BIG DATA BIG OPPORTUNITIES - Amazon

Marketing professionals for a long time now, have not been required to use their intuition to predict the likely success of a marketing campaign or likely success of a product launch. This is because businesses have made great use of Big Data, to collect, analyze and repurpose the meanings behind big sets of data, to make more strategic and more scientific business decisions. 

The three V’s of Big Data defined by Doug Laney, break down the dimensions of big data and businesses have been able to manage how they use big data by understanding the three dimensions. Similarly to the four P’s of marketing, the three V’s define what constitutes big data.

Christopher O Austin - Research Gate

Data Volume 

This is the size of the data file

(Austin and Kusumoto, 2016)

Data Velocity

Velocity refers to the speed of the data, this can be from the growth of the data or the amount of time the data takes to transfer from one place to another.

Data Variety

This describes what form the data takes, there are two main forms structured; which is big data found in a structured and organised data base and unstructured data; every other forms of data that is not found in a structured database that takes on all forms, this type accounts for 90% of all big data. 

This has benefited many e-commerce businesses as they are able to use this data to interpret the decision making process of customers that have purchased online, after interpreting the data they are able to make strategic decisions to increase the amount of products sold online by the use of predictive analytics. 

AMAZON

Amazon is one of the biggest e-commerce businesses and has successfully made use of predictive analytics to convert browsing customers into sales as quickly as they can. Predictive analytics refers to the use of big data and statistics to determine patterns and predictions for future outcomes.

35% of amazon.com’s revenue is generated by its recommendations engine.

http://rejoiner.com/resources/amazon-recommendations-secret-selling-online/

When you visit the amazon website it uses “cookies” to collect data such as how long you have been on the site, where you are located, what products you are searching and what products you have clicked on. If you have purchased with Amazon you are required to add your personal details and from this Amazon are able to determine what kind of person you are, and they derive the best ways to market the products to you, such as via email marketing. 

Many businesses do this and their strategy is based solely on the use of data and analytics to predict and analyse the best ways to directly target consumers, and turn them into conversion rates.