Data is boosting in volumes and usefulness. It is growing faster than ever before.
By 2020, every person that uses the Internet will generate approximately 1.9 megabytes of data per second. However, regardless of the volumes of data generated by each person daily, if not processed properly, it will be lost and never to be found again in the digital universe. This is where the new concept of “fast data” appears and is due to replace the already-outdated “big data” concept. But how are the two different?
According to experts in the industry, the two concepts are fundamentally different. Big data is generally data that is unused. Data at rest, as experts claim. On the other hand, fast data is data in motion, that has different characteristics that allow technology to use and analyze it, to decide based on it. All these, in a matter of milliseconds. In this context, eCommerce businesses can profit from all the advantages of big data, but in real time. Below are some impressive ways in which fast data benefits the eCommerce industry.
Predict and adapt better to consumer behavior
As we all know it by know, big data plays an incredible role in tracking and predicting consumer behavior. The entire purchase process can be influenced by how appropriately big data is used. Many online shoppers are simply unaware that every click is monitored continuously and that the entire purchase process is closely registered and analyzed. In many cases, on each shopper exists purchase behavior data with three months previously and it is used to predict future purchase patterns.
In the fast data paradigm, online shops become capable of instantly processing all the information and make accurate predictions of the shopper’s preferences. They become able to make suggestions based on previous purchase behavior instantly and they allow increased decision-making capabilities.
Instantaneous personalized offers and recommendations
While big data can also make personalized offers and recommendations to all online shoppers, the eCommerce sector will benefit enormously if that data is processed and used instantaneously, say the experts at Gigaspaces, a fast data analytics service provider. Instead of occupying space on disk drives, like big data, fast data is capable of making real-time predictions, offers and recommendations. It is able to decide and act based on the received information. The ability to run fast data analytics as an eCommerce enterprise is certainly improving the way in which companies react to market demands and adapt to those. All these, in a matter of seconds.
Better use of data science in eCommerce
Data science in eCommerce can be used for two main strategies: customer acquisition and customer retention.
Customer acquisition-wise, data can contribute to determining how much it costs to acquire a customer and their lifetime value. Customer retention-wise, fast data can improve a company’s capabilities of figuring out how to influence customer behavior and making them purchase more, for a longer period of time. Fast data can help eCommerce players by determining rapidly and accurately the following coordinates:
- Customer lifetime and value;
- Persona analysis;
- Trend analysis;
- Cohort analysis;
- Customer segmentation;
- Churn detection.
Besides, fast data can also contribute to improving an online shop’s marketing efforts significantly. In its presence, based on the immense volumes of data that can be efficiently used, online retailers can automate the acquisition and retention process by adapting their marketing efforts, based on all the data they have a hold on.
Better problem-solving capabilities
To become useful, data has to be used proactively. Fast data analysis is a tool for solving different problems, testing hypotheses and determining solutions for re-occurring problems. To understand what data holds you have to implement good analysis strategies and technologies. This is where big data comes into discussion. With fast-analysis capabilities, fast data allows business owners to know the root of their problems but also the ins and outs of all clients of the company, their preferences, their needs and so on.
Undoubtedly, we are about to hear more and more about fast data in the eCommerce sector. With great potential, businesses become increasingly aware of the profitable ways in which fast data can transform their businesses.