The entire e-commerce industry is surviving on customer behavior, their life events, the encouragement that led to the purchase decision, and their interactions with different channels. The life cycle of a customer purchase is the most important for e-commerce companies to decide on their sales and marketing strategy. Data science is the best way to find what your customer wants.

It is a proven fact that although future purchase decision of a customer may be dominated by different circumstances and conditions, they typically follow a similar pattern. Data science helps in identifying these similar patterns.

What makes Data Science a must for e-commerce?

What makes Data Science a must for e-commerce?

The analytics market for retail is expected to grow by $5.1 billion to $8.64 billion globally by the end of 2022. The staggering figure could not have been possible without the exemplary contribution of Data science.

Here’s how it has hugely impacted the e-commerce industry.

Allowing an Information-Rich Retail

There’s a plethora of data lying and getting accumulated on an hourly basis. Data science has the power of harnessing hackneyed data into actionable information. It is not only data analysis but also the indulgence into an understanding of the business process, customer reactions, and needs that cumulatively drives the conclusion.

Creating strategic opportunity across the sector

Customer behavior has a massive impact on the e-commerce sector. From warehouse automation to after sales service, customer interaction to conversational trade; data analytics aid in futuristic decision making across the sector. For example, mapping customer interactions for both online and offline sales through effective data science solutions can result in profit up-scaling across both online and offline retail channels.

Establishing higher Customer Lifetime Value and Returns

Data science for business directly implies more customer retention and reselling. With data analytics, you can identify your repeat customer behavior and retain existing customers thereby increasing their lifetime value considerably. According to research, the top performing businesses have 5 times higher customer lifetime value than others. They were found to generate more than half of their revenue from repeat purchases just after one year of operation.

Secure, reliable information even at the micro-level of operation

Earlier retail businesses used to employ consultants to judge which product is preferred by customers. Thanks to data science and analytics, even specific product recommendations can be determined based on reliable information. It not only considerably reduces the procurement and inventory cost but also allows the business to empower towards a set direction.

The Takeaway

Data science is not doubting the dominating future of the e-commerce sector. Many forward-thinking companies are already adapting to data science and exploring its benefits. In the long run, it is undoubtedly going to offer them the edge to reach the top of their game.