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What is business intelligence in ecommerce?

Business intelligence and data analysis can be invaluable tools for any e-commerce business.

This type of technology allows businesses to analyze customer data, understand spending patterns, target potential customers, and improve their website performance, all of which can help skyrocket revenue and increase profits. 

In this article, we will share what business intelligence is in ecommerce, how you can use it and how data analysis and monitoring contributes to the success of your digital business.

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business intelligence in ecommerce

What is business intelligence in ecommerce?

Business Intelligence (BI) refers to the set of processes, technologies and tools that allow companies to collect, analyze and present data significantly to support strategic and operational decision making. 

In other words, it's about turning data into actionable information that helps organizations better understand their business environment, identify trends, patterns and opportunities, and make informed decisions.

When we talk about Business Intelligence (BI) applied to electronic commerce, we are referring to the collection, analysis and presentation of data to provide actionable information that supports decision making in a digital commerce business.

Difference between business intelligence and business analytics

Although the terms Business Intelligence (BI) and Business Analytics (BA) are often used interchangeably, there are important differences between the two concepts in terms of focus, scope and objectives. These are the key differences you should know:

Business Intelligence (BI):

  • BI focuses on retrospective data analysis to understand what has happened in the past and why it has happened.
  • It is based on the collection, transformation and visualization of data to provide descriptive information about a company's past performance.
  • BI tools typically focus on generating reports, dashboards, and data visualizations to summarize large volumes of data and facilitate understanding.
  • The main objective of BI is to provide a historical view of the data to help businesses understand past trends, patterns and relationships and make informed decisions based on this information.

Business Analytics (BA):

  • BA focuses on predictive and prescriptive data analysis to understand what could happen in the future and how to achieve desired results.
  • It relies on advanced statistical analysis and modeling techniques to identify emerging trends, predict future outcomes, and recommend specific actions.
  • BA tools typically include predictive analytics, statistical modeling, data mining, artificial intelligence and machine learning to discover hidden information in data and make predictions.
  • The primary goal of BA is to use data to anticipate future events, identify opportunities and risks, and make proactive decisions to improve business performance.

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How to use business intelligence in managing your ecommerce?

Using Business Intelligence effectively in global e-commerce can provide a significant competitive advantage. Helping you better understand customer behavior, optimize the supply chain, adjust pricing and marketing strategies, and make informed, data-driven decisions.

These are some ways to use BI in an ecommerce, especially on a global scale:

Customer Data Analysis:

  • Use BI to collect and analyze data about the customer behavior in different geographic regions.
  • Identify purchasing patterns, product preferences, and browsing behaviors to segment customers and personalize shopping experiences based on location, language, and cultural preferences.

User Experience Optimization:

  • Analyze browsing data and user behavior to identify points of friction in the purchasing process.
  • Use BI to optimize website design, navigation, and user experience to increase conversions and improve customer retention in different global markets.

Inventory and Distribution Management:

  • Use BI to analyze sales data, demand trends, and inventory forecasts across different geographic regions.
  • Optimize inventory levels and supply chain planning to meet real-time demand and minimize storage and transportation costs.

Price and Competition Analysis:

  • Use BI to monitor and analyze pricing and competitor data in different global markets.
  • Adjust pricing and promotion strategies to be competitive in each market and maximize profitability.

Marketing Campaign Management:

  • Use BI to analyze the performance of marketing campaigns across different regions and marketing channels.
  • Adjust marketing strategies and allocate budgets efficiently to maximize return on investment (ROI) in each global market.

Market Trend Analysis:

  • Use BI to analyze market trends, changes in demand and consumer behaviors in different regions.
  • Identify new market opportunities and anticipate changes in consumer preferences to adapt commercial and product strategies.

Data Integration:

  • Implement BI systems that can integrate data from multiple sources, such as order management systems, customer relationship management (CRM) systems, social media, and third-party data.
  • Ensures data consistency and quality for accurate and reliable analytics in a diverse global environment.

Relationship between APM (Application Performance Monitoring) and Business Intelligence (BI) 

El APM (Application Performance Monitoring) and Business Intelligence (BI) are closely related in the context of managing and optimizing the performance of business applications.

Although they are different disciplines, they complement each other to provide a complete view of application performance and its impact on the business.

Application Performance Monitoring and Analysis contributes to business intelligence. Since APM focuses on monitoring and analyzing the technical performance of applications, such as loading speed, server response times, availability, and scalability.

BI can use the data collected by APM tools to analyze the performance impact of ecommerce applications, such as the effect on sales, customer satisfaction, and user retention.

On the other hand, it also contributes to the Identification of Problems and Opportunities for Improvement. APM helps identify performance issues in applications, such as bottlenecks, code errors, and downtime.

BI can analyze this data to identify trends and patterns in application performance, as well as opportunities for improvement in infrastructure, application design, and user experience. A critical aspect in the success of modern e-commerce businesses.

Now is your turn!

Business intelligence in ecommerce is a high-impact technological and innovative advancement that has drastically altered the way modern businesses approach customer service and sales. 

With the help of the numerous benefits of business intelligence, you can easily target your target market and achieve your goals of increasing profitability.

If you need help with your ecommerce monitoring, business intelligence tools and actions, contact us here today to chat.