fbpx

How Data Science is important in Commerce and Management Studies

Data Science for Commerce And Management

As the marketing landscape becomes more complicated, data science must be included into the plan because it may help understand customers and how they engage with brands. You may achieve your marketing and commercial goals and reach your target market by making more informed decisions. The return on investment for companies utilising data-driven, or personalised, marketing is five times higher. For this reason, businesses are turning to data science. It becomes essential for BBA/BCOM students to acquire this expertise in order to improve their future. Let’s examine the application of data science in the field of commerce and marketing:

Defining marketing analysis

Using data and business intelligence to guide marketing decisions is known as incorporating analytics. This could entail tracking marketing initiatives and results as well as learning more about the behaviour of customers. Gaining more insight into how consumers engage with the brand is the aim.

How incorporating data science into your marketing plan works:

Data science can be applied in a variety of ways to optimise a marketing strategy. We can get started by using these pointers.

a) Personalize the customer experience.

Consumers’ behaviours provide data. We can customise their touchpoints by using this data, which includes things like their browsing habits, past purchases, and abandoned carts. Create and send these consumers personalised communications using the data. Business intelligence and data science will assist in tailoring marketing messaging to appeal to target audiences.
Let’s take an example where your marketing strategy calls for using retargeting advertisements on the Google ad network or Facebook. Using big data and analytics (a subset of data science), you may determine which customers are most likely to respond to these adverts and then target them with messages to encourage a conversion.

b) Inform about the SEO strategy.

You can use data analytics to learn which terms bring in the most traffic. To appear higher on search engine results pages, we may incorporate these keywords into the content of our blogs and websites.
Analytics can also be used to monitor the click-through rate of a website. This indicator can help you determine how well the website performs in search engine optimisation. A poor click-through rate indicates that the website needs to be better search engine optimised.
We can also ascertain which websites are generating the most referral traffic with the aid of the data. After that, we can concentrate on establishing connections with these outlets to broaden the reach of your company.

c) Build buyer personas.

Building buyer personas based on the actions of your target market is one of the finest methods to apply data science. You should be able to discern from our data what they need and want, as well as how to build buyer personas that direct our marketing strategies.
Marketing campaigns can be substantially enhanced by developing buyer personas through the use of data science and business intelligence. Research shows that personas can increase CTR rates by 14% and email open rates by two to five times.
By employing realistic buyer personas to inform your marketing strategy, you can meet the needs and goals of your target audience.

Data science in risk management a) Credit risk modeling

Banks usually use traditional credit risk models to predict categorical, continuous, or binary output variables (default/non default). Data science can be used to improve the variable selection procedure and optimise parameters in current regulatory models.
Data science approaches can produce clear-cut and reasonable judgement criteria even though they have non-linear features. Unsupervised learning techniques can be used to investigate data for traditional credit risk modelling, while classification algorithms such as support vector machines can forecast critical credit risk features like PD or LGD for loans.
Additionally, financial services companies are employing more and more outside consultants that create their revenue forecasting models under stress using data science techniques.

b) Fraud detection

Banks have been using machine learning techniques for credit card portfolios for years since credit card transactions provide them with a wealth of data that they can use to process and train unsupervised learning algorithms. The historical accuracy of these algorithms in predicting credit card fraud has been attributed to the availability of models for creating, training, and evaluating large volumes of data.
Operational tools in credit card payment systems track card transactions and determine whether fraud is likely. The extensive transaction history pertaining to credit card portfolios enables banks to differentiate between particular attributes of fraudulent and non-fraudulent transactions.

c) Conduct of the merchant

Tracking trader activity for fraudulent trading, insider trading, and market manipulation is becoming more and more common with the introduction of technologies like text mining and natural language processing. Financial firms can avoid millions of dollars in market and reputational risk by using the technologies to anticipate the probability of trader error based on trading portfolio data, login/logout times, phone times, and email traffic and calendar data analysis.

Churn Modelling

The tendency of a consumer to discontinue using a service they had been using and cancel their membership is known as customer churn. The bounce rate refers to the proportion of website visitors who left within a short amount of time. This is opposite to the customer growth rate, which measures the addition of new customers. For all subscription-based services, maintaining customers is an essential component of the business plan. Customer behaviour data (purchase intervals, length of time as a client, cancellations, follow-up calls and messages, online activity) must be gathered and analysed in order to identify the characteristics of at-risk clients and determine the best course of action. Only then can customer churn rates be predicted and appropriate preventive measures implemented.Data science can assist in forecasting a customer’s likelihood of quitting an insurance policy, the bank, etc. By utilising machine learning, we are able to forecast the client’s banking habits based on their past information, including credit history, projected income, and personal characteristics. Interested in purchasing goods online, etc. Finally, we might examine how Data Science can automate a great deal of significant work in the fields of finance, commerce, banking, and insurance. Thus, mastering this talent is crucial if you want to advance in the field or land your ideal job.The best place to learn data science for the commerce and management sectors is Theta Academy.

Why to choose Theta Academy for online learning?

  • Provide data science and artificial intelligence training with varying curricula and formats for each discipline or field of study.
  • Experts from Mercedes, Biocon, Microsoft, and Muthaot Finance will be giving guest lectures.
  • Technical evaluation, competitive interview, and Platform (worth Rs. 7000/-) will be supplied.
  • Free Education from the Best Publisher in the World: Oreily Free Pro 
  • Subscriptions for Analytics Software Like Power BI
  • A weekend workshop to help clarify doubts
  • Clarity on doubt in fifteen minutes (24/7), using a Telegram account
  • Government-approved qualifications
  • Smart panel screen classes offered online.
  • Placement Support is offered.
  • No prior coding or mathematical skills is required.

Keep Learning!