In the digital world that we live in, there is more data than ever.  That means more information about everything that surrounds us. Now, this information can be used to do some pretty amazing things, and the present e-commerce Industry is a shining example of that.

About Data Science

Data Science refers to the interdisciplinary study of the scientific methods and processes used to manage the source of data, understand its representation and convert it into useful information.

Every organization generates a lot of data from the consumers through the services that they use. Data scientists can help those organisations use that data to serve those consumers even better.

e-commerce Supercharged

In the business world, it is a self-evident fact that for any business to serve its customers well, it has to know those customers and their preferences and then craft their business plan accordingly.

Traditionally, this was done by the store operators and other executives who directly interacted with the customers. They had a pulse of the market and the direction in which the wind was blowing. But this method was inefficient and barely useful in the long run, and not to mention unusable in the e-commerce industry. This is where Data Science comes in.

1. Knowing Customers

The biggest aid Data and Data Scientists provide to e-commerce businesses is in knowing the customers. Companies gain this knowledge through the online behaviour of the consumers: their interests, the product they often view, their possible needs, etc.

This helps the companies to know the consumers as well as they see themselves and simplifies the purchasing process.

2. Selling Better

Data scientists have revealed that consumers’ buying pattern and brand loyalty is ever-changing and not as predictable as previously thought. This has made gaining consumer insight even more crucial for any e-commerce business.

Data sciences have provided the answers to various questions that have enabled the companies to sell better, such as:

• What demographic of people are buying your products?

• Which products interest your consumers?

• How can you contribute to the shopping experience of your consumers?

• What encourages the consumers to buy the products that they do?

3. Marketing Done Right

Data Sciences has revolutionized marketing as a whole. With information collected from users about their spending habits, browsing and shopping patterns, more personalized marketing campaigns can be implemented.

These things have helped the businesses with advertisement retargeting, channel mix optimization and have increased the overall attentive time spend by the consumers on the company’s adverts.

This means more specific commercials for the end users and more effective marketing campaigns for the businesses.

On the Flip Side

Whenever the topic of collecting information from the public comes up, questions of security and privacy emerge. This is only natural as cyber security is a pivotal part of the digital lives that we lead.

Companies ensure users’ privacy through ever-updating encrypting technologies and firewalls. And to further enforce security, it is made sure that the sensitive data of users are stored locally on their devices and not on the cloud.

To say that the world of e-commerce has changed forever by Data Sciences would not be an understatement. And with more data scientist working together to further enhance our shopping experience, the future is only looking brighter.

LSI Keywords

Data science in e-commerce

Applications of data science

Online retail and data science

Data science and marketing

In the digital world that we live in, there is more data than ever.  That means more information about everything that surrounds us. Now, this information can be used to do some pretty amazing things, and the present e-commerce Industry is a shining example of that.

About Data Science

Data Science refers to the interdisciplinary study of the scientific methods and processes used to manage the source of data, understand its representation and convert it into useful information.

Every organization generates a lot of data from the consumers through the services that they use. Data scientists can help those organisations use that data to serve those consumers even better.

e-commerce Supercharged

In the business world, it is a self-evident fact that for any business to serve its customers well, it has to know those customers and their preferences and then craft their business plan accordingly.

Traditionally, this was done by the store operators and other executives who directly interacted with the customers. They had a pulse of the market and the direction in which the wind was blowing. But this method was inefficient and barely useful in the long run, and not to mention unusable in the e-commerce industry. This is where Data Science comes in.

1. Knowing Customers

The biggest aid Data and Data Scientists provide to e-commerce businesses is in knowing the customers. Companies gain this knowledge through the online behaviour of the consumers: their interests, the product they often view, their possible needs, etc.

This helps the companies to know the consumers as well as they see themselves and simplifies the purchasing process.

2. Selling Better

Data scientists have revealed that consumers’ buying pattern and brand loyalty is ever-changing and not as predictable as previously thought. This has made gaining consumer insight even more crucial for any e-commerce business.

Data sciences have provided the answers to various questions that have enabled the companies to sell better, such as:

• What demographic of people are buying your products?

• Which products interest your consumers?

• How can you contribute to the shopping experience of your consumers?

• What encourages the consumers to buy the products that they do?

3. Marketing Done Right

Data Sciences has revolutionized marketing as a whole. With information collected from users about their spending habits, browsing and shopping patterns, more personalized marketing campaigns can be implemented.

These things have helped the businesses with advertisement retargeting, channel mix optimization and have increased the overall attentive time spend by the consumers on the company’s adverts.

This means more specific commercials for the end users and more effective marketing campaigns for the businesses.

On the Flip Side

Whenever the topic of collecting information from the public comes up, questions of security and privacy emerge. This is only natural as cyber security is a pivotal part of the digital lives that we lead.

Companies ensure users’ privacy through ever-updating encrypting technologies and firewalls. And to further enforce security, it is made sure that the sensitive data of users are stored locally on their devices and not on the cloud.

To say that the world of e-commerce has changed forever by Data Sciences would not be an understatement. And with more data scientist working together to further enhance our shopping experience, the future is only looking brighter.

LSI Keywords

Data science in e-commerce

Applications of data science

Online retail and data science

Data science and marketing

Data science as the name suggests is data driven by science. It is a method to extract relevant data or insight from the data in various forms which can either be structured or unstructured. It is kind of similar to data mining.

If we talk about business terms, it helps businesses provide a richer understanding of the clienteles’ by capturing and integrating the information of the prospect’s online behaviour. At this period, e-commerce is the essence of almost every business. The world at this time is immersed in data from many sources. Data science and ‘data scientists’ have revolutionized modern business. With the boom of e-commerce, the aspect of Analysis (“A” from the DMAIC theory) has broadened by leaps and bounds. Before, we talking about the benefits, let’s talk about how it is used in e-commerce.

In the field of e-commerce, customer and sales data are integrated into a database which is further linked with the email marketing and ad platform data. A thorough analysis of these gives a data scientist a 3D view of (i) Customer lifetime value, (ii) Personality analysis, (iii) Churn detection, (iv) Customer segmentation, (v) Cohort analysis, and (vi) Trend analysis. This helps the business to work and forecast new and beneficial acquisition and retention strategies. This is exactly the evolution it has brought to the modern business.

Let me explain it this way – assume you’re on a shopping app/website browsing. You scroll downwards and see that the app/website has recommendations based on your browsing/shopping history. Did you ever ponder as to how the app/website know your preferences and suggests products that you might end up buying? That, my friend, is data science. This method can be classified under Acquisition strategy. You might initially have logged in to the website just to browse, but recommendations have a probable chance of triggering a sale. Another example of it is boosting cross-selling (selling a different product to an existing consumer). Once you select a product, most websites/apps recommend a bundle option of similar or related products. Statistics say that cross-selling is a major part of today’s e-commerce business. As a matter of fact, websites/apps these days also recommend items based on perceived customer journeys. This is also a part of the acquisition. The technique just tells you what other customers have loved so far and thus intrigues a prospect increasing the chances of a successful sale. Retention strategy is when businesses use offers, promo codes, discounts, etc. to a prospect and flash sales to retain market. Big brands use data science and scientists to monitor stock and manage promotions accordingly.

Apart from the above, data science can help a new online business to determine strength and impact of the online vs. physical brand. It can help provide detailed analysis to a retailer on physical shops vs. online sales. Also, the inclusion of data science in online business will help sellers offer personalised deals per customer based on individual browsing habits and patterns. It helps a company to anticipate customer behaviour and understand connections of customer’s product reviews and shopping behaviour with other customers further leading to successful Prediction model (surfing behaviour vs. {ed162fdde9fdc472551df9f31f04601345edf7e4eff6ea93114402690d8fa616} deal-making).

Thus, data science helps to gain sales/conversion providing optimized information about customers. Numbers speak, isn’t it?

Keywords:

Data science

Data mining

Online sales

e-commerce