{"id":5336,"date":"2014-06-24T20:47:05","date_gmt":"2014-06-24T15:17:05","guid":{"rendered":"http:\/\/ivyproschool.com\/blog\/?p=5336"},"modified":"2024-11-15T15:07:57","modified_gmt":"2024-11-15T09:37:57","slug":"how-predictive-analytics-drives-competitive-advantage-in-online-retailing","status":"publish","type":"post","link":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/","title":{"rendered":"How Predictive Analytics drives Competitive Advantage in Online Retailing"},"content":{"rendered":"<p>A sneak peek into the new budget of the Modi Government reveals plans to <a href=\"http:\/\/in.reuters.com\/article\/2014\/06\/04\/india-retail-idINKBN0EF0ME20140604\">open up India&#8217;s $500 billion retail sector to global online retailers<\/a> such as Wal-Mart Stores and Amazon. With this the competition in Indian online retail industry heats up as online retailers jostle the e-commerce space to engage customer activity.<\/p>\n<p>Online retailing in India took off in the last 7 years growing at a compounded annual growth rate (CAGR) of over 56 per cent from around Rs 15 billion revenues in 2007-08 to Rs 139 billion in 2012-13. This was driven by increasing internet penetration, changing lifestyles, improved middle class purchasing power and robust use of credit cards. While it is further estimated that Indian online retail industry will reach Rs 504 billion by 2015-16, one can definitely expect a further revision in the estimate with implementation of post-budgetary reforms.<\/p>\n<p>The concept of purchasing online has caught the fancy of Indians because of the convenience of online product research, comparison shopping and competitive pricing, besides the comfort of home delivery. Flipkart, Jabong,Quikr and more \u2013 India\u2019s Rs 18,000 crore\u00a0online retail industry\u00a0is growing at a rapid pace. With a diverse range of listings and loads of data on the buying and selling patterns, Big Data analytics is deeply ingrained in the DNA of these online platform.<\/p>\n<p>As a student of analytics <a href=\"https:\/\/ivyproschool.com\/blog\/blog\/2013\/11\/17\/a-rundown-on-analytics-friendly-big-data-technologies\/\" target=\"_blank\" rel=\"noopener noreferrer\">learning the\u00a0SAS\u00a0\/ SPSS<\/a>\u00a0, you\u2019ll be excited to know that <a href=\"http:\/\/www.sas.com\/en_us\/home.html\" target=\"_blank\" rel=\"noopener noreferrer\">SAS<\/a> &amp; <a href=\"http:\/\/www-01.ibm.com\/software\/in\/analytics\/spss\/\" target=\"_blank\" rel=\"noopener noreferrer\">IBM-SPSS<\/a> products are in popular use by online retailers. These drill through multiple levels of data &#8211; visitor navigation, search trends, buying and selling patterns\u00a0\u2013 to understand customer\/ visitor profile, his needs or expectations, \u00a0for a competitive advantage.<\/p>\n<p>Big Data analytics is leveraged for actionable insights, to build descriptive and \u00a0predictive modelling algorithms\u00a0(decision trees, bagging and boosting, linear and logistic regression, neural networks, memory based reasoning, partial least squares, heirarchical clustering, self-organised maps, sequence and Web path analysis) and strategise implementations.<\/p>\n<p>Product offers, advertising strategies, SoMoLo (Social, Mobile, Location) engagement, identifying profitable customer segments, and assessing credit worthiness are some of the actions based on the insights.<\/p>\n<p><strong>Some typical cases of analytics-in-action in online retailing<\/strong>:<\/p>\n<p>Targeted advertising \u00a0&#8211; A customer looking for children\u2019s clothing is grouped as a \u2018parent\u2019 \/ \u2018relative\u2019 and offered targeted advertising based on the search criteria. From clothing sizes browsed, an insight is obtained into the child\u2019s age group &#8211; based on which predictive ads \/ listings are put up to cater to the customer preferences.<\/p>\n<p>Predictions &#8211; By analysing time series and correlating it with external variables like weather, festivals and competition, predictions are made to understand various metrics like sale volumes, fast-selling items, visitor profiles, and so on.<\/p>\n<p>Competitive Benchmarking &#8211; It is\u00a0used for comparing the online retail operations against those of the competitor&#8217;s to gain information about market trends, customer habits, vendor practices, \u00a0promotional campaigns, \u00a0and geographic \/ location penetration.<\/p>\n<p><a href=\"http:\/\/www.exactdrive.com\/news\/bid\/242553\/Behavioral-Targeting-Definition\">Behavioural targeting<\/a> \u2013 Analytics helps to leverage real-time contextual advertising based on customer browsing behaviour, buying history and inferred psychographics. So if a visitor is looking for travel bags in the luxury category, he is targeted with advertisements of travel insurance plans.<\/p>\n<p><a href=\"http:\/\/visualwebsiteoptimizer.com\/split-testing-blog\/behavioral-targeting\/\">Geo-behavioural targeting<\/a> makes use of many variables like location, referring URL, device used and so on, to target content based on location. For instance, a browser located in Sikkim with a buying history of apparel will be targeted with listings \/ offers of warm jackets and similar products.<\/p>\n<p>So now you know why if you are a student of social science, MBA or IT, additionally equipped with analytics training you would be a preferred candidate in analytics hiring!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gain an insight into how online retailers leverage predictive analytics to gain competitive advantage in an aggressive online retailing landscape. By uncovering hidden insights in customer or browsing data, personalized experiences are created to win more business, and for optimising people, processes and products to maximise profits.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[428,424,425,421,429,165,423,207,426,140,427],"class_list":["post-5336","post","type-post","status-publish","format-standard","hentry","category-data-analytics","tag-behavioural-targeting","tag-competitive-advantage","tag-competitive-benchmarking","tag-e-commerce","tag-geo-behavioural-targeting","tag-india","tag-online-retail-industry","tag-online-retailing","tag-prediction","tag-predictive-analytics","tag-targeted-advertising"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Predictive Analytics Drives Competitive Advantage in Online Retailing<\/title>\n<meta name=\"description\" content=\"Discover how online retailers in India leverage predictive analytics for targeted advertising, competitive benchmarking, and customer behavior insights to stay ahead.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Predictive Analytics Drives Competitive Advantage in Online Retailing\" \/>\n<meta property=\"og:description\" content=\"Discover how online retailers in India leverage predictive analytics for targeted advertising, competitive benchmarking, and customer behavior insights to stay ahead.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/\" \/>\n<meta property=\"og:site_name\" content=\"R vs Python: Which Analytics Tool Should You Choose for Data Science?\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/ivyproschool\" \/>\n<meta property=\"article:published_time\" content=\"2014-06-24T15:17:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-15T09:37:57+00:00\" \/>\n<meta name=\"author\" content=\"Ivy Professional School\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ivyproschool\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ivy Professional School\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\\\/\"},\"author\":{\"name\":\"Ivy Professional School\",\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/#\\\/schema\\\/person\\\/31fdab8559dd3db99173764bfb60215d\"},\"headline\":\"How Predictive Analytics drives Competitive Advantage in Online Retailing\",\"datePublished\":\"2014-06-24T15:17:05+00:00\",\"dateModified\":\"2024-11-15T09:37:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\\\/\"},\"wordCount\":599,\"commentCount\":0,\"keywords\":[\"behavioural targeting\",\"competitive advantage\",\"competitive benchmarking\",\"e-commerce\",\"geo-behavioural targeting\",\"India\",\"online retail industry\",\"online retailing\",\"prediction\",\"predictive analytics\",\"targeted advertising\"],\"articleSection\":[\"Data Analytics\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\\\/\",\"url\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\\\/\",\"name\":\"How Predictive Analytics Drives Competitive Advantage in Online Retailing\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/#website\"},\"datePublished\":\"2014-06-24T15:17:05+00:00\",\"dateModified\":\"2024-11-15T09:37:57+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/#\\\/schema\\\/person\\\/31fdab8559dd3db99173764bfb60215d\"},\"description\":\"Discover how online retailers in India leverage predictive analytics for targeted advertising, competitive benchmarking, and customer behavior insights to stay ahead.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How Predictive Analytics drives Competitive Advantage in Online Retailing\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/\",\"name\":\"Ivy Professional School | Official Blog\",\"description\":\"Confused between R and Python for your data science journey? Discover the key differences in data visualization, handling capabilities, speed, and ease of learning.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/#\\\/schema\\\/person\\\/31fdab8559dd3db99173764bfb60215d\",\"name\":\"Ivy Professional School\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/866b09293f13d461b399bb9a40607e85623ede13d844f763bf665689cb0d1452?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/866b09293f13d461b399bb9a40607e85623ede13d844f763bf665689cb0d1452?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/866b09293f13d461b399bb9a40607e85623ede13d844f763bf665689cb0d1452?s=96&d=mm&r=g\",\"caption\":\"Ivy Professional School\"},\"sameAs\":[\"http:\\\/\\\/www.ivyproschool.com\",\"https:\\\/\\\/facebook.com\\\/ivyproschool\",\"https:\\\/\\\/instagram.com\\\/ivyproschool\",\"https:\\\/\\\/x.com\\\/ivyproschool\",\"https:\\\/\\\/youtube.com\\\/ivyproschool\"],\"url\":\"https:\\\/\\\/ivyproschool.com\\\/blog\\\/author\\\/prateek\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How Predictive Analytics Drives Competitive Advantage in Online Retailing","description":"Discover how online retailers in India leverage predictive analytics for targeted advertising, competitive benchmarking, and customer behavior insights to stay ahead.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/","og_locale":"en_US","og_type":"article","og_title":"How Predictive Analytics Drives Competitive Advantage in Online Retailing","og_description":"Discover how online retailers in India leverage predictive analytics for targeted advertising, competitive benchmarking, and customer behavior insights to stay ahead.","og_url":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/","og_site_name":"R vs Python: Which Analytics Tool Should You Choose for Data Science?","article_author":"https:\/\/facebook.com\/ivyproschool","article_published_time":"2014-06-24T15:17:05+00:00","article_modified_time":"2024-11-15T09:37:57+00:00","author":"Ivy Professional School","twitter_card":"summary_large_image","twitter_creator":"@ivyproschool","twitter_misc":{"Written by":"Ivy Professional School","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/#article","isPartOf":{"@id":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/"},"author":{"name":"Ivy Professional School","@id":"https:\/\/ivyproschool.com\/blog\/#\/schema\/person\/31fdab8559dd3db99173764bfb60215d"},"headline":"How Predictive Analytics drives Competitive Advantage in Online Retailing","datePublished":"2014-06-24T15:17:05+00:00","dateModified":"2024-11-15T09:37:57+00:00","mainEntityOfPage":{"@id":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/"},"wordCount":599,"commentCount":0,"keywords":["behavioural targeting","competitive advantage","competitive benchmarking","e-commerce","geo-behavioural targeting","India","online retail industry","online retailing","prediction","predictive analytics","targeted advertising"],"articleSection":["Data Analytics"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/","url":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/","name":"How Predictive Analytics Drives Competitive Advantage in Online Retailing","isPartOf":{"@id":"https:\/\/ivyproschool.com\/blog\/#website"},"datePublished":"2014-06-24T15:17:05+00:00","dateModified":"2024-11-15T09:37:57+00:00","author":{"@id":"https:\/\/ivyproschool.com\/blog\/#\/schema\/person\/31fdab8559dd3db99173764bfb60215d"},"description":"Discover how online retailers in India leverage predictive analytics for targeted advertising, competitive benchmarking, and customer behavior insights to stay ahead.","breadcrumb":{"@id":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ivyproschool.com\/blog\/how-predictive-analytics-drives-competitive-advantage-in-online-retailing\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ivyproschool.com\/blog\/"},{"@type":"ListItem","position":2,"name":"How Predictive Analytics drives Competitive Advantage in Online Retailing"}]},{"@type":"WebSite","@id":"https:\/\/ivyproschool.com\/blog\/#website","url":"https:\/\/ivyproschool.com\/blog\/","name":"Ivy Professional School | Official Blog","description":"Confused between R and Python for your data science journey? Discover the key differences in data visualization, handling capabilities, speed, and ease of learning.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ivyproschool.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/ivyproschool.com\/blog\/#\/schema\/person\/31fdab8559dd3db99173764bfb60215d","name":"Ivy Professional School","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/866b09293f13d461b399bb9a40607e85623ede13d844f763bf665689cb0d1452?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/866b09293f13d461b399bb9a40607e85623ede13d844f763bf665689cb0d1452?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/866b09293f13d461b399bb9a40607e85623ede13d844f763bf665689cb0d1452?s=96&d=mm&r=g","caption":"Ivy Professional School"},"sameAs":["http:\/\/www.ivyproschool.com","https:\/\/facebook.com\/ivyproschool","https:\/\/instagram.com\/ivyproschool","https:\/\/x.com\/ivyproschool","https:\/\/youtube.com\/ivyproschool"],"url":"https:\/\/ivyproschool.com\/blog\/author\/prateek\/"}]}},"_links":{"self":[{"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/posts\/5336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/comments?post=5336"}],"version-history":[{"count":1,"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/posts\/5336\/revisions"}],"predecessor-version":[{"id":12700,"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/posts\/5336\/revisions\/12700"}],"wp:attachment":[{"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/media?parent=5336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/categories?post=5336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ivyproschool.com\/blog\/wp-json\/wp\/v2\/tags?post=5336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}