The use of data science has a positive impact on all industries, especially banking, marketing, and e-commerce.
The ever-evolving power of data science is truly intriguing, and today this is one of the most important branches of the IT industry. This is the reason why according to experts, e-commerce providers will invest up to $6.2 billion by 2025 in data science.
That is a huge increase if we know that it was invested $2.5 billion in 2018.
We already know that collected data can be set to reveal important market trends, customer preferences, and patterns that humans can’t see easily. But how can we improve e-commerce businesses by applying data science, and how can we choose the best e-commerce platforms for it?
Let’s find out.
Personalization and Forecasting
Popular websites such as Amazon, Spotify, or Netflix are already excellent in creating personalized recommendations. People all around the world are amazed at how easily these websites can offer what they would like to choose next. When the users are feeling like the whole experience is personalized, they tend to spend more money and time on those platforms.
Data science is transforming the whole e-commerce industry while it is allowing the user to feel the power of personalized content.
How does that work?
While you are browsing the website, recommendation engines are using their complex machine learning components to track every customer’s behavior online. After collecting, these machines are analyzing them and filtering the data so it can be used in predicting what would be interesting to their users in the future. So, with the help of personalization and forecasting that data science is enabling these websites are thriving.
Creating Optimal Prices
Have you ever noticed that prices on the same website vary depending on the moment of visiting the website, or the country from which you are searching for that product? Or maybe you have seen a discount for a flight or accommodation, right after you googled it?
The main reason for this is the fact that the website that you are exploring is using your data to give you an adequate price if you are interested in the product or service.
With the help of machine learning and data science selling a product at the ideal price is not a dream anymore. When creating the price, business people should bear in mind not only the true cost of the product but also the prices of their competitors, location, and financial ability of their customers.
E-commerce can grow immensely when data science is involved to give them the opportunity to market their products in the right way depending on the data from their customers and competitors.
Customer Experience and NLP
Customers are “lured” to websites with excellent content marketing, targeted ads, and products that are interesting, but the customer experience is what keeps bringing them back. Today, with the help of Data Science techniques such as natural language processing (NLP) ratings and reviews can be analyzed and processed better.
With this information filtered and analyzed every e-commerce company can improve customer satisfaction by giving the priority to the products that are most loved by their users.
Fraud Detection and Data Science
In a world where millions of products are being sold within every second, the possibility of fraud is high. In order to minimize the possibility of fraud e-commerce companies should use Data Science techniques and list all possible fraud that might occur. When they are detected, it can help companies with decreasing unidentified transactions which create a safer space for users as well as for business owners.
Competence in detecting frauds can later result in creating loyal customers, and it can attract numerous new customers.
Now that you know some of the possibilities that can make your e-commerce even more successful, you can explore this topic further. We understand that picking the right e-commerce solution is time-consuming, but that is one of the most important things that you have to consider when developing an online business. With the constant exploration of the latest trends, and implementation of those that are proven to be effective you can be on top of your game.