Business Intelligence (BI) is a technology that gathers, breaks down and introduces business data and enormous information. The BI solutions & products, whenever executed effectively, spares you time and vitality while giving you essential data about your business and clients. Business Intelligence programming can take the majority of your crude information, comprehend it, and demonstrate to you the data that matters. Business knowledge enables organizations to settle on making progressively educated and better choices for marketing, sales, and various different fields of the business.
According to a study done by USA based research company Nucleus Research, $10.66 was made for every dollar that a company spent on Business Intelligence. That’s an ROI of over 1,000%. The data picked up from business knowledge can enable your business to decrease expenses and to implement more efficient processes. Business Intelligence can help a business to generate more leads and to retain more clients for a longer period of time. Utilizing business intelligence rather than manually entering business data can save a business from unnecessary expenses and time and can help to use business resources more efficiently.
Today, we’ll be talking about one particular industry vertical which is E-commerce and we’ll be sharing our findings on the importance of BI implementation for e-commerce businesses
In E-commerce businesses, the real-time data from the websites are stored in data warehouses and through the ETL process and those data are used to analyze the business using business intelligence. ETL – extract, transform and load – is the set of processes by which data is extracted from numerous databases, applications and systems, transformed as appropriate, and loaded into target systems – including, but not limited to, data warehouses, data marts, analytical applications, etc.
Business Intelligence Process from Scratch
Why E-Commerce businesses are adopting Business Intelligence
- Accurate Decision Making: Business Intelligence allows E-commerce businesses to make decisions based on statistical facts. Those facts can be used to guide choices about future company growth by evaluating a long-term view of the market and competition.
- Driving Revenue: Business Intelligence enables E-commerce companies to discover detailed sales trends based on their customers’ preferences, reactions to promotions, online shopping experiences, purchasing behavior and patterns and trends which affect sales and leads to revenue maximization.
- Operational Efficiency: Decreasing waste and improving profits is the goal of any business. Business intelligence looks at all types of data and can help the E-commerce businesses to find out where there are errors and quality issues in lost productivity in sales, customer attrition due to call center dissatisfaction, poor strategy due to badly analyzed market research, and an infinite array of other problems needing speedy and effective solutions. As such, data may be run through a variety of modules in order to assess where waste and improvements can occur and develop strategies for correcting these problems.
- Gaining Competitive Advantages: Business Intelligence gives a 360-degree view of the customer to understand customer behavior, customer analysis, customer needs and providing the best according to that. Leveraging customer buying pattern business Intelligence permits E-commerce businesses to decide the best course of action to retain valuable customers and take advantage of missed sales opportunities.
- Managing Business, In-house & Spotting Problems: Business Intelligence helps E-commerce businesses refine an assorted inventory and optimize supply quantities by analyzing detailed historical data such as buying patterns and the demographics of customers. It also minimizes the risk of out-of-stock situations by analyzing safety stock data and inventory and sales information to create accurate forecasts. Business intelligence provides valuable data that Predict over-stock situations before they become a major problem by drawing on replenishment, sales, and forecasting data.
Roles of Business intelligence for the E-commerce industry
There is some E-commerce specific Business Intelligence required to efficiently run an E-commerce business. However, most of the matrices are the same as those required by all businesses. Some of the important reports related to E-commerce business are
- Top Performers in the Market: Business Intelligence analyzes the Most profitable advertising campaigns, customers, segments and products based on data and gives the E-commerce business a clear view of how they should do their marketing.
- Trend Analysis: Business Intelligence analyses the trends of changing customer preferences and behaviour to shape the E-commerce business.
- Margin Analysis: Business Intelligence analyzes the Cost and profit. Business Intelligence list products and product lines, Areas where margins can be increased, price sensitivity and elasticity of demand.
- Live Marketing Reports: Business Intelligence analyzes the Products included in the cart, abandoned carts, search terms used, the response of the newsletter, etc.and gives live marketing report.
- Live Sales Report: Sales Analysis, sales, returns, taxes, shipping, refunds, discount coupons, promotional offerings, credit card collection into formations can get live with Business Intelligence.
- Inventory Reports: Items sold, available quantities, items to be reordered, new items, orders in hand and on order, inventory in transit and much more are analyzed by business intelligence for better inventory management.
There are so many Business Intelligence tools using which the E-commerce businesses can generate more insights about their business and can project the future of the business more efficiently.
Top 10 Business Intelligence Software Leaders
There are many free and paid tools available for Business Intelligence. You just have to choose the best tool that fits your E-commerce business. Below there is a list of the top 10 Business Intelligence Software leaders of the industry.
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Business Intelligence Software Leaders
In today’s world data is considered a great asset for any business. Leveraging these data with the help of business intelligence can help any E-commerce business to grow rapidly by tapping in any new market or to identify and convert a potential customer.