Big Data and Analytic e-Commerce

Big data has so much potential to improve our daily lives which is yet to be utilized.

One clear domain we can expect to be impacted is that of online commerce and the digital business. Both customers and merchants can expect varied implications of analytic e-commerce on their trade. Here are some initial thoughts.

Search (less) and buy (more)

250-500 million searches are ran on eBay everyday. Each search has a final destination and that is buying “something”. Let’s assume eBay will have a system that will be able to analyze users' searches and bring them one search closer, or even just one second earlier, to a buying decision.

Let’s assume big data analytics will be able to save eBay just one second on each search, guiding their customers to their target purchase faster. Not only would that single second save 100,000 customers hours a day (making customers happier), but it would also significantly improve chances of a customer reaching a buying decision.

Let’s take another giant retailer. When I enter “HDTV” into BestBuy I get more than 123,000 results. A few of them are shown as a “best match” on the resulting page and I can then continue on to subsequent pages of results. But what does BestBuy know about ME that makes THEM consider it a best match. In other words, what data do they use to bring me closer to an order decision? Do I love gadgets? Do I have a big living room? Do I pay close attention to online reviews and ratings?

In reality, most merchants will never reach the amount of traffic giants such as eBay and BestBuy generate, but the logic stays just the same, almost regardless of size: big data analytics will allow for a faster, more accurate and more relevant connection between a search and a buying decision.

I like to think of it as “the mentalist machine”. It really is about reading my mind and offering me, the customer, the best next action to take.

It’s all about versioning and personalization

In the analytic e-commerce world, one key differentiator of a digital business is its ability to make a better data-driven decision in selling the right thing, at the right time, at the right price, for the specific individual customer.

Data can drive different versions of the goods or services sold, personalize customer care and even provide different pricing for different customers.

The potential for technological innovation

Hopefully, some of my readers will get much richer in the next few years as they become part of new startups supporting this potential with cool technologies. We do see significant developments on all supporting levels. From faster flash-based storage arrays (and even newer storage concepts), to Hadoop fast growth and new advanced analytic solutions. Yet, technologies that will be able to drive (much) more value out of the data are the ones we are in most urgent need for.

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You might want to read my previous LinkedIn insight:

• Israeli e-commerce merchants are lagging behind Israeli consumers

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