How often do you order various things via the Internet? Have you noticed that services usually know what exactly you are looking for? This is one of the examples on how businesses use data science nowadays.
For instance, Amazon uses predictive analysis algorithms. They let the service provide clients with personalized recommendations based on past visits and trends.
Facebook uses deep learning tools that help the platform suggest its user’s possible friends and pages that may interest them. Spotify offers recommendations on music while Netflix help finds movies that users may like.
There are way more examples of how data science helps businesses grow and increases sales. Let’s take a closer look at how it can solve real business problems nowadays and what data science solutions are available on the market.
Table of Contents
What Is Data Science And Why Is It So Popular
Data science is a field of study that combines math, statistics, scientific method, AI, advanced analytics, and specialized programming. It helps with collecting, analyzing, and interpreting huge volumes of data.
It’s gaining more and more popularity nowadays as it brings lots of benefits to various types of businesses:
- helps optimize sales with the use of targeted ads
- increases users’ engagement by offering relevant recommendations
- reduces frauds and assessing risks
- makes supply chain management easier
- helps optimize your product
Why You Should Use Data Science For Solving Business Problems
As you can see, there are plenty of advantages for companies that know how to use data science. It helps them gather relevant data and predict possible problems they may face. Consequently, it leads to smarter decisions that help save money and time. Moreover, it helps promote products wisely and increase sales. Just take a look at some examples of how DS is used in various spheres:
- Banks use DS to monitor financial market activity and for risk analytics
- The education sector uses DS to measure teachers’ effectiveness and analyze students’ performance
- Entertainment platforms use it to provide clients with the most relevant recommendations based on their preferences
- Healthcare can use it for identifying patients for clinical trials
- The travel industry uses it for forecasting the behaviour of travellers and predicting their next destinations
- Energy uses DS for optimizing investments and improving equipment maintenance
How To Solve Business Problems With Data Science
It’s obvious that data science helps solve a wide range of real business problems. But if you don’t have any technical background, it may be difficult to understand how the whole process is organized. Hence, here’s a general framework that will help you get a better understanding of how it works. It consists of 5 steps and is used in order to approach a business problem:
Select And Define The Problem
The problem should be clear and precise so that it will be possible to set the objectives. For example, it’s not enough to state that you want to increase sales or improve your business. Instead, it’s vital to investigate all the aspects of an issue. Do you want to attract more new clients or wonder why your old customers stopped buying your products?
When the problem is clarified, it’s time to set objectives.
Pick The Objectives
Properly set analytical objectives will bring you one step closer to the solution you are searching for. Let’s say you want to promote new products so that your loyal users buy it. In this case, you can use various tools (emails/messages, etc) that will promote these products and inform them about their benefits.
The next step is to collect relevant data, explore it, clean and choose one possible solution for the problem. Ensure that you have all the needed data before moving to the next step.
The model is picked depending on the type of data. Pick the most suitable one and test it at the final step.
Testing Of Performance
Check your results before the actual implementation of the final model. For instance, you’ve found out that the majority of users visit your website from Google on weekends. Then, use Google paid search to see if this information is true. You can also compare the results on weekdays and weekends to see what’s the best time to start your actual marketing campaign.
Overall, data science helps businesses grow, increase sales and provide their clients with a better user experience. There are lots of ways on how to apply it for solving diverse business problems. Therefore, it’s essential to learn more about multiple tools that help master Data Science for business.
Indeed, you may try to explore machine learning, AI, predictive analysis on your own. But gaining the required skills will take too much time and effort. Instead, you can select reliable companies that provide data science services at affordable prices. They will help you find the best solutions for your case and a dedicated team of professionals will boost your business growth.