After a stage dominated by branding and CSR , the current objective of retailers is focused on maximizing the ROI of people mobile canada actions to deliver the stock accumulated during the months of hiatus, as well as to communicate new launches to a consumer who has adopted new shopping habits. In the online field, now of strategic importance, data science applications in e-commerce stores in the retail sector already have a long history trying to improve the efficiency of online stores, automate processes and polish the user experience so that it is translate into maximum number of sales.Data science applications in retail
Although surveys such as the Big Data and AI Executive Survey 2019 conducted by NewVantage Partners reported that only 30% of companies in the United States were considered data-driven, the crisis unleashed by the SARS-CoV-2 pandemic has accelerated digital transformation . And it is that retailers that operate in online environments and already apply data science techniques have a competitive advantage in disruptive times. Here, we review three of the most prominent applications Price management with a data-driven approacManaging pricing policy backed by real insights rather than intuitions is an invaluable tool for driving sales at trough times and taking advantage of increases in demand during peaks of activity. This is possible as long as the retailer is able to unify its data under common characteristics and without excluding any sales channel .
With this initial classification, where the data is stored in data lakes, processed and used to feed machine learning models , one could:Customize the policy gulf email list of discounts or prices based on the user : the data analysis is responsible for detecting common patterns and identifying clusters of customers based on their previous online behavior and on the history of interests and purchases. In this way, it is possible to design a promotion strategy that is very adjusted to the types of users found and, therefore, with a higher conversion probability.Define prices by segments : in this case, the catalog of products and services and the price is set taking into account broader audience segments . For example, one option would be to have standardized prices for the bulk of users, but also to integrate another strategy with more aggressive discounts aimed at those customers whose purchase engine is pure price or, on the other hand, include premium offers with services or features special for those looking for extra security.
2. Personalized recommendations for ‘upselling’ and cross-selling in e-commerce
One of the great references in these data science techniques is Amazon and its advanced algorithm to show recommendations to marketplace users. In this sense, the most established machine learning models are designed to:Offer an improved version of the chosen product ( upselling ).
Recommend other products related to the purchased item , such as a fitness ball with its air pump.
Suggest items that similar users have purchased at the same time . This is something very common in fashion e-commerce, where it is about promoting the sale of complete outfits .
The advantage of using machine learning to manage these recommendations is that it gains in efficiency by not needing to run hundreds of A / B tests to make decisions: it is the algorithm itself that determines which products to teach each user in a personalized way . This is achieved by subjecting the model to prior training, that is, it is necessary to classify the data in advance and fix traits that relate the articles to each other. After commissioning, these algorithms fine-tune the selection of recommendations and constantly optimize it . They become very precise, since they are fed by an increasingly extensive data history that allows them to thoroughly analyze the reactions of users to suggestions.
Machine learning models are capable of relating articles from patterns
3. Advanced attribution models with machine learning
The complexity of user shopping itineraries in retail has grown due to the implementation of an omnichannel strategy in which the boundaries between online and offline actions are blurred ; the increase in the number of sales platforms ; and the appearance of new advertising environments such as TikTok . In marketing, the analysis of the buyer’s journey has always been the object of study, but until now it had not been possible to trace with such a high level of precision. And those responsible for this are advanced attribution models with machine learning .Attribution models that work with machine learning radiograph the behavior of the online user at all times . To do this, they integrate the data collected from external platforms (for example, those from advertising campaigns on different channels) and the information from the site itself . From this reality-adjusted scenario, it is possible to control the profitability of each channel, redistribute budgets or evaluate the effectiveness of the affiliate network. Another point in favor of this type of attribution model is its ability to detect fraudulent clicks Data science: a source of certainty for retailers
Making the right decisions has become crucial to the survival of many retailers, who are trying to navigate a consumer environment deeply marked by uncertainty . For this reason, those retailers that apply these data science techniques in their e-commerce stores will be one step ahead of their competitors by being able to enrich the online experience of their users and have all the information to react flexibly and quickly to changes. .