How to grow your e-commerce business with Data Science
During the last decade, Data has become one of the most precious resources that every business possesses, but when it comes to e-commerce businesses, data science makes the difference between failure and success. Because of the highly competitive market and the continuous rapid change of needs and trends in e-commerce, there is no space for errors in prediction and decision making.
There are various fields where Data Science can help businesses in e-commerce, some of which we will mention below.
Data collection in e-commerce
In general, it is difficult to track shopper’s buying journey in stores, since obviously, no one can read their customer’s mind. However, this changes with online shopping. Now more than 2,05 billion people purchase goods online which makes it easier to track the journey of customers before buying a product, which products they buy more often, and the ones that they have seen but have not purchased. Accordingly, companies collect information to give discounts to the right products, optimize the stocks to corresponds with the demand in different seasons and for the standard product line.
Personalize the shopping experience
In e-commerce, companies that are capable to offer personalized experiences to their customers are always one step ahead of their competitors. According to some research studies, 87% of the shoppers say that they are willing to buy more when online stores personalize their shopping experience.
The best successful example is Amazon. Their customers are frequently attracted by recommendation lists such as “customers who viewed this item also viewed” etc. As a result, the company boosts the sale of additional products and the revenue as well.
The benefits of Data Science
Furthermore, data science helps companies to improve buyers’ sentiment analysis. This is very important in order to figure out what customers like about a product and what they don’t like. The positive reviews are extremely important as they built trust about the product and the company, while in the case of negative reviews the impact is twofold. On the one hand, the negative reviews are good in order to understand what the customers don’t like about the product and what needs to be improved, and on the other hand, they can lead to trust loss about the product if not acted fast and in the right way.
Thereby successful companies give enormous attention to the collection of data and use data science to appropriately analyze them. However, since Data Science is very complex, in order to reach best results, it is essential for companies to ask for help from experienced Consulting Companies. Data itself has no value if it is not properly used.
Based on the arguments given above, one can conclude that the importance of data science for every company is enormous, but when it comes to e-commerce, it is vital. Thanks to the fast development of technology, innovation is done at a very high speed which leads to an extremely connected world.
As a result, companies need to react quickly and adjust their strategies in order to adapt to innovation, otherwise, failure is guaranteed.