Nowadays, traditional businesses in physical spaces are taking a backseat as more online businesses are popping up on the scene. Unlike brick-and-mortar businesses which have limited space, online businesses can reach a global audience, skyrocketing their revenue and influence. As more online businesses are trying to stand out from their competitors, they are starting to employ various strategies such as utilising big data. In this context, let’s explore the advantages of using big data as an online business.
Defining Big Data
The concept of data storage and processing can be traced back to the rise of the early computers in the 1940s. However, the idea of big data came about when the internet revolution occurred in the 1990s. Big data refers to large, complex datasets you can’t analyse with traditional methods like spreadsheets and graphs. This data is characterised by its high volume, velocity and variety, often referred to as the "Three V's" of big data.
The Advantages of Big Data for Online Businesses
Data can help online businesses in many ways, but most importantly, it can help them identify new business opportunities which can generate more sales and create a better customer experience. For example, e-commerce sites can pick up information based on customer browsing and purchase data to suggest products that align with customer behaviour. Similarly, online businesses can gather information about how long a customer stays on a certain site or webpage, giving them vital insights into which products or concepts are the most popular, allowing them to create products that please purchasers.
Furthermore, organisations use big data analytics to identify patterns of fraud or abuse, detect anomalies in system behavior and thwart bad actors. For example, fraudulent transactions patterns can be flagged up such as several failed payment attempts, quick transactions or multiple purchases within a short space of time. By addressing and clarifying these issues, online businesses can protect their customers while also building trust with them, leading to repeat purchases.
Online casinos are one example of how big data can be used to target players and enhance their experience. By analysing data on which games players prefer, when they play, and how much they spend, online casinos can offer personalised promotions and bonuses such as free spins. There are a variety of online casinos offering promotions which you can discover only on casinos.com. By using big data, this helps to get the attention of new players but also retains existing ones by keeping them engaged and satisfied. For example, if one players has a history of playing slots games with an adventure theme in the evening, the casino operator can take this into consideration and suggest more slot games within that niche. This increases the chances of that player returning to the site because they don’t have to spend a long time looking for a new game. They also feel like their personal preferences and requirements are being looked after.
Big data also helps businesses develop accurate pricing strategies based on customer buying patterns and competitor pricing. This helps online businesses strike a balance with their customer base, avoiding underpricing products which makes them lose profit while also steering them away from overpricing which can turn away potential customers. By constantly tracking data, these businesses can adjust their prices according to customer and market trends, allowing them to stay relevant in a saturated industry.
When an online business is about to launch a new product, big data can also be incredibly useful. Instead of randomly launching the product with no indication of consumer interest, they can gather information about consumer demand and competitor activities permitting them to launch at the perfect time for maximum sales. For example, they can identify when a similar product is being launched and time it accordingly so these launches don’t clash.
Big data also plays a role in customer service as it allows businesses to take a look at previous customer interactions with chatbots and virtual assistants. By gathering data on past customer queries, they will be able to identify trends which could lead to them finding a common problem shared by their customers. By solving this, they could boost customer retention and contribute to overall user satisfaction.
Final Thoughts
Big data can be an asset for online businesses, allowing them to track customer behaviour, safeguard customers, offer personalised promotions, retain loyal customers, figure out the best time to launch a product and enhance customer service with chatbots. By using big data to their advantage, online businesses can increase their chances of attracting and retaining customers, boosting their chances of achieving long-term success. So, the next time you are buying something online, consider how big data is influencing your purchasing habits.
