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.
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.
- 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.
- 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?
- 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.
Data science in e-commerce
Applications of data science
Online retail and data science
Data science and marketing