How does Amazon use big data? Amazon use big data analytics to motivate consumers to create more pleasing online shopping options. This stimulates more sales from them, and therefore more profits. So how does Amazon use big data? Part of the secret to Amazon’s success lies in their adopted approach, which hasn’t left anything untouched. Every aspect of their business is optimized for big data, from their massive online retail presence to their mobile offerings, from their web stores to their apps on cellular devices.
For example, Amazon has an incredible marketing system that works across devices. It starts with their storefront on a brick-and-mortar store, where the consumer can browse through their inventory. They then “reserve” a seat at the comfort of their seats by logging into their Amazon account using their personal details. From there they can look up any item, see what it’s available in a bag, search for a specific item or place an order. When it comes to choosing a book, a movie or a game, or how about a pair of shoes from their app, all these actions are tracked and measured using sophisticated software tools.
Once they know what customers want and need, Amazon leveraged its extensive knowledge of customer buying habits to build tailor-made solutions. Each customer order is assigned a unique ID number that is needed in order to log into their account. When a customer visits an app or site, the application uses this ID to login. Using this ID, they can look up what they need to buy or find an item based on browsing their history. By taking this route, Amazon maximizes its profits and reduces the number of returns it would otherwise have to deal with.
The same goes for mobile shopping. Rather than relying on manually entered data, Amazon has developed an app specifically for this purpose. All of the same points are tracked for both mobile and desktop, allowing any customer to buy anything from anywhere. The beauty of Amazon’s app is that you don’t even need to be at your computer. They have integrated their data with that of millions of other customers which means that wherever they go, they can shop.
Amazon has taken all of its financial records and turned them into a single consolidated database that allows any customer, anywhere to view their records. In fact, some time back they even shared their earnings with their online retailers. As a retailer, you no longer have to wait for sales to come in to view your customer’s records. You can instantly access them.
Even more impressive than the above achievements is the data insights it gives you. For example, Amazon has tracked where your customers go once they leave your website. How did they know? They’ve studied how people move around different cities and used this information to create physical locations within the app. You can browse the map of your area, looking for retail locations that fit your criteria. Once you’ve found them, you can request a delivery.
Amazon has also used customer location data to make purchasing decisions based on what customers already want. For example, it knows where customers are likely to travel after using their app to order something. By tailoring its search results to its users, it ensures that they’re the ones who will get the things that they want. If a customer isn’t at home in your city, for instance, it will ensure that they go to the one place that is nearest. This helps the company reduce its shipping costs.
There’s still so much more to learn about how does Amazon use big data analytics. It’s amazing just how much information it can give you and how it integrates all of it into the user experience. You may wonder how you ever lived without it before. But you never will. You’re already finding creative ways to use big data to improve your operations.