Nowadays, every business needs to collect and analyse data to gain their competitive advantage. However, the process of gathering and then interpreting information manually is rather time-consuming and error-prone, which is why it is wiser to use a tool to perform the process automatically. The best and the most popular solution is, without a doubt, business intelligence.
Briefly, Business Intelligence (BI) is a set of tools that are gathered in one software solution. Their task is to collect data from various sources in your company, analyse it with the schemes, compare it to other performances and in the end create a report based on big data analysis and a number of different types of vital information. Comprehensive reports can be translated into insightful information. This data allows companies to make safer, data-driven decisions, predict and plan next steps.
Business Intelligence is a very powerful solution and a powerful ally in the world of rapidly changing conditions on the market. E-commerce is one of the industries in which using BI knowledge can be highly beneficial. Some of the indicators examined by BI are more important in the world of e-commerce, for example:
Of course, there are more but every business is different and how the Business Intelligence tool will look is highly dependable on the performance and business plan of the particular company.
How can Business Intelligence help your e-commerce business?
According to the study made by Nucleus Research, $10.66 was made for every dollar that a company spent on business Intelligence. The ROI (Return of Investment) in this case is more than 1 000%. These numbers are huge. What’s more, Business Intelligence helps you to reduce costs and implement more efficient processes based on big-data and reports. Higher sales due to higher knowledge about the customers and market are crucial. Business Intelligence can also save your and your employees’ time and resources.
Chance of success rises significantly when making decisions supported by data. You can stop trusting your guts and start making data-driven decisions. The main task of BI is to help your company make smarter decisions quicker. Analysis of prices and schemes, historical marketing information, dashboards with revenues and sales – these are very helpful features. Information is worth a lot and you can have it gathered, analysed and presented in a clear way using your BI tool. Thanks to BI you can easily evaluate your actions, analyse reports, and prepare for positive changes.
With BI tools you can easily asses the effectiveness of your marketing efforts. It lets you see what products are selling and to whom. Based on this information you decide which products are best to promote to particular markets. Business Intelligence can also show you what marketing campaigns and advertisements worked the best, thus in your future work you can focus on the most effective way to promote your products. Also, very important are the behaviours and buying habits of your customers. Remember to have them analysed and act according to them.
Gaining new customers is almost seven times more expensive than retaining a current customer. Business intelligence can give you insight into why your current customers are leaving and others keep buying from your company. You can collect data such as late shipments, returns and customer complains and analyse it using your BI software in order to improve customer satisfaction. It should be crucial for you to create a customer-friendly business and keep your customers close. Thanks to that you can reduce the costs of gaining new ones and keep your current ones at a high level of satisfaction.
To present it on an example of performance scoreboards, they can provide measurement on the extent the objectives of the business were achieved. They also highlight the areas requiring immediate action and monitoring. Further analysis of scoreboards and dashboards allows managers to follow the data and identify the customer groups and the products that meet the expectations of customers or are lagging behind these expectations. With all that information it is significantly easier to make good decisions.
To sum up
Business Intelligence is a highly beneficial tool for almost every business but it needs to be well designed and tailored for the company to be the most efficient. E-commerce businesses can gain a lot from being guided by data and to win the competition and gain new customers you should seriously consider acquiring this powerful solution. If you are looking for a software provider who can help you to develop and tailor a Business Intelligence tool contact Headchannel Ltd. and let us talk about your needs.