How Business Intelligence boosts E-commerce Business?

Business intelligence in ecommerce

Business Intelligence (BI) is a combination of strategies and best-in-class technologies that provide the most important information about the business and consumers to enterprises. It allows enterprises to store raw data, process it, and avail selected information while saving time and energy. Besides, it is also helping enterprises to get more informed, and assists in making the process of decision making efficient.

BI’s ability to evaluate useful data has enticed many Ecommerce ventures. According to the leading business intelligence consultants, specialized BI tools have the ability to revolutionize the working models of ecommerce businesses. Some of the major advantages offered by strategically implemented business intelligence services include:

  1. E-Commerce Related Business Information

Timely and accurately available data is the driving factor that determines the success of any ecommerce business. Many business intelligence service providers develop matrices and ecommerce-specific BI to present data that can aid in decision making. Some of the helpful information includes:

  • Top performers
  • Trending products analysis
  • Marketing, sales and inventory reports
  • Margin and trend analysis
  1. Decision Making

The key purpose of BI is to help enterprises in the process of decision making. As per studies, decisions based on evaluation of data provide a greater success rate (79%) as compared to decision made on intuitions. Business intelligence services effectively evaluate data and provide reports that enterprises can use for research purpose before developing strategies and models. For instance, BI can provide data related to past and present pricings of competitors which aids in the development of a better pricing model.

  1. Sales

BI enables enterprises to aid product sales by providing information about product demand and trending products. Ecommerce ventures can utilize this data in formulation of sales strategies. It also evaluates new profitable business opportunities and makes the company’s platform efficient enough to handle large traffic during sale and festive season.

  1. Customer Retention

It is important for ecommerce websites to retain their customers as developing new customers is six to seven times more costly than retaining existing ones. BI provides insights of potential reasons that can reveal what compelled consumers to leave. It can collect information related to late shipments, returns, customer reviews and complaints, and analyze them to improve customer satisfaction and retention.

Competition in market is thriving the need of business intelligence for ecommerce ventures. It not only helps enterprises in improving the decision making process, but also allows them to monitor business outcomes on a regular basis.

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