Each time you click your mouse to purchase something, the data (information trail) is captured and stored, to be used by retailers in the future to communicate with and attract you to purchase more.
As the world gets immersed in data from a variety of sources, whether that is from the millions of tweets, likes, and photos on social media, or the searches on Google, all these help businesses know what customers want, and when they want it.
Data science finds its purpose in business as it is used to collect, store, sort, and analyze data for drawing productive and meaningful insights.
This comparatively new job in this field is carried out and fulfilled by experts called data scientists.
Data scientists help businesses identify similar patterns from technological advancements in cloud computing, data storage, and data science, which today can be used to predict any and everything.
For Ecommerce businesses, data scientists are able to identify different shifts as they write algorithms and continuously monitor the company’s sales cycles, while cross referencing these with external sources.
Discussions around such trends can help find correlations with purchase intent, plus retailers get to explore new ways to understand how to retain customers, besides acquiring new ones.
Data scientists & AI experts make an enormous contribution to ecommerce, where intuition, common sense, and gut feelings cannot.
Through their algorithms, they help ecommerce business people understand their services, products, customers, and processes effectively.
Here are the ways in which data science professionals can contribute to ecommerce.
1. Provide a richer understanding of customers
Data scientists capture and integrate the information on customers’ web behaviors, the events happening in their lives, what made them buy a service or product, how they interact with channels, and much more.
Data trends in the eCommerce industry show the rising boom and data science thus holds the promise of enhancing the customers’ shopping behavior, which can offer eCommerce businesses enhanced profitability from an improved marketing mix.
2. Identifying patterns and trends
Data science professionals use information and look at data sets, while identifying trends and patterns that can be interpreted to reach particular conclusions until you see the overall picture.
Their eyes are better trained to do this, with techniques to carry out the same using big data.
3. Cleansing and organizing data
Big data comes with large amounts of information collected from different sources, so it is usually mismatched and messy in its format.
Data science professionals clean and organize data before identifying trends, and at this point, they start to build models with the information they glean.
4. Data modeling
This is a sort of abstract term that explains how data science professionals build mathematical representations based on the belief about how things work.
It isn’t pure math, but the formulas and logic used in the representation.
They use statements such as if-then, based on patterns they recognize in data. However, variables can change, so the data scientists monitor and adjust models when required.
Data scientists have been defined as ‘part artist, part analyst’ because as analysts, they look at data both from current and past time to understand its interpretation and movement.
However, they go further and build on these interpretations for forecasting of the future, while taking identifiable patterns from different data and translate the knowledge to terms that can be understood.
As artists, data science professionals also reveal shapes in the images, while helping ecommerce business owners grasp the meaning of the shapes now and in the future.
6. Help ecommerce business improve customer service
Data scientists can discover statistics on unhappy customers and help ecommerce businesses improve customer service.
Focusing on improved customer service is critical to the ecommerce business’ success.
It is important to understand your shoppers, while making it easy for them to contact you, find answers to their queries, and get their issues resolved.
These data science professionals thus offer the metrics needed through big data to track customer service experiences, see how fast customer service is completed, and identify and resolve problems before customers are involved.
7. Continued advances in virtual reality and mobile commerce
Through synthesizing and analysis of data by data science professionals, ecommerce businesses are able to make mobility possible, while evolving the shopping experiences for their customers.
The number of people using Smart phones is continually increasing and big data makes mobility possible in ecommerce. In fact, some of the biggest ecommerce players generate more from their mobile apps than website.
Today, brands can get data from various sources and the data scientists help analyze customers through mobile technology.
Together with virtual reality, big data is able to enhance the effectiveness of ecommerce businesses, such that they can now get tools to present their brands efficiently, advertise, and offer customers an evolving shopping experience.
With virtual reality, big data can be analyzed and actions changed based on findings, such that commerce businesses can offer streamlined shopping experiences to customers.
8. Enhances security of online transactions
Data science professionals have a significant role in making online payments easy and more secure on ecommerce platforms.
With big data, these professionals are able to analyze the information so that ecommerce businesses can offer different payment functions in a centralized platform, reducing risks of fraud.
They also enable businesses discover fraud in real time while offering proactive risk-identification solutions. Ecommerce businesses have to be very careful about customers’ data protection too. Failing on which can cost them millions in business and penalties.
9. More customer retention and reselling
Data science helps identify repeated customer behavior while retaining and existing current customers.
This helps increase the customer lifetime value considerably.
Research has shown that to performing businesses have customer lifetime values that are five times higher than others, and generate over half of their revenues from repeated purchases after just one year of business.
Data sciences professionals help analyze the big data to identify the information needed to enhance the customer lifetime value of ecommerce businesses.
Without a doubt, the ecommerce sector has a dominating future, and many forward-thinking companies are adapting to and exploring the benefits of data science.
Data science professionals, in the long run, will undoubtedly offer ecommerce an edge to reach the top of their game.
Roberto Garvin –
I am Roberto, co-founder of Mofluid/Snewscms. “It is absolutely amazing to see how technology continues to evolve, from email to browsers, search engines, mobile, AI and now blockchain.” I am fortunate to witness it all. Really excited to see what’s next.
Twitter – @mofluid
Facebook – @mofluid