Data Overload in Retail
The volume of data is growing exponentially in the retail space. The volume and velocity with which the data grows is astounding. McKinsey had suggested in a 2011 report that retailers who got on-board big data were likely to see an increase of nearly 60 percent in their operating margins. The ultimate goal though is for using all the data and creating a streamlined experience for the customer that is seamless irrespective of the channel format he is using to access the products and services. There are mountains of data to sift through in the retail industry. How they use the data will determine their strategy for dealing with customers and competitors. The variety of products change every year and the value of the product groups also goes up if we are able to present them in a way that customers buy more. Today retail produces some of most interesting case studies that involve machine learning, predictive analysis and big data. Retailers who are able to action their data have a chance to reduce costs and increase sales.
The AI & Data Driven Retail Evolution
Today data scientists in retail are working to organize information about shoppers to identify individual purchasing preferences and make extrapolations to determine customer buying patterns. AI brings in another layer of interaction with customers that can be used to elevate the customers experience with the retailer. From customer experience to merchandising and from marketing to supply chain, AI integrated data science can bring some dramatic changes to retail. Predictive analytics for the enhancement of the customer experience with personalized recommendations and multi-level reward programs based on purchase preferences, online data, smartphone apps, etc. Even while the customers are shopping in a store data science can help in identification of shopping trends and cross-selling opportunities through video data analysis.
From the moment the product starts its journey from the manufacturer leaves the manufacturer, to its journey to the warehouse or store floor, to its purchase and appreciation, the retailer is looking for maximum efficiency in every department. The Data Team can help retail firms adopt data to accelerate their growth, enhancing customer experiences, improving profitability and achieving operational efficiencies.