Preview

How eBay Uses Data and Analytics to Get Closer to Its Customer Base

Good Essays
Open Document
Open Document
2512 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
How eBay Uses Data and Analytics to Get Closer to Its Customer Base
3/20/2014

How eBay Uses Data and Analytics to Get Closer to Its (Massive) Customer Base | MIT Sloan Management Review

How eBay Uses Data and Analytics to Get Closer to Its (Massive)
Customer Base
Big Idea: Data & Analytics • Interview • June 25, 2013 • Reading Time: 11 min
Neel Sundaresan (eBay), Interviewed by Renee Boucher Ferguson

Online auction site eBay uses data about the behavior of its millions of customers to drive analytics at every level of the organization, and get closer to its customers.
You can find just about anything on eBay: A vintage BMW, a Lear jet, a

advertisement

half-million-dollar yacht. Or perhaps a domain name, industrial equipment, software and services from the likes of IBM, a food safari in
San Francisco. Or even a previously undiscovered species, such as
Coelopleurus exquisitus, a heretofore-unknown sea urchin sold on eBay.
The e-commerce giant has localized operations in over 30 countries, with 100 million registered users. The latest number of sellers listed by eBay in 2009 is well in excess of 1.5 million (it’s hard to tell the exact number of sellers, given buyers are often sellers and vice versa).
From all that activity stems a lot of data and, eventually, information — which eBay is capitalizing upon through the use of data analytics research. The results: eBay is much closer to its tremendous customer base than ever before, and it is able to iterate faster on fulfilling customer requirements.

http://sloanreview.mit.edu/article/how-ebay-uses-data-and-analytics-to-get-closer-to-its-massive-customer-base/

1/7

3/20/2014

How eBay Uses Data and Analytics to Get Closer to Its (Massive) Customer Base | MIT Sloan Management Review

In a conversation with MIT Sloan Management
Review contributing editor Renee Boucher Ferguson,
Neel Sundaresan, senior director of research at eBay discusses how the company uses data and analytics at every level to continuously evolve eBay’s numerous

You May Also Find These Documents Helpful

  • Good Essays

    Project Deliverable 1

    • 966 Words
    • 6 Pages

    In an uber globalized market of today, companies are faced with challenges in each and every step of their business. Our analytics and research services are geared towards giving those companies that extra edge over the competition. We process and analyze terabytes of data and break down all the fuzz and chatter around it to give our customers meaningful insights about their competition and the market they are engaged in.…

    • 966 Words
    • 6 Pages
    Good Essays
  • Best Essays

    Kudler is looking for ways to increase sales and customer satisfaction. To achieve this goal Kudler will use data mining tools to predict future trends and behaviors to allow them to make proactive, knowledge-driven decisions. Kudler’s marketing director has access to information about all of its customers: their age, ethnicity, demographics, and shopping habits. The starting point will be a data warehouse containing a combination of internal data tracking all customers contact coupled with external market data about competitor activity. Background information on potential customers also provides an excellent basis for prospecting.…

    • 1512 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    531 Paper1

    • 3009 Words
    • 10 Pages

    To enhance the competition, ambition and efficiency, the realm of retail, like many other industries have accrued a range of software applications over time from the warehouse to the point of sale. Big Data can launch merchandising and operational effectiveness that reduce costs; lead to a plan of action to understand customers even before they realize what they want and provide information to considerably revise marketing, sales and customer relationships. However, deploying Big Data applications and infrastructure to underpin them can result in a…

    • 3009 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Macy's

    • 528 Words
    • 2 Pages

    Macy's is using the Differentiation Strategy according to the Porter’s 3 strategies model. The market is very competitive and already saturated. It is hard to differentiate themselves with the products itself; consequently, it is the quality of service that Macy's is targeting. Macy's main target is to offer more localized, personalized and smarter retail customer experience across all channels. In order to achieve this, they use Big Data among others to create a personalized customer experience including customized incentives at checkouts. Macy's increased its analytical capabilities with implementing the SAS® Enterprise Miner™ resulting in providing valuable customers with the right promotions in order to serve them the best way possible. Even more, they are now capable of sending hyper-targeted direct mailings to their customers, including 500.000 unique versions of a single mailing! Successful differentiation is displayed when a company accomplishes either a premium price for the product or service, increased revenue, or the consumers' loyalty to purchase the company's product or service (brand loyalty). In Macy's case, they could brilliantly achieve the later two of those KPI's. The new centralized online fulfillment centre came at a cost of $ 170 million. However, thanks to Big Data, they increased store sales with 10 percent over the past years. In 2012 alone, Macy's reported sales of $ 27.7 billion. Taking into account that merely three years ago they were still relying on Excel for insights, this is a noteworthy…

    • 528 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    23). Target Corporation prides itself on the research and marketing front as one of the most diligent companies to know how to reach the customers and get the necessary information to ensure the goals of the company are met. For instance, Target has long used customer analytics to make marketing decisions and assess how successful the company is at reaching the prime Target consumer. “Target starts by analyzing its collection data to understand the needs of each customer,” while simultaneously studying marital status, age, gender, household income, occupation, and many other specific details about the consumers who frequent their locations (Corrigan, Craciun, & Powell, 2014). This form of data mining, while extremely controversial is also extremely beneficial to evaluating how well the company is reaching certain consumers and how well the company is performing.…

    • 1688 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    This article introduces the utilization of cluster analysis as a data mining tool. E-commerce has forced traditional businesses to reform their decision making processes and conduct its affairs based on activities occurring online. Monitoring web traffic is not a sufficient metric tool to measure success and therefore a system of conversion rates is utilized to determine profitability. Not everyone who visits a website purchases a product and the author describes several factors that lead to an unsuccessful visit to sales ratio. Retailers use websites to garner insight into customer activity and base decisions, but lack of sales conversions has prompted the author to conduct a cluster analysis between retailers that are solely web based and those that conduct business both from a storefront and online. Cluster analysis is a data mining technique that divides information into specific groups that provide insight and information for customer relationship management systems.…

    • 2553 Words
    • 11 Pages
    Powerful Essays
  • Better Essays

    Analytics competitors are leaders in their varied fields consumer products, finance, retail, and entertainment. For organizations to become and prosper as an analytics competitor they must use analytics data because many industries offer similar products and use comparable technologies, business processes are among the last remaining points of differentiation. And analytics competitors use every possible analytics value from these processes. In order for organizations to prosper they must know what products their customers want, what prices those customers will pay, how many items each will buy in a lifetime, and what triggers will make people buy more. They must know the compensation costs and turnover rates, and they can also calculate how much personnel contribute to or detract from the bottom line and how salary levels relate to individuals’ performance (Davenport, 2006). Organizations can prosper when they rely on analytics date to help them know when inventories are running low, and they can predict problems with the demand and supply chains, to achieve low rates of inventory and high rates of prefect orders. We have already established that analytics are leaders in a varied of fields, and the important an organization need these top leaders to coordinate strategy and pushed down to decision makers at every level. These leaders are trained to recognize and used their expertise to get the best evidence and the best quantitative tools to make the best decisions, whether big or small every day to help their organizations succeed.…

    • 1574 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    Cio's Office Summary

    • 199 Words
    • 1 Page

    Information, insights and foresights impact every aspect of business. It has been established that organizations leveraging analytics to differentiate themselves at the front with standardization at the core are able to create sustainable competitive advantage. Similarly, analytics is enabling enterprises predict customer behavior, meet their needs and cement long-term relationships. Significantly, leading analysts have suggested that…

    • 199 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    There are many different business trends shaping e-commerce today. For one, ecommerce remains the fastest growing form of commerce when compared to physical retain store, services, and entertainment. Another trend is that the online demographics of shoppers broaden to match those of ordinary shoppers. Also, small businesses and entrepreneurs continue to flood through the e-commerce marketplace, often riding on the infrastructures created by industry giants and increasingly taking advantage of cloud-based computing resources. Lastly, pure e-commerce business models are refined further to achieve higher levels of profitability, whereas traditional retail brands use e-commerce to retain their dominant retail positions.…

    • 1925 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    In order to succeed in today’s highly competitive market more and more businesses regardless of their size or structure are looking for easier ways to communicate with the outside world; for that reason they are considering the incorporation of electronic commerce (e-commerce) into their business plans. Some of the ways that small businesses can benefit from e-commerce and internet trading is reduced advertising, promotion costs and at the same time they are able to increase the amount of consumer demographic information they collect as it is done easier and faster over the internet than with a traditional way of advertisement. We all know that well informed business is able to understand consumer purchasing patterns and make appropriate decisions in order to enhance customer-service and…

    • 8462 Words
    • 34 Pages
    Good Essays
  • Good Essays

    “The difference between the winners and losers in retail increasingly comes down to one factor: tech savvy” (Sherman, 2012). The retail marketplace is increasingly competitive and therefor undergoing constant change to attract and convert consumers. According to the survey conducted by the retail consulting firm RSR, “firms that outperform industry averages for annual same-store sales comparisons tend to use and understand specialized computer software tools to manage specific aspects of merchandising” (Sherman, 2012).…

    • 708 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Ebay History

    • 3450 Words
    • 14 Pages

    Millions of buyers and sellers have made eBay Inc. the world's largest and most popular Internet site for individuals and businesses to exchange goods. By 1999 eBay had 5.6 million registered users and listed over 3.1 million items for sale; by 2004 there were an estimated 65 million registered users from 150 countries, 971 million items for sale, and gross merchandise sales hit $15billion. eBay owns local sites in 19 countries, has stakes in another eight foreign nations, and provides users with its own online pay service, PayPal Inc. As eBay's revenues continue to grow, the sky seems the limit despite competition from Yahoo!, Amazon.com, and an ever increasing number of imitators.…

    • 3450 Words
    • 14 Pages
    Good Essays
  • Better Essays

    "Big Data for Marketers: How Did Data Driven Retailers Bloster Loyalty Programs." Experian.com. Experian QAS, 2012. Web. 10 Sept. 2014.…

    • 1115 Words
    • 5 Pages
    Better Essays
  • Good Essays

    mozon and google

    • 1475 Words
    • 6 Pages

    252 Management Information Systems REAL WORLD ~ CASE Amazon, eBay, and Google: Unlocking and Sharing Business Databases The meeting had dragged on for more than an hour that rainy day in Seattle, and Jeff Bezos had heard enough. The CEO had rounded up 15 or so senior engineers and managers in one of Amazon's offices to tackle a question buzzing inside the company: Should Amazon bust open the doors of its most prized data warehouse, containing its myriad databases, and let an eager world of entrepreneurs scavenge through its data jewels? For several years, scores of outsiders had been knocking on Amazon's door to gain access to the underlying data that power the $7 billion retailer: product descriptions, prices, sales rankings, customer reviews, inventory figures, and countless other layers of content. In all, it was a data vault that Amazon had spent more than 10 years and a billion dollars to build, organize, and safeguard.…

    • 1475 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Boo Hoo

    • 2324 Words
    • 10 Pages

    The boo.com case remains a valuable case study for all types of businesses, since it doesn’t only illustrate the challenges of managing E-commerce for a clothes retailer, but rather highlights failings in E-commerce strategy and management that can be made in any type or organization.…

    • 2324 Words
    • 10 Pages
    Powerful Essays