Optimisation of Data Analytics

Optimisation of Data Analytics

The global pandemic is now into its 3rd year and with that we have seen many changes and one that is very much talked about is to do with the change in online shopping and online businesses. More and more companies are switching and adapting to gaining optimisation powered by data and analytics to flourish.

As we enter the new year, a vast influx of online shopping and doing business online will rapidly show. It has both a local and global impact. We have already seen a 66% increase in e-commerce in South Africa over the past 2 years and 46% growth globally. Many consumers have now grasped and embraced the use of digital channels for everyday use and now the challenge will be to maintain the supply and demand of the various and diverse e-commerce platforms. That is where the focus and balance should now be and to tremendously assist will be to utilise data analytics efficiently and effectively as part of customer experience.

In late 2020, Shoprite and Checkers, 2 of SA’s giant retailers have joined the likes of Pick n Pay, Clicks, Spar and others, by issuing out “loyalty cards” to their patrons. Now most of us know that some of these cards offer reward points and some don’t (Checkers and Shoprite, it’s just for getting discounts and benefits in store when you swipe your card), but what is important to take home from all of this is that all reward programs are not just for that purpose, it is also a data analytics tool/mechanism to track consumer spending trends and buying patterns which is so important in today’s market. The right stock levels are now more vital than ever before especially seeing that a lot of these companies are on the e-commerce platforms. Data is power. Having data alone will not do any benefit to these companies but utilising it with software and tools to analyse it, then it becomes a real powerhouse of value.

Companies will now more than ever shift their focus to using analytics to manage and upscale their businesses and platforms as the rise in e-commerce grows rapidly. Sales can be maximised and returns on investments can be improved and by utilising data analytics companies can prevent losses. The following lists the benefits that you can achieve from using data analysis in growing profits.

• Customised & tailored product recommendations

• Predicting product trends

• Analysing consumer buying and behavior

• Optimised ranges

• Pricing

• Market based buying

• Customer experience

Using predictive analysis tools and software can help e-commerce brands curb their operating costs in distinct ways. This comes from effective use of data analytics. Any brand that wants to survive in the long run must be quick to predict what consumers will want in the future. Data analysis can help e-commerce brands save costs in different ways through better predictions.

1. It helps you determine what your customers will most probably purchase in advance.

2. Improves supply chain management thereby minimising the cost of having no stock.

3. Reduces the cost of marketing through target recommendations and promotions.

4. Monitors what other competitor brands are doing by analysing their data and taking that information into consideration.

In this new year we enter, we will continue to see companies and brands work and improve on their e-commerce platforms by leveraging data analytics as part of their strategy and focus on supply and demand optimisation. We also need to be cognisant of the POPI Act as companies will be analysing various and diverse data which must not contravene any of the requirements of the POPI Act.

‍