Have you ever thought about how you get product suggestions when you go to an e-commerce site or you go buy products from a department store and wonder why certain products are placed at certain locations in the retail store?
This is all done with the help of data analytics. Every time we purchase a product from an e-commerce site and or a product from a retail store, all of this produces information that can be later analyzed.
Increasing Sales by analytics
When a product is launched by an organization the product goes through what is known as the testing phase. In this stage, the product is launched on an experimental basis on certain selected cities and the reaction and feedback of the customers are collected. This data is later collected and analyzed using data analysis tools. The necessary changes are made and the product is launched. Another way data analytics is used to increase sales is by combining certain products as freebies you can increase sales. This is done by analyzing what products are usually bought together with the same product and then analyzed which product more commonly is bought. Then by combining those two products as a combo offer the chances of buying the main product are considerably increased.
Analytics and e-commerce
E-commerce is the main area in which analytics is used in a tremendous manner. The suggestions to buy products based on your past buying options. Analytics can also be used to understand why a particular product was not checked out from the cart. The reasons can range from negative reviews to delays in delivery. Data analytics is used to understand why the particular product is not being checked out from the cart. If it is anything that is regarded as the discount rate then a further discount will be given to the product in order to have a sale. The recommendation that you get during check out is from the data collected from previous customers who have bought other products along with the purchase of the target product. This is to instigate impulsive buying so as to increase sales. Hence analytics can be used to understand the buying pattern of the consumer and personalized offers based on his/her buying patterns.
