-commerce industry is growing 23% year-over-year. With the trend as we see, is increasing year by year, so the competition is becoming more intensive.
What is Business Intelligence (BI) in Ecommerce?
Business intelligence in e-commerce is all about providing e-commerce businesses with the ability to make proper judgments and decisions based on legitimate facts, statistics, and numbers, instead of guesses. For instance, an e-commerce business can use business intelligence tools to identify the number of customers that have abandoned their cart and analyze that data to understand the reason behind the customer’s behavior.
Benefits of Business Intelligence in Ecommerce
With the examples above, you may have developed a good understanding of what business intelligence is and how beneficial it can be. E-commerce businesses use business intelligence for various purposes. Hence, indicating how BI helped other aspects within the business may still be unsure because the organization may not be focusing on it. However, a survey conducted with multiple e-commerce organizations regarding BI included the following potential benefits of business intelligence. They were asked to indicate at what level they may have achieved those benefits while using business intelligence tools.
- Faster reporting, analysis, and planning
- More accurate reporting, analysis, and planning
- Better business decisions
- Improved data quality
- Improved employee satisfaction
- Improved operational efficiency
- Improved customer satisfaction
- Increased competitive advantage
- Reduced costs
- Increased revenues
- Saved headcount
BI is helping e-commerce companies to make quick strategic decisions. With the advancement of technology like Machine learning and Artificial Intelligence, BI software is self-sufficient with increasing popularity in e-commerce business.
BI is not always for big companies but can also be used in small-scale and e-commerce business enterprises. It helps them grow, understanding the factors like marketing, sales, and many more. BI tools gather and process a good amount of complex data to enhance a company’s strategic business decisions for future growth and development. Some of the recent trends in the e-commerce business comprise data integration, data usage, increased collaboration, better data storage, etc. E-commerce businesses that want to stay alert in the competition are implementing BI now, expecting easy-to-use tools, structured and data-driven answers, and ensuring the company meets staff requirements.
If you want to know more about our BI services that can assist in increasing your e-commerce business revenue, then do get in touch with us.