Predictive analytics is a form of data analytics that helps in getting information from historical data sets to identify patterns in the data and forecast future trends and outcomes. Historically, ecommerce companies have been rather slow to adopt it, but giants like Amazon and eBay have understood the importance of predictive analytics in ecommerce and have incorporated it in their operations.<\/p>\n
Predictive Analytics can give ecommerce companies an unparalleled insight into their customers. Before this, building and marketing ecommerce stores used to involve loads of guesswork. Now, they can easily see what is working and what is not, thereby removing any area that can pose risk. While the benefits of data analytics in ecommerce services are endless, here are a few of them:<\/p>\n
\u00a0<\/strong>Better Recommendations<\/strong><\/p>\n Recommendations are very important for any ecommerce business, but it is more important to get them right. Data analytics<\/a> helps online stores make better recommendations to customers by correlating data from various sources to make a personalized recommendation. 35% of Amazon\u2019s annual sales come from successful product recommendations made using predictive analytics.<\/p>\n Also Read: <\/strong>13 PREDICTIVE MODELS THAT ARE TAGGED AS GAME-CHANGER FOR BUSINESS<\/a><\/p>\n Dynamic Pricing<\/strong><\/p>\n The traditional approach of \u2018one-size-fits-all\u2019 is no longer applicable. With the help of advanced analytics, online stores can sell their products at the best price and make huge profits when the demand for the item is high. Amazon has experienced over 143% increase in net profit between 2016 and 2019 after adopting a data analytics-based pricing strategy.<\/p>\n Optimized <\/strong>Supply Chain<\/strong><\/a><\/p>\n No customer wants to see the dreaded \u2018Out of Stock\u2019 label in the place of the \u2018Buy Now\u2019 button. According to research, two-thirds of customers who experience an \u2018Out of Stock\u2019 situation will choose to shop elsewhere. Top brands like Walmart.com and Amazon have invested heavily in predictive analytics to sell products that have not yet arrived in their warehouses.<\/p>\n Better Customer Service<\/strong><\/p>\n Good customer service directly leads to higher customer retention and conversion, thus bringing more profit. Predictive analytics<\/a> helps ecommerce companies provide better customer service by identifying issues in the delivery process, the delivery time of the goods, average response time and other factors which customer service staff can act on to reduce the chance of bad service.<\/p>\n The implementation of predictive analytics in ecommerce can become a huge advantage for any e-tailer. However, implementing it properly can be a huge challenge. Powered by Artificial Intelligence, SPIN Strategy provides predictive analytics solutions that help such ecommerce businesses in making strategic decisions that boost business growth. To know more, visit https:\/\/www.spinanalyticsandstrategy.com\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Predictive analytics is a form of data analytics that helps in getting information from historical data sets to identify patterns<\/p>\n","protected":false},"author":1,"featured_media":635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,8],"tags":[25,54,72,73,74,103,124],"class_list":["post-634","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-analytics","category-predictive-analytics","tag-artificial-intelligence","tag-data-analytics","tag-ecommerce-business","tag-ecommerce-companies","tag-ecommerce-industry","tag-predictive-analytics","tag-supply-chain"],"_links":{"self":[{"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/posts\/634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/comments?post=634"}],"version-history":[{"count":1,"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/posts\/634\/revisions"}],"predecessor-version":[{"id":660,"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/posts\/634\/revisions\/660"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/media\/635"}],"wp:attachment":[{"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/media?parent=634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/categories?post=634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.spinanalyticsandstrategy.com\/blog\/wp-json\/wp\/v2\/tags?post=634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}