Small E-com, Wanna Know Why You’re Failing?
In other categories, however, the numbers can be a little more difficult to predict. Increasing website traffic, for example. Or reducing cart abandonment. You may have little clue about how to predict what effect a business change would have on those goals. This is where a large trove of data is crucial in predictive analytics. The more data you have — both in terms of how far back it goes and how many metrics are measured — the more predictions you’ll be able to create.
To increase website traffic, you could combine data from social, content and email marketing efforts to assess how each campaign increases traffic. Then use that to find the number of campaigns necessary to reach your goal.
The Holy Grail: The Power of Knowing in Advance What Your Customers Are Going to Do
With advanced tools and a solid plan in place, you’ll be able to finally see into the minds of your customers. Soon, you’ll know their favorite products, style preferences, the name of their first pet, their childhood secrets and more. (Okay, maybe it’s not that powerful, but you get the point.)
Big data and predictive analytics will enable you to anticipate customer behavior, and even identify trends before they begin. This will allow you to make hyper-targeted marketing campaigns.
In addition, quantifiable data helps increase demand and create stronger consumer retention by enabling you to change pricing, inventory and marketing efforts in real-time to reflect the latest trends and changes in your industry.
By tapping into the power of predictive analytics, you’ll be gaining the same power as large e-commerce brands such as Amazon, Macy’s and more.
The Future of Predictive Analytics and What It Means for E-commerce Marketers, Going Forward
Predictive analytics will soon go from a competitive advantage to an absolute necessity (especially for e-commerce brands.) Top e-commerce brands, such as eBay, Amazon and others, have already been using predictive analytics to increase conversion rates, speed up the sales cycle, improve supply chain management, and make better business decisions. Now it’s time for small e-commerce brands to follow suit.
Consumers already have access to big data on sites where they can find the best deals on products they love. As well, on sites that are popping up all over, accessible analytics is putting the power of big data at consumers' fingertips. And simply put, if consumers can already tap into big data analytics, marketers need to be utilizing it.
E-commerce marketers need to gain the skills and become familiar with the tools necessary to use predictive analytics. Marketers who don’t will soon find that they lack the skills to properly grow an e-commerce brand. One way e-commerce marketers can quickly get ahead is to shadow data scientists to see how they are using big data and predictive analytics. After that, they can jump right in and gain the experience needed to stand apart from the competition and really grow their e-commerce brand.
Phew. That was a lot of information. And even with all of that, we’ve just skimmed the surface. The potential of predictive analytics is unlike that of any other tool or skill in e-commerce right now. Marketers and business owners need to quickly overcome its challenges and learn how to use it like the industry giants.
Once you do, you’ll tap into the Holy Grail of e-commerce marketing: Knowing in advance what actions your customers are going to take. Right now, that’s a huge competitive advantage. Soon, it will be an imperative. Only the e-commerce brands who understand predictive analytics will survive.
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