The e-commerce sector has been booming over the years, especially during the coronavirus pandemic period. According to researchers, the e-commerce sector of North America experienced an increase of approximately 129% during the pandemic. The growth is said to have been contributed by the change of habits among consumers.
The secret behind the continued success of the e-commerce sector is said to be the implementation of data-driven strategies. Data plays a crucial role in developing businesses in the current business era. However, not every data that you collect is essential in helping you predict customer behaviour and what needs to be done to propel your brand.
Alternative data analysis is mainly generated from consumer content, primarily through website crawling. It can also be created using the text available on the web pages and through scraping.
The meaning of Alternative Data
Alternative data focuses on covering multiple categories. The definition of alternative data depends on the context in which it has been applied. It generates missing data by using conventional sites such as forecasts, news sites, and many more.
An excellent example of alternative data is a social media post that has been made from scratch. You can also use sentiment reviews such as the product review data, which offers a great way to generate alternative data. The most valued thing about alternative data is that it comes directly from consumers.
Note that the e-commerce sector focuses on teaching customers directly online and analyzing the kind of choices that they are likely to make. The data collected depends on the product discussion and the brand itself. The information collected at this point comes from customers.
The reality is that alternative data analysis is a crucial aspect of the e-commerce sector. Let’s look at some of the ways this is made possible!
Offers Notices for Negative Reviews
Commonly, responding to a negative review is similar to putting off the fire. At some point, it might appear heroic or spread out of control if not handled with great care. Once a negative review goes unnoticed, it is likely to affect the business’s general performance in the long run unless proper action is taken.
You should have tools and programs that notify you about every moment that your brand is reviewed to eliminate such instances. Alternative Data analysis is a key aspect at this point since you need to analyze the reviews you have and respond to the most critical cases.
The best way to deal with negative reviews is to respond to them immediately and solve the problem. Ensure that the customer gets satisfied after you have come to their attention and let them express themselves about what they feel about your brand. Remember that a single negative review can tarnish the entire brand.
When responding, ensure that you do not sound like a desperate attempt but make it seem that the complaint has been challenging and proper action has been taken into account. Showcase impressive customer service and stay informed about the reviews from customers.
Competitive Analysis
It is essential to keep into account what people say about your e-commerce brand. However, knowing what customers say about your competitors and what they feel for them is very important. The likes and dislikes of your customers about the products being offered by your competitors give you a clue on the areas that you need to modify to create a better experience.
You can use the information to fill the gaps in the market and make it an opportunity to make your brand stand out at the helm of the business industry. Create notifications to help you learn when customers review rival products to help you learn the modifications that you need to make on your products.
Keep in mind that the ultimate goal of doing business is to sell. Use the reviews on your competitor’s products to modify what you are offering and align it to your target market depending on your goals in business. Read through the reviews to learn more about what the customers want and what you can do to secure them and diversify your audience.
Capitalizing on the Power of Reviews
It is evident that most customers like creating reviews after purchasing particular products online. Before making any purchase, most customers check online for reviews before making a purchasing decision. There is no doubt that reviews are much more influential when doing business online compared to anything else.
This has been shown publicly by the numerous available numbers of review sites available on the web. To keep a good reputation in the e-commerce sector, ensure that your brand is full of positive reviews to persuade the rest who are more likely to purchase products and trust in your brand once they read your reviews.
Instead of giving your team members the work to read through the reviews, consider acquiring tools capable of perusing through the reviews and notify you in case of any negative statement. You can also go for a tool that is capable of responding to your customers to ensure that they feel valued after supporting your business growth.
The tool will give you a general score depending on what customers think about your brand. Focus on improving the score you get every time to maintain a better position in the business.
Evaluate Pricing Differences
Pricing is one of the things that changes drastically and can significantly affect your market share. Note that your business is likely to participate in a price war, and you won’t even realize it. This mostly happens when competitors decide to slash the price of their products.
You should constantly monitor the price changes using best comparison charts to ensure that you are updated and secure your customers. You can create automated dynamic pricing that will help you secure your position in business and elevate your brand. Avoid unnecessary competition due to hiking prices by ensuring that the prices reciprocate what you are offering.
Bottom Line
You can incorporate data visualization in your alternative data analysis to ensure that every point has been well covered. According to data analysts, the alternative data industry is expected to grow at a rate of 58.5% over the next few years as the business sector continues to expand.s
