novomind, the Hamburg-based IT service provider, has researched the use of business intelligence (BI) by online shops. One of the key findings of the latest novomind studies is that the industry’s confidence in BI is growing, as it has proven to help improve the conversion rate and boost sales revenues.
86 percent were able to improve their conversion rate
The use of business intelligence (BI) for the optimisation of online shops is becoming increasingly widespread. 65 percent of the e-commerce operators already use BI solutions to increase the performance of their online shops and stay competitive, with another 24 percent firmly planning to do so. At present, it is mainly large enterprises which rely on BI; 82 percent of the enterprises employing 500 or more people already use BI solutions, which are particularly widespread in the furniture/home accessories and shoes categories.
The study also shows that almost 75 percent of the respondents use BI primarily to optimise their conversion rate. And they are doing so for good reason, as the survey revealed that 86 percent of the BI users were able to increase their conversion rate - a good half of them even speaking of a “significant” increase. Further improvements resulting from the use of BI data include customers buying more products and the respective e-shop processes being optimised (86 percent each), easier navigation through the shop (76 percent) and e-commerce operators being able to act more quickly (72 percent).
These figures show that the use of BI pays off in many respects.
Real-time BI data for increased performance
Another result of the study is that 64 percent of the respondents find it important that they can respond to customers’ behaviour in real time. The novomind iSHOP is one of only few e-commerce platforms allowing such a real-time response. This contrasts with only 50 percent of the online shops whose systems already deliver BI data on a real-time basis, “although this would have a very positive impact,” says Thomas Köhler. “Our experience and our study show that two in three online shops which have switched to real-time BI data were able to boost their performance significantly.” This is also confirmed by the study, according to which the conversion rates of two thirds of the real-time users improved markedly.
These are the results of a new study based on computer-assisted telephone interviews (CATI) on “Business Intelligence in Online-Shops” conducted by Germany’s forsa Institute on behalf of novomind, Hamburg. For the study, the researchers interviewed 100 IT officers and customer care officers from companies operating online shops.
Since 1999 Hamburg-based novomind has been developing innovative eBusiness software solutions for the modern Internet world in four e-business segments: e-commerce (eShops and zoom server), PIM (Product Information Management), e-marketplace (marketplace integration) and e-communication (solutions for contact and service centres). In each of these performance segments, novomind ranks among the technology leaders in Europe. The company covers the entire digital value chain of trade and electronic customer communications.
novomind AG currently serves more than 80 companies, including C&A, frontlineshop, Der Club Bertelsmann, Ernsting’s family and OTTO in the e-commerce segment.