r/statistics • u/Excellent_Copy4646 • 10h ago
Question How useful is observational causal inference / uplift modeling in the tech industry right now? [Q]
I have been working on causal inference and experimentation frameworks within the e-commerce tech industry lately, specifically dealing with platform behavioral and transaction telemetry data to determine how customers behaves on those e-commerce platforms.
Lately i have been facing problems where standard textbook statistical theory fails when dealing with messy, real-world data distributions as human behaviour is unpredictable and many unexpected things, which i didnt even thought could happen, can happen in the real world. Such as product delivery delay, causing the customers to be angry and hence put them off from buying the product, each of these variables have to be accounted for.
To model and have these unexpected psychological state among customers accounted for, we use variables such as sudden spikes in customer support chat volume, rapid page refreshes, or immediate session drops.
Also, Marketing headers and automated CRM systems love to push blanket promotional campaigns, but as statisticians, we know that measuring simple unadjusted A/B lift is a massive selection-bias trap.
I been trying to come up with a Statistical model that is trying to model complex human behavior—specifically isolating true customer revenue incrementality from dead-weight margin cannibalization. Essentially, trying to answer: Did the coupon cause the revenue spark, or did we just hand a discount to a power-buyer who was already determined to buy anyway even without the vouchers?
Are people in the tech industry genuinely valuing such skills nowadays? Using statistics to model and predict human behaviour and intent, answering questions like does our vouchers and ads really work?
I would love to hear your experiences how do u guys deals with the unpredictable messiness of human intent.