eCommerce
The desire for personalization is increasing
Hardly any other industry is already playing with data as eCommerce does. This is primarily due to the fact that advertising must be specifically tailored to potential customers. But there are also many challenges: Supply Chain Law, cost increases, inflation, declining willingness to consume and the shortage of skilled workers.
There is also the Cookieless Future, which is already taking some companies breathless.
At the same time, customers want personalized offers, advice as if they were in a retail store and fast delivery.
Data as a solution to eCommerce challenges
In the future of eCommerce, there are two things that should not be neglected:
-Dealing with regulations
-An extremely customer-focused look at the entire business model
The key component of a successful online shop is customer happiness, both new and existing customers. This works by personalizing the customer journey, because customers expect personalized interactions with the shop in which they are shopping. And they do this in a variety of ways: in the app, on the smartphone and still via the laptop. Apps and the differentiation between iOS and Android as well as recommendations within the app can extremely increase customer satisfaction and at the same time provide first-party data — an advantage in the cookieless future.
Use marketplaces and product data wisely
Anyone who is not active on marketplaces loses a large proportion of potential customers who have become accustomed to them and want to enjoy the benefits of the marketplaces.
Maintained product data is essential to obtain valuable rankings there and to strengthen sales.
A strong product information management solution paired with a well-maintained inventory management system ensures success not only on marketplaces, but also in your own shop.
The Cookieless Future — a nightmare for eCommerce?
When it comes to advertising, eCommerce has long relied on third-party cookie solutions from Meta, Google and Co. But in 2024, this paradise will be over. Alternative solutions are needed and there are a few of them: first-party data, contextual targeting, unified ID solutions, cohort-based approaches, predictive analytics, server-side tracking, privacy-enhancing technologies or even blockchain technology — companies must choose and implement the right and suitable solution for them. The data basis for all these innovative approaches must be right!
At the same time, tracking must be adapted to the company's requirements and - without ignoring user requirements - transfer as much information as possible to the marketing teams. In this way, the customer journey and customer experience can be guaranteed from shop to delivery.
Make customers happier — with artificial intelligence
Technical developments in recent years offer plenty of opportunities: Artificial intelligence supports personalization and real-time data enables higher sales because users can react to user behavior in a very short time.
Here too, the focus is once again on customer satisfaction.
But AI can do much more in eCommerce: Customer lifetime value forecasts help identify strategic segment developments, purchase cycle forecasts support targeted targeting and a more personalized customer approach, and churn prediction gives the company the opportunity to prevent existing customers from canceling.
In eCommerce, it is important to always stay up to date — whether with regard to tools, tracking or apps.
Here, The Data Institute provides support in a variety of ways. During our data audit, we give online shops an overview of data usage based on our organization, culture and architecture framework. As a result, the low-hanging fruits can be harvested and initial recommendations for action can be made.
We are also happy to develop a data strategy with companies and support the development of dashboards and reports.
Using data specifically in eCommerce
eCommerce case studies
Here you can find an insight into our case studies.
Jonas Rashedi, one of the founders of The Data Institute, has worked at the Douglas perfumery for many years and therefore has a great deal of experience in e-commerce.