Amazon’s Big Data Strategy
Amazon Inc., one of the biggest online retail giants, is currently utilizing big data to create product suggestions for their customers. These products show up as suggestions to the user based on their shopping habits.
By analyzing what you have previously purchased, what is in your cart, or what you have browsed;
Amazon will recommend and promote other products that you might be interested in purchasing.
Typically, these items are in the same category or compliment something previously viewed, such as coffee pods for the new coffee maker you researched. In a way, think of these Amazon recommendations as a personalized grocery store checkout lane full of potential impulse buys.
Amazon already has an idea of what you are looking to buy now all they need to do is show you items that complement the current product.
Not all companies have the ability or want to utilize online data in the same way as Amazon but can benefit from smaller scale applications. A great example of this is displaying related products on the website while customers are checking out. If someone is interested in purchasing a coffee mug, they might also be interested in a bag of coffee beans as well. Another way to increase online sales could be by offering products in a package deal for a small discount. The consumer is already interested in one of the products and having a small price break could be enough incentive to purchase the set instead of individual items. Utilizing online consumer data can help determine which products and specials should be promoted to specific customer groups — in turn, increasing the overall ROI on your online advertising efforts.