Written by

Bernard Marr

Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity. He is a best-selling author of 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations. He has over 2 million social media followers, 1 million newsletter subscribers and was ranked by LinkedIn as one of the top 5 business influencers in the world and the No 1 influencer in the UK.

Bernard’s latest book is ‘Business Trends in Practice: The 25+ Trends That Are Redefining Organisations’

View Latest Book

Follow Me

Bernard Marr ist ein weltbekannter Futurist, Influencer und Vordenker in den Bereichen Wirtschaft und Technologie mit einer Leidenschaft für den Einsatz von Technologie zum Wohle der Menschheit. Er ist Bestsellerautor von 20 Büchern, schreibt eine regelmäßige Kolumne für Forbes und berät und coacht viele der weltweit bekanntesten Organisationen. Er hat über 2 Millionen Social-Media-Follower, 1 Million Newsletter-Abonnenten und wurde von LinkedIn als einer der Top-5-Business-Influencer der Welt und von Xing als Top Mind 2021 ausgezeichnet.

Bernards neueste Bücher sind ‘Künstliche Intelligenz im Unternehmen: Innovative Anwendungen in 50 Erfolgreichen Unternehmen’

View Latest Book

Follow Me

Amazon: Using Big Data to understand customers

23 July 2021

How Amazon uses Big Data in practice

Amazon has thrived by adopting an “everything under one roof” model. However, when faced with such a huge range of options, customers can often feel overwhelmed. They effectively become data-rich, with tons of options, but insight-poor, with little idea about what would be the best purchasing decision for them.

To combat this, Amazon uses Big Data gathered from customers while they browse to build and fine-tune its recommendation engine. The more Amazon knows about you, the better it can predict what you want to buy. And, once the retailer knows what you might want, it can streamline the process of persuading you to buy it – for example, by recommending various products instead of making you search through the whole catalogue.

Amazon’s recommendation technology is based on collaborative filtering, which means it decides what it thinks you want by building up a picture of who you are, then offering you products that people with similar profiles have purchased.

Amazon gathers data on every one of its customers while they use the site. As well as what you buy, the company monitors what you look at, your shipping address (Amazon can take a surprisingly good guess at your income level based on where you live), and whether you leave reviews/feedback.

This mountain of data is used to build up a “360-degree view” of you as an individual customer. Amazon can then find other people who fit into the same precise customer niche (employed males between 18 and 45, living in a rented house with an income of over $30,000 who enjoy foreign films, for example) and make recommendations based on what those other customers like.

The technical details

Amazon collects data from users as they navigate the site, such as the time spent browsing each page. The retailer also makes use of external datasets, such as census data for gathering demographic details.

Amazon’s core business is handled in its central data warehouse, which consists of Hewlett-Packard servers running Oracle on Linux.

Ideas and insights you can steal

Too much choice and too little guidance can overwhelm customers and put them off making purchasing decisions. Recommendation engines simplify the task of predicting what a customer wants, by profiling them and looking what people who fit into similar niches buy. In this way, developing a 360-degree view of your customers as individuals is the foundation of Big Data-driven marketing and customer service.

You can read more about how Amazon is using Big Data to drive success in Big Data in Practice: How 45 Successful Companies Used Big Data Analytics to Deliver Extraordinary Results.

Business Trends In Practice | Bernard Marr
Business Trends In Practice | Bernard Marr

Related Articles

What Tech Trends Should Companies Focus on in 2023? Here Are Three to Consider (And One to Ignore)

It’s common to hear it said that today, in order to thrive, every business needs to become a tech business.[...]

The Top 10 In-Demand Skills For 2030

What will the world be like in 2030? Well, obviously, no one knows for sure, but we have some interesting predictions:[...]

Beyond Dashboards: The Future Of Analytics And Business Intelligence?

Analytics and business intelligence (BI) have long been understood to be fundamental to business success.[...]

The Top 5 Data Science And Analytics Trends In 2023

Today, information can be captured from many different sources, and technology to extract insights is becoming increasingly accessible.[...]

The 5 Biggest Business Trends In 2023 Everyone Must Get Ready For Now

Businesses have faced huge challenges and have undergone an incredible amount of change over the past few years, and this won’t slow down in 2023.[...]

8 Simple Ways To Enhance Your Data Literacy Skills

We’re living through the fourth industrial revolution (or “Industry 4.0”), a revolution that’s defined by wave upon wave of new technologies that combine the physical and digital worlds.[...]

Stay up-to-date

  • Get updates straight to your inbox
  • Join my 1 million newsletter subscribers
  • Never miss any new content

Social Media

0
Followers
0
Followers
0
Followers
0
Subscribers
0
Followers
0
Subscribers
0
Yearly Views
0
Readers

Podcasts

View Podcasts