Do you think about how your business can achieve better marketing strategies and enhance client experience? Business intelligence in eCommerce can be the solution you are looking for. It will help you transform data into knowledge that you can use for various functions in your business.
This article explains business intelligence in eCommerce, business intelligence vs. business analytics, benefits of business intelligence in eCommerce, and tips for integrating your business intelligence tool.
What Is Business Intelligence in eCommerce
Business intelligence (BI) in eCommerce is the process of transforming data into useful information, which you can use to make intelligent decisions. Business intelligence enables you to acquire better knowledge and make decisions based on facts and figures rather than assumptions. It helps you use data and information effectively and efficiently.
Business intelligence can help your business acquire insights from vast amounts of both structured and unstructured data through the use of reports, dashboards, visualizations, etc. You can also gain actionable business insight using this technology by customizing information according to specific needs, such as increasing sales statistics or analyzing customer behaviors.
This way, it becomes easier for businesses to gauge what their target audience wants, how they want it and when they want it before competitors win.
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Business Intelligence vs. Business Analytics
The terms business intelligence and analytics are often used interchangeably, but they are not the same. It is essential to note the difference between business intelligence and business analytics to understand the distinction between the two concepts.
Here are some differences between business intelligence and business analytics:
- Intelligence uses present and past data, while analytics uses past information to perform business practices that boost productivity and stimulate clients’ desires.
- Business intelligence aims to acquire knowledge that can help companies make better decisions. Business analytics uses data gathered from different sources and performs statistical analysis to reveal valuable trends, best customer segmentation criteria, and market patterns.
- Business intelligence discovers and assesses information about a company’s past performance, while business analytics is concerned with collecting and analyzing data to make future projections and strategies.
- Intelligence is used for decision-making, while analytics refers to research or study data used for decision-making in the longer run. Intelligence does not result in recommendations, while it is the outcome of business analytics.
- Business intelligence is a part of business management, while management science uses business analytics to prepare strategies for future success.
- Intelligence can be done without studying the data thoroughly, but it requires thorough study and analysis before arriving at conclusions based on analytics.
- BI solutions involve summarizing and simplifying data into custom reports that are easy to understand. In contrast, business analytics involves statistical methods that make sense, which requires more technical knowledge about data sets.
- Business intelligence deals with structured data, while analytics deals with structured and unstructured data sources and their interrelationships among various databases to provide meaningful results to businesses.
- BI deals with historical information up to 3 months or even beyond, while analytics is concerned with historical data that can be used to make future projections.
- Business intelligence involves constant monitoring of information by an authorized user who uses the information in real-time for decision making. In contrast, business analytics has no such restriction and provides valuable insights about performance in the future or risk management, etc.
- Business intelligence is not based on any statistical model. At the same time, analytics uses statistical models to interpret patterns in data sets and enable businesses to make decisions concerning them.
- For business intelligence, the goal is information into actionable insight without any delay. With business analytics in eCommerce, the main aim is to generate valuable recommendations to gain meaningful results in less time.
- Business intelligence aims at finding answers, while analytics involves looking for questions and finding ways to get business solutions.
- Business intelligence is used by everyone at each step of the decision-making process. In contrast, business analytics is done mainly by data analysts or trained professionals who work on the latest results and make recommendations to managers and top management.
- The tools of business intelligence are not sophisticated. Still, they need technical know-how of computer systems and software products like power BI. At the same time, those used in business analytics are sophisticated tools that require extensive knowledge about statistical models.
> Do you have a customer-centric or a product-centric eCommerce? Discover the comparison between customer-centric and product-centric eCommerce tools: Reveal vs. Conversific
Benefits of Business Intelligence in eCommerce
When it comes to the benefits of business intelligence in the eCommerce industry, there’s no one-size-fits-all kind of response as every organization will be different from another in terms of its unique needs.
However, these are some business intelligence solutions and benefits that you can expect to enjoy when you choose business intelligence for eCommerce. Some of the advantages are discussed below.
Accurate Decision-Making
Business intelligence provides you with accurate and real-time information to make better decisions. The data presented to users is accurate, but it’s also obtained through different sources.
For example, social media monitoring results are one source that provides valuable insights into consumer behavior and trends of online shops. This kind of insight can be used alongside other proven tools for better decision-making processes.
Business intelligence manages your business data volume, velocity, and variety to give you meaningful reports in real-time. Further, by integrating various types of data sets into a single platform, organizations find it easy to make decisions based on up-to-date information instead of relying on past reports or generalizations.
Streamlined Business Operations
When you use eCommerce business intelligence tools, you will improve your company’s efficiency, supply chain, and productivity. Business intelligence software helps organizations streamline their operations and become more efficient by providing real-time data.
For example, if a problem occurs at one of your online stores or branches, you can address it as soon as possible instead of waiting for the next day’s reports. Continuous monitoring also factors in seasonal highs and lows depending on which time of year it is so businesses can make better decisions about pricing and marketing strategies.
Improved Business Processes
Business intelligence offers a variety of tools that help companies streamline their processes from start to finish. These include dashboards, operational reports, and alerts – each tool contributes to improved business processes that lead to better results. For example, having operational reports can help managers monitor their daily tasks to ensure things are being done the right way every time.
Reduced Risk of Fraud
Business intelligence also helps businesses reduce the risk of fraud because it provides accurate data that’s important for reporting and tracking purposes.
BI software can integrate various information streams to give you a complete picture of your business’ performance instead of just getting isolated bits of information from each database in your system. With this kind of visibility, fraudulent activities are easily detected.
As a result, organizations can make better decisions when dealing with suspicious activity in their company by knowing which account or transaction is affected before allowing further actions regarding business operations.
Improved Productivity
It’s possible to use business intelligence and data analytics to improve your company’s productivity. For example, with BI software, you can monitor all daily activities in real-time so that managers can make the best decisions when it comes to improving their company’s sales performance.
On the other hand, business analytics is used for predictive analytics purposes, which means that it helps businesses identify areas of improvement based on historical performance data. These two powerful tools combined help organizations become more productive by monitoring their daily tasks and looking into what might happen in the future.
Better Customer Experience
Business intelligence also contributes to positive user experiences because it allows organizations to stay competitive by sharing information with customers like online retailers through social media channels or eCommerce websites.
An organization can publish more engaging and relevant content to their customers’ needs with real-time data. BI software also allows you to make business decisions based on the latest information, which means you’ll be able to deliver better services for your clients.
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Better Management
Most importantly, business intelligence gives companies better management because it helps them monitor daily operations in real-time. This way, managers can make faster decisions using accurate data from various sources inside their organization instead of relying on outdated reports or regular assumptions.
Business intelligence is a valuable tool for making businesses grow by empowering executives with accurate information that leads to better decision-making processes within an organization.
Gaining Competitive Advantages
Business intelligence in eCommerce is a huge plus for businesses looking into different marketing strategies to gain competitive advantages.
For example, you can gather data related to your competitors’ online activities, which will give you the upper hand when it comes to making decisions about pricing and promotions. You can also use information gathered from customers or potential ones by knowing what they are looking for when using social media channels or company websites.
Customer Lifetime Value Analytics
Business intelligence also contributes to customer lifetime value eCommerce analytics which means you’ll calculate how much money each of your customers spends with your company throughout their relationship together.
Companies can make better business decisions when planning out customer retention efforts by knowing this information. You can also use this data to determine which customers are most valuable so that you can decide where to invest more to improve their experience with your business.
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Tips For Integrating Your Business Intelligence Tool
Business intelligence tools are here to stay. That’s why it’s essential to know how the information will flow throughout your company. Here are some critical tips to keep in mind if you’re looking for ways to integrate your business intelligence tool with eCommerce software or platforms.
Know What You Want to Accomplish
Before anything else, make sure you know what you want your business intelligence tool to do for your company. It’s essential to understand how the information will flow through your organization and how it will be used. Do thorough research before investing in a particular business intelligence tool because each might have a different approach.
Be Aware of Data Sources
Keep in mind that, unlike simple eCommerce platforms, business intelligence tools can extract information from various sources simultaneously, which means you need to know what each data source is before actually getting started with your project.
You can get this information by talking to a company representative who developed your chosen business intelligence tool. Another way is to have an introductory meeting about integrating their tool with all the eCommerce software programs you use for your business.
Ensure you get enough information about data sources so that you won’t have any trouble when it comes time to make manual additions yourselves through an Excel sheet or similar program.
Get Familiar with the Company Culture
When it comes to business intelligence tools, one of the most significant benefits is gaining insights into employees’ behaviors. Every person within your organization needs to be familiar with how the information will flow throughout your company.
The best way to achieve this is by simply explaining what you need from each department and what you want them to do to know how information must be gathered for the business intelligence tool you chose.
Identify Data Ownership
Business intelligence tools might help you get a wide range of information but remember that, just like with eCommerce platforms, there is always the chance that some data is missing or inaccurate. For this reason, it’s essential to know who will be responsible for gathering and adding new data to your business intelligence tool so that everything is up-to-date and accurate at all times.
Know Where the Data Will Be Stored
Like with eCommerce platforms, when collecting and storing customer information in one place, make sure you know where your business intelligence tool will be storing collected data. This way, if specific reports need to be created manually using EAxcel sheets or similar programs, you’ll already know what information they require and in what data warehouse you can find it.
Consider the Training Requirements
Every person within your business needs to be familiar with how information is stored and what data reports are created through your chosen business intelligence tool, which means training will be an essential factor. Make sure you know if your employees need to go through a certain training for this before actually getting started or if it’s something that they can learn on their own throughout implementing the tool in your company.
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Take Your Time Setting Up Everything On Paper First
Before actually getting started with collecting data using your chosen business intelligence tool, we recommend drawing up a draft where you list every possible source of information and all its requirements. You’ll have a visual representation of how data is gathered in your company beforehand and avoid unnecessary problems when the time comes.
Be Smart with Upgrades
Like with eCommerce platforms, business intelligence tools are constantly being upgraded, which means you need to know what changes have been made in the latest versions to avoid complications during implementation and afterward. It’s essential to be smart about upgrades and only upgrade once everything else has been set up. Otherwise, it might take longer than expected and cause errors and other issues within your organization.
Know Your Limits
One of the many benefits of business intelligence tools is that they can help companies gain insight into their employees’ behaviors but don’t go overboard. This could lead to severe problems like employees getting overwhelmed and other issues.
Conclusion
Analytics and business intelligence tools allow companies to get better at their jobs and provide insight into their employees’ behaviors. Still, one essential thing is knowing how all the information flows throughout your business to prevent any problems from occurring after implementation.
If you are interested in BI and eCommerce companies, you have come to the right place. Omniconvert is a reliable and trusted company that will help you increase the numbers of your royal clients and maximize profits through actionable insights into your business through Reveal. For more inquiries, services, or to make an appointment with us, you can visit our website.
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Frequently Asked Questions about business intelligence in eCommerce
Like many people, you may have many questions about business intelligence. However, we have some of the most frequently asked questions for you.
What Is eCommerce Business Intelligence?
eCommerce business intelligence is a special kind of business analytics that helps companies gain insight into their customers’ behaviors. This information includes popular products, frequently purchased items, which marketing strategies are most effective, etc.
How Is Business Analytics Used In E-Commerce?
Business analytics tools are used in eCommerce to predict customer behavior and allow companies to forecast what customers will do next, like which products they will buy.
What is Business Intelligence?
Business intelligence, otherwise known as BI, collects and organizes data to help companies make better decisions. With BI tools, you can increase your business productivity and gain insight into the behavior of every department within your company.
How business intelligence can improve eCommerce business?
Business intelligence (BI) can help eCommerce businesses improve their performance by providing them with actionable insights into their operations, customers, and market trends. BI tools can be used to collect and analyze data from a variety of sources, including website traffic, sales data, customer behavior, and social media activity. By analyzing this data, eCommerce businesses can identify trends, patterns, and opportunities for growth, and make data-driven decisions to optimize their operations, marketing strategies, and customer experience.
