Optimizing E-commerce Growth with Data-Driven Insights

Learn how data-driven marketing and sales can benefit from Wren AI Cloud as a Business Intelligence AI Agent.

Yadia
Product Management Advisor
September 24, 2024
September 25, 2024
•
5 min read

Learn how data-driven marketing and sales can benefit from Wren AI Cloud as a Business Intelligence AI Agent.

Introduction

E-commerce teams may require assistance in increasing sales and improving customer satisfaction as their product range expands. E-commerce stores can access a wealth of data, including order volume, reviews, and customer information, but they may need help effectively utilizing it. Unlike Amazon [1] and Walmart [2], not all stores have the resources to implement a comprehensive data analytics strategy to enhance performance and boost sales. Small and medium-sized businesses (SMBs) can benefit from incorporating Business Intelligence AI Agents into their teams. A Business Intelligence AI Agent (BI AI Agent) is a tool that combines artificial intelligence and data analytics to assist businesses in making more informed decisions based on their data.

E-commerce and the customer journey data

E-commerce platforms like WooCommerce, Magento, and Shopify are essential for building and running online stores. But behind the scenes, the customer journey generates massive data from website visits, purchases, and post-sale interactions. This data is often scattered across different systems, making it challenging to analyze and leverage for business growth.


Imagine having a tool that could unify all this data into a single, easily accessible platform. With Wren AI Cloud, you can ask questions in plain English and instantly get data-backed answers. For example, you could ask, ‘Which products are selling the best in Sao Paulo, Brazil?’ or ‘What are the top 5 email marketing campaigns driving more website traffic?’ Wren AI Cloud would provide the insights you need to make data-driven decisions and optimize your e-commerce operations.

Customer Journey Map for an e-commerce website generate with creative AI.

Wren AI Cloud and E-commerce Data

To demonstrate the capabilities of Wren AI Cloud as a BI AI Agent, we’ve conducted an analysis using the Brazil E-commerce Order Database from Kaggle[3]. This extensive dataset from 2016 to 2018 provides a comprehensive view of consumer shopping behavior across various marketplaces. By connecting this data with Wren AI Cloud, we can uncover insights that would otherwise be difficult to obtain using just chat.

E-commerce data model in Wren AI Cloud

Identifying high and under-performing products

Understanding the performance of products is essential for both sales and marketing team’s efforts. By identifying high-performing products, marketing teams can focus their resources on promoting them and develop targeted campaigns to boost sales further.
In contrast, identifying underperforming products allows for a more strategic approach toward the brand image and sales. Sales teams can reallocate their resources to more high-performing areas, and marketing teams can analyze the reason behind the underperformance.
One method for identifying high-performing products is to rank them based on total sales over a specific period. This approach provides a clear picture of which customers often purchase products.
Segmenting products by category can help identify top performers within each niche. This is particularly valuable for e-commerce shops with a diverse product portfolio.

Customer Segmentation

Customer segmentation allows business teams to divide the customer base into smaller groups based on their shared characteristics [4]. Businesses can create highly targeted marketing campaigns by dividing customers into segments based on location, purchase history, and shipping preference.

For example, a company might segment customers based on their geographic location and target each segment with promotions for popular products in their region. Similarly, customers who have a history of purchasing a particular product category can be targeted with exclusive offers or loyalty programs.

To effectively segment customers, start by defining the criteria that are most relevant to your business. This might include geographic location, demographics, purchase history, or other factors. Ensure that your data model contains the necessary information to identify customers within these segments.

Once you have defined your segmentation criteria, you can use Wren AI Cloud to create a customer segment list. Wren will query your database to identify the customers with specific characteristics and generate a list that can be exported and used in your favorite newsletter software.

Gif animation of a segmentation question to understand the cities with the most sales.

Improve Service from Customer Reviews

People like having satisfied customers. Having 1-star reviews on a product can become an invaluable opportunity for business to improve their product, services, and customer experience. Companies can identify common issues and trends impacting customer satisfaction by analyzing customer reviews using tools like Wren AI Cloud.
This data can inform improvements in customer service, sales, and marketing. For example, if a product consistently receives negative reviews for a particular issue, the customer service team can develop tailored solutions or provide more comprehensive support. Sales teams can also use this information to address concerns and ensure customers’ purchases are satisfied proactively.
Additionally, understanding the reasons behind negative reviews can help marketing teams tailor their messaging and communication to be more empathetic and responsive to customer concerns. By addressing customer pain points directly, businesses can build trust and loyalty.
One method for obtaining this information is to combine the data from customer reviews and order information. This allows for a more comprehensive analysis of the customer experience and helps identify patterns that may be contributing to negative feedback.

Conclusion:

The e-commerce landscape continues to evolve. Learning to harness the power of customer data can help businesses proactively engage in their sales and marketing strategies. Wren AI Cloud empowers business teams to make data-driven decisions that drive growth and success.


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References

  1. Lomas, N. (2014, January 18). Amazon patents “anticipatory” shipping — To start sending stuff before you’ve bought it.Techcrunch. Retrieved from https://www.wsj.com/articles/BL-DGB-32082
  2. Krishna Prasad K., & Vikranth Kadya. (2020). The sustained improvements in e-commerce business through big data and data analytics of Wal-Mart Company. International Journal of Case Studies in Business, IT, and Education (IJCSBE), 4(2), 28–39
  3. Mehmet Isik (2024).Brazil E-commerce Orders Database 2016–2018. Retrieve from Kaggle’s https://www.kaggle.com/datasets/mehmetisik/order-customerrfm/data
  4. Jolaoso, C. (2024, June 14). Customer segmentation: The ultimate guide. Forbes Advisor. Retrieved from https://www.forbes.com/advisor/business/customer-segmentation/

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