Data-driven management is a concept that has solidified in recent years. It proposes using the data collected by the company during operation to improve the relationship with the customer.
The idea is to validate campaigns, analyze the reception of new products, and carry out tests so that the company can improve its performance in the consumer market. The application of data-driven management in e-commerce is increasingly common and is helping the market to become more competitive.
And that is why, in this post, we discuss what you need to understand about the importance of this feature, and why it is worth investing in this tool as soon as possible. How about finding out more about it? Check it out!
Data-driven management in e-commerce uses different sources of information
Could you tell how your customers discovered your online store? That is essential information to determine which of your efforts are being most effective.
For example, if you use Google Ads or Google Analytics, this information is already available for consultation. In fact, most forms of paid media have features that allow you to identify the volume of clicks and how the customer arrived at the website.
The management systems, ERP or CRM, that your company already adopts are also sources of information. So, use this feature to collect relevant data that will help make your analysis even more complete and reliable.
Improve the ability to devise accurate strategies
How can you predict whether your e-commerce sales forecast will come to fruition? The answer is that it is not possible to be 100% sure; after all, companies dealing with digital commerce always operate with a degree of uncertainty.
A new product may not be well-received by the public, or a review posted online may hurt sales. There are aspects of the business that are unpredictable and that require flexibility to be solved.
On the other hand, there are cases in which it is possible to make more reliable strategies and forecasts. Based on our experience, we defend that using technologies is one of the keys to getting ahead of the dispute for prominence in the market and more customers.
The features of a data-driven system allow the manager to know the most important details about potential customers. With this, it is possible to draw up plans for the macro environment, which has a greater chance of success because they are data-based.
It helps increase demand predictability
Retail, whether traditional or electronic, is always affected by seasonal periods and other important dates, such as holidays and Black Friday. In addition, the daily operation must be programmed so that the stock is always supplied.
The purpose of this practice is to prevent a problem called stockout (or out-of-stock). That is what happens when the customer goes to the store to purchase an item, but there is no stock available. This situation should be avoided, as it causes dissatisfaction and affects the relationship with the customer.
With a system that analyzes consumption history, it is possible to determine which items are in greater demand and to plan the purchasing process according to the sales volume in other periods.
The interpretation of this data is of great value to the merchant, as it helps to identify behavioral patterns and trends that affect the relationship with the customer.
It optimizes distribution process flexibility
If you are a professional in this area, you already know that one of the biggest bottlenecks in e-commerce is precisely the distribution stage. The objective of this activity is to ensure that the products are delivered on time and in the conditions expected by the customer.
However, even when the logistical flow is well-established, there are still risks related to:
- orders separation and dispatch;
- damage caused during loading and unloading;
- delays due to fleet problems;
- lack of products in distribution centers.
- Therefore, it makes sense to propose using a data management system, as it makes it possible to deal with these problems as they occur. For instance, stockouts often happen during seasonal periods.
With this information in hand, the manager can prepare and reinforce the stock to ensure the availability and variety of items at the time of purchase. These and other practices can only be traced when we deeply know the particularities of e-commerce.
It allows the company to follow trends
Innovating is one of the pillars for companies that want to remain competitive and continue to grow. For this reason, it is necessary to be aware of novelties that may change consumption habits or interfere with the demand for products.
Data-driven management enhances the company’s ability to identify these deviations in the market and prepare its reaction accordingly. When a new context is presented, it is possible to identify its origin from quantifiable content.
While the competition makes decisions based on personal experience and insights, your company uses data and technology to identify trends.
It promotes the solution of difficulties
Keeping a business up and running is a challenging initiative, as there are several mishaps in the entrepreneur’s path. The lack of agility in the processes, failures in the processing of orders, and the operational costs to maintain the online store are impasses that hinder the growth of the business.
However, we cannot fail to seek solutions and focus on improving processes. The data that makes it possible to perform this analysis already exists and is in the company’s hands. Your company may lack the robust tools to extract insights about the business and the customer.
For companies that already adopt data-driven management in e-commerce, this is a noticeable difference. A culture focused on data management understands that this system should be at the heart of sales, marketing, and finance strategies.
Failing to use data-driven management in e-commerce is the same as failing to take advantage of opportunities to help the business grow sustainably. Therefore, do not overlook this resource that can change the future of your business.
If you want to know more about this system, contact us and learn about our services.