Ways to Exploit Big Data for eCommerce
Big Data has been increasingly used by the eCommerce companies and this has become common these days. To stay competitive, the established eCommerce companies have started using extensive data sets that will help them to better understand their customers and thus provide better customer experience, product recommendations and services that will be tailored for each individual. For most online stores, therefore, it is sure that they have to use Big Data, however the only matter is what tools to utilize and how much to spend on them.
In this post, we will offer an overview of the Big Data solutions that most eCommerce merchants can utilize, along with their approximate cost for each option.
Hire Data Scientists
If you are an established online marketer, you can choose to go and hire people who will handle all your data needs. To make sense out of the customers’ data one needs to gather data, analyze them and present the results in such a way that you can find out certain trends that will help you to take action.
One person alone can’t handle all these tasks. It is better to have a well experienced team of data scientists who can take care of your data needs.
Building a whole team, right? What will this option cost? A data scientist make from $70,000 to $110,000 every year. This can be a heavy investment for small eCommerce marketers since it is difficult to get the return immediately.
Apart from these scientists you will also need other systems like scalable databases that are robust enough so that it helps the business grow. Also, you should be sure that your systems and processes can handle the increase in load. Every time spreadsheets don’t work. Thus, it is better that you hire someone to create a solid system that will help your business.
Outsource Your Data Needs
Another best option will be to outsource all your Big Data requirements. You can seek the help of a third party firm and let them work hard to get the numbers out for you and generate insights, so that you can focus on ways to sell products and develop sales, take care of your current customers and grow your eCommerce business.
Both for established and small eCommerce businesses, outsourcing is a more affordable option than hiring a team comprising of data scientists.
The cost incurred in this option depends mainly on the types of data you utilize along with the fact that how much information you want them to analyze. First, think of all those requirements that you want them to fulfil for you. Do you just want them to analyze your email subscriber list? Do they have to track on-site behaviours? Do they need to analyze your social media data as well? Consider all these and then find a company to fulfil them.
Several business intelligence companies focusing on analyzing social media conversations and data, generally offer monthly packages starting from $1,000 to $5,000. Such companies utilize analytics platform that is industrially proven and also includes a team of data scientists and professionals along with the core team. A quantitative marketing analytics package that includes Google Analytics, SEO services and managing AdWords may cost roughly around $4,500 per month. And analyzing, and reporting with the interactive dashboards might also cost around $4,500 per month.
Use Free/ Inexpensive Tools
Do it yourself route is the best option for startups and small merchants who are left out will limited budget. Tools such as Crazy Egg, Google Analytics and KISSmetrics enable you to track your visitors and customers, and create more effective campaigns that will help you to serve better. The only downside of these analytics tools, even though they are simple and affordable are that they are limited in nature. Due to this they may not offer enough insights that will help you to understand your shoppers on an advanced level. Also, you will face several challenges while creating campaigns that incorporate data from different sources like email, mobile and social media etc.
Still, to start with, using such tools will be good and much better than doing nothing.
Remember, the businesses that don’t take initiatives to understand their customer data will be left far behind in the competition. Do you want to lose your market? No? Then start identifying your core customers effectively and develop tailored individual marketing campaigns for them.