Why Data Science is valuable for eCommerce
The nature of eCommerce involves many touchpoints, from searching for a particular product, to clicking through various products, recently viewed products, to past order history, or submitting a product review. The clicks and touchpoints can be captured to further analyze the shopping behavior of every customer. Going through a big volume of data, to make predictions, assists eCommerce storefront merchants in increasing the online site visits along with its revenue.
With proper systems in place to act on these insights, data-savvy eCommerce business is sure to observe a positive impact on their bottom line. Below, we’ll explore four ways that online retailers can leverage data science to achieve business value.
Identify Customer Persona
Getting an insight into a customer’s shopping behavior and their persona can be used to retain the customer and predict the future revenue from each customer. Each customer is valuable to the business, how often they purchase and their average value of purchase assists in determining the lifetime value of a customer. Additionally, a variety of attributes, associated with shopping behavior, can highlight how the customers can be nurtured, prompting them to place orders. Customer’s last purchase, the total number of purchases and the total money spent help classify each of them, providing channels for retailers to interact with these customers on a one-on-one basis offering them discounts or coupons increasing the retention and conversion rates.
Deploying a Recommender System
Data science algorithms have risen to new levels wherein a retailer spends billions of dollars per year to recommend products based on their browsing and past order history. Recommender systems based on data science algorithms can recommend products based on customer profiles, ratings, reviews, faceted-search, basic search results and associated products. Results have shown eCommerce revenue has gone up exponentially when an intelligent recommender system is deployed to sift through a plethora of data.
Maximizing customer satisfaction
Product reviews provide useful information to eCommerce merchants to increase customer satisfaction by being able to update their products or launch new products for a good positive impact when the customer revisits the store. Data science can provide quantitative value to eCommerce, as long as there is a team that can measure the success of the return of investment.
eComchain provides all of the above features with its inbuilt intelligent recommender system. Reach out to any of our Data Science engineers for a quick demo of this scalable robust eCommerce platform.