Big Data in e-Commerce.

How to Use the Power

of Data in E-Commerce?

Tom Karwatka
Monitoring E-Commerce Today
Today, the majority of the e-commerce world monitors the following
indexes:
NC (new customer);
RC (retained customer);
ROI (return on investment);
CLV (customer lifetime value);
ROI CLV;
RR (return rate);
CR (conversion rate);
CPO (cost per order);
CPNC (cost per new customer);
CPRC (cost per retained
customer);
Sources of Data in E-Commerce

E-commerce Social data

Orders FB
Products Twitter
Baskets Google
Visits Cookies /
Users reMarketing / MA
Marketing campaigns Google Analytics
Referring links
and many others
Keywords
Catalogues browsing
The Choice of Data Source in Traditional Retail Is Even Greater

Already in 2012 the Walmart transaction database was estimated to have 2.5
petabyte of customer data.

Source: http://www.slideshare.net/MarketResearchReports/big-data-1
Questions the Analytics Can Answer

What are the best sellers in a category?

Is the most watched product at the same time the best selling one?
Which products sell best among the users who have already bought an item in
the product category?
How often does a given user group (eg., new users) return to your shop?

The problem is, however, that answering these questions does not lead directly
to a bigger profit.
Companies often get discouraged as the answers are difficult to apply in real
life.
The Actionable Data
Applying the Big Data solutions makes it possible to analyse data in real time. This
allows us to use the data not for reports only, but to translate them into action
usually personalized and in real time.

Collaborative filtering Regression

Indicating trends or the lack of
Using the information on users' trends
actions to automatically find Predicting stocks
the correlations between: Anticipating a product's future
Elements on a website popularity
A keyword and the link chosen Anticipating the future popularity
of promotions
Recommendations Assessing the effect of marketing
Products activities on sales or the number
Offers of users

Classification Categorization and

Users who continue shopping
segmentation
Customers
Products
Example: Actionable Data

If, thanks to Big Data, we can find the correlation between the social
media and our system data, then taking into account that:
40% users purchased a product after liking or sharing it on social media
71% users of social media buy mainly based on recommendations

We can prepare shopping recommendations for specific customers,

based on their social media behavior.
 Example: T-Mobile

Billings, social media data

Selecting clients for migration to

premium models

Detecting clients with high Lifetime

Customer Value

Source: http://www.slideshare.net/Dell/big-data-use-cases-36019892?related=1
 Example: CREDEM Banca

Predicting what products and

services will a customer like

Increasing an average revenue on a

customer by 22%

Marketing costs reducted by 9%

Source: http://www.slideshare.net/Dell/big-data-use-cases-36019892?related=1
 Example: STARBUCKS

Collecting the data about the

customers' orders

Personalizing adverts

Personalizing vouchers

Selecting the customers losing their

interest in the offer

Recovering lost customers

Source: http://www.slideshare.net/Dell/big-data-use-cases-36019892?related=1
 Example: NORDSTROM

Aggregating data from www pages,

social media, transactions, loyalty
program.

Choosing a message based on the

customer's preferred
communication channel.

Source: http://www.slideshare.net/Dell/big-data-use-cases-36019892?related=1
 Example: EasySize
Analyzing orders and returns using the findings to decide which
sizes in different brands would fit a given person.

Source: http://easysize.me
 Example: EasySize
Results: decrease in returns by 35-40%

easysize.me

Source: http://easysize.me
Example: Promotional Activity of Brands

Using a consumer mobile app,

we collected the information on
the special offers in shopping
malls that customers find
attractive.
The data let us answer the
questions:

The Kizzu app is available on

Which brands have the highest
promotional activity?
Which special offers are the most
iPhone and Android. Over
10.000 users enjoy the app. It
gives the information on
current promotions in the
users shopping malls.

effective?
Example: Promotional Activity of Brands
Among the most popular special offers,
we found also some less popular, niche
brands.
Internet / Mobile gives them opportunity to compete
against strong brands for the customers' attention.
They attract customers, offering big discounts.

Among the most popular special offers

there are frequently content based
promotion activities (a promotional
newsletter or a magazine).

Activities targeting the most loyal

customers are also popular.

The number of promotional activities

does not depend on the status of a brand.
Our TOP 50 includes also some of the brands
positioned as premium ones. Their customers
apparently expect a frequent interaction with the
brand.
The free-of charge magazine for the
customers of Deichmann is published
twice a year - in spring and fall. It
shows the latest fashion trends - very
popular online
 Future: Big Data & Design

Continuing to use Big Data

together with the automation
of the layout creation
- Responsive-web design
- Font-end frameworks
Creating user-customized
layouts
Case study:
https://www.behance.net/gallery/22
089487/Tchibo-Content-Automation-
Platform

Source: https://www.behance.net/gallery/22089487/Tchibo-
Content-Automation-Platform
Future: Big Data & Machine Learning

IBM Watson - Developer Cloud Enterprise

Medical diagnostics support
Legal consultations
Google
Google Now the first apps for eBay
DeepMind
Siri, Cortana, Amazon Echo
Amazon Echo already makes it possible to create
shopping lists, among others

Three days in and were already acting like its been here forever. () Alexa can maintain two lists for
you: To-do and Shopping List. Adding things is as simple as Add butter to shopping list and addng
gutters to to-do list. () Once youve added things to your list, you access them through the app.

One great thing is that everyone in your household who installs the app shares everything. So when I
was at the store, my wife texted me that shed put some things on the Echo shopping list. Sure
enough, I opened my app and there it was. I could check off the things I got and they disappeared.

http://www.engadget.com/products/amazon/echo/reviews/14cw/
http://www.ibm.com/smarterplanet/us/en/ibmwatson/developer-cloud-enterprise.html
Future: Big Data & Machine Learning

The assistant will deduct the products we are

about to need from a number of data, and will
order them autonomously.
As far as the mass products go, the competition
will become more and more difficult.
The promotion of FMCG as we know it will stop
being recognizable by the customers.
The companies controlling e-assistants will
become the biggest shopping portals.
Basic competitive advantage will grow in
importance the product's availability,
competitive price, and swift logistics.
Internet will become just another layer of
technology little interesting for an average
user.

Source: https://itunes.apple.com/us/app/fetch-personal-buying-assistant/id867636554
Future: Big Data & Machine Learning

Right now, it is worth to develop new mechanisms for data

exchange and offer creation automation.

It is also worth to expand your own client databases, so as to

keep in direct touch with your customers as long as possible.

Owned Media!

Source: https://itunes.apple.com/us/app/fetch-personal-buying-assistant/id867636554
Thank You for the Attention

Are you interested in Big

Data?

Let's talk!

Tom Karwatka
http://divante.co
tkarwatka@divante.co

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