What is Data Science and how to use it in your online business

POR Hispanic Entrepreneurs December 09, 2021
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Surely you have wondered many times what it is Data Science and how to use it in your online business. Data science can be critical to your venture. So in Hispanic Entrepreneurs We will try to clear up any doubts you may have regarding this issue.

There are several types of data that can be studied with tools such as Google Analytics or Amplitude. This information can help you make good decisions in your business. But what is it about and what advantages will it have for the company? Keep reading to find out.

What is Data Science and how to use it in your online business

This is a field that is responsible for studying where the information comes from. In addition to determining what it represents and how it can be used to create business and strategies.

To achieve this, large amounts of data must be extracted using disciplines such as mathematics, statistics, and computer science. They even added to these techniques such as machine learning, group analysis and visualization.

All in order to identify patterns that help organizations control cost and increase efficiency. But also to identify market opportunities and increase competitive advantage.

That is to say, Data Science is applied to extract information and segment customers with the intention of influencing their purchase decision. Also to analyze the viability and profitability of products, anticipate the loss of customers and expand their knowledge. Likewise, to generate alerts according to the level of use or capacity and the focus of marketing or promotion campaigns. Aligned to detect possible risks.

To work with this information we must know what types of data exist. There is the intelligent data (Smart Data) that involves the data of the business. It covers from billing, purchases, sales and customer information (address, identification, etc).

Open data refers to those that are accessible to everyone. While, the identity data (Identity Data) gives signals about preferences, habits, purchase history and interaction.

For example, in social networks, the interaction data would be if the customer entered the online store due to an advertisement on Facebook. It will serve to know their behavior and expectations and then attract them to ecommerce and retain them.

The available data and its analysis allows your online business improve your focus. Likewise, you will be able to track and understand the information that comes from different sources such as the results of Ads campaigns. As well as email marketing and stock control forms. With the latter, you can know what users buy and have the product available at all times. Then you can highlight them in a banner on the main page and complement it with online advertising.

Other applications of Data Science to your online business

Instinct doesn't always work with companies. That is why Data Science will guide you to make decisions based on accurate data that will reduce the margins of error. In its use, Netflix and Spotify are pioneers.

With this branch you will be able to know who your clients are. Since with the segmentation you will group them according to their tastes and commercial behaviors. In this way you will create and send messages that can meet their needs.

You will determine if potential customers visit a product, but do not buy it. Then you will know that it is necessary to put it on promotion and remove it from stock or add those that you thought would not generate interest.

It gives you the ability to stay one step ahead of customers and customize the offer to increase conversion. It is done by offering them messages adapted to their characteristics. A wise action is to recommend products similar to those they have visited or that complement their purchase. A success story in your application is Amazon. It is estimated that 35% of your sales are thanks to your recommendation system.

Improve customer service by identifying a problem to give immediate solution. At the same time, it gives you the opportunity to detect if the same client made the query through several channels. In this way you can give a quick response, generating security and trust in your store.

What is the competition doing?

Another way to use Data Science in ecommerce is to find out what the competition is doing. You can do it through Netrivals and Minorest that analyze prices and products in a specific sector in real time. This way you will know which products to offer with the best price and quality.

It helps to identify and refine the target audience, apart from knowing where they are. Addresses to which deliveries are made can be collected. If the majority are from the same city or sector, it would be correct to carry out an advertising campaign there. Or, failing that, offer what you like the most if you have a physical store.

With the data, ecommerce can predict demand and optimize inventory levels. Costs are reduced and more efficient purchases are made. Remember that good planning translates into benefits for your business.

All of this will lead to increased profitability, improved operational efficiency, business performance, and workflow. Another important aspect is that it enables the detection of fraud and suspicious behavior. They can be ordered to the same address with different cards or many orders for a single product.