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 also helps 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 e-commerce ventures. According to the leading business intelligence consultants, specialized BI tools can revolutionize the working models of e-commerce businesses. Some of the major advantages offered by strategically implemented business intelligence services include:
E-Commerce Related Business Information
Timely and accurately available data is the driving factor that determines the success of any e-commerce business. Many business intelligence service providers develop matrices and e-commerce-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
Decision Making
The key purpose of BI is to help enterprises in the process of decision-making. As per studies, decisions based on the evaluation of data provide a greater success rate (79%) as compared to decisions made on intuitions. Business intelligence services effectively evaluate data and provide reports that enterprises can use for research purposes before developing strategies and models. For instance, BI can provide data related to past and present prices of competitors which aids in the development of a better pricing model.
Sales
BI enables enterprises to aid product sales by providing information about product demand and trending products. E-commerce ventures can utilize this data in the formulation of sales strategies. It also evaluates new profitable business opportunities and makes the company’s platform efficient enough to handle large traffic during sales and the festive season.
Customer Retention
E-commerce websites need to retain their customers as developing new customers is six to seven times more costly than retaining existing ones. BI provides insights into 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 the market is thriving the need for business intelligence for e-commerce ventures. It not only helps enterprises in improving the decision-making process but also allows them to monitor business outcomes regularly.
