The reason why company use analytics is in three folds.
First, To create competitive advantages or use analytics as competitive strategy.
Second, To removing removing inefficiencies with in organization.
There are a lot of organizations use tools like Six Sigma to improve the process and thus remove inefficiency within the organization. And the primary reason many use analytics is because it gives us the ability to take right decisions or better decisions.
A photo of a delivery boy who is actually carrying items from Flipkart(E-commerce company) and delivering customer end, we have seen day to day life but not think about how much analytics they may have done to ensure to make this operation successful.
First, To create competitive advantages or use analytics as competitive strategy.
Second, To removing removing inefficiencies with in organization.
There are a lot of organizations use tools like Six Sigma to improve the process and thus remove inefficiency within the organization. And the primary reason many use analytics is because it gives us the ability to take right decisions or better decisions.
A photo of a delivery boy who is actually carrying items from Flipkart(E-commerce company) and delivering customer end, we have seen day to day life but not think about how much analytics they may have done to ensure to make this operation successful.
Few question e-Commerce companies try to ask question like : is they have to forecast demand for each SKU ? having large number of items , and more importance to do forecast demand for each SKU otherwise, they'll either run out of the items on demand and it may lead to customer dissatisfaction, or may end up with huge inventory adding to their cost.
The next question , to predict customer order cancellation and returns. E-Commerce world cancellation rates are very high and if we can predict in advance for each customer order going to cancel,then we can actually take necessary action based on prediction.
Predict customer call at the customer service , this may because of many reasons. One , if there are so many customer calls ,that means we need more staff to make faster response to customer, and to make quick customer support, it needs investment on total operating cost. Using analytics approach should identify what are the reason & why the customer service center getting more number of calls ,and come up with plan so that can reduce that and helps to improve the service as well as reduce the cost of operation.
Also try to predict what the customer is like to purchase in the future.So,this will help them to come up with recommended item and increase the companies revenue.
Third, Fraud detection , Many times we have seen the news and post on social media that an eCommerce company
delivered stones instead of iPod. Fraud in e-commerce is very common phenomena. And many e-commerce
companies would like to predict a fraud before it happens.
So here above three different examples why
we need analytics. In fact, without analytics it will become very difficult for any e-commerce company to
compete in the market.
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