In today’s fast-paced and digital-first business world, the retail industry relies on speed, accuracy, and efficiency across every branch of its business to ensure its survival. Although the digital transformation of the retail industry has been going on for years, it is only with the advent of Artificial Intelligence and Machine Learning (ML), that the retail industry has leveraged high-level data and information to improve its retail operations and empower its overall business. The benefits of Artificial Intelligence (AI) and Machine Learning (ML) in the retail industry span the entire product lifecycle and service cycle. It has the ability to improve a company’s bottom line. In fact, innovations in the retail industry powered by these technologies are being pioneered as potential retail-game-changers over the next decade. Take a look at how AI and ML in the retail industry are driving innovation and productivity.
Efficient Inventory management
Maintaining an accurate inventory has been a major challenge for retails since the beginning. Traditionally, retailers relied on trial and error to manage inventory which mostly resulted in piled-up stocks and product wastage. You can check the impact of cloud computing in the retail Industry Now, with the help of AI and ML in the retail industry, retailers streamline their inventory management. For instance, AI technologies make it possible to collect and process information from sensors, cameras, and other sources and can gain a comprehensive view of stores, shoppers, and products that helps with efficient inventory management. AI also enables accurate forecasts on product demand that helps them to plan purchases and stock movements to ensure maximum consumption while saving costs.
Predicting customer behavior
This is one of the important areas in which AI and ML can benefit the retail industry. AI and ML in the retail industry play a huge role in analyzing customer data and predicting future behavior. With this, retailers can better understand the needs of the customers and serve them better. Retailers can also employ AI and ML to analyze data accumulated through multiple applications and platforms, and spot trends in past purchases, online purchase behavior, favorite brands, preferred price range, etc. Check the impact of Artificial Intelligence in the Pharmaceutical industry: How is AI transforming the pharmaceutical industry? This way they can foresee what customers may shop for in the future and plan their campaigns accordingly. In addition to this, retailers can also use chatbots in their online store to assist with customer service.
Improving in-store customer experiences
AI also enables retailers to improve in-store experiences. As a customer, no one would like to wait in long queues for billing and is a mood spoiler. It is also a possible revenue spoiler for retailers as many shoppers who would not like to wait in long queues may elect not to purchase from you. But with the help of AI, you can predict and forecast expected customer rush at different hours of the day and can staff your store accordingly to add a smooth shopping experience. Also, advanced ML algorithms can recognize and interpret customers’ facial, biometric and audio cues to predict the products that customers like to purchase. This way retailers can promote that particular product more, thus ensuring improved in-store customer experiences.
Improved product pricing strategy
Pricing is one thing that retailers need to be extra careful with. Because consumers everywhere around the world are price sensitive and one wrong pricing decision could lead to potentially huge losses. Ensuring an item is priced accurately can make or break their business. So, it is important for retailers to get their pricing right while dealing with the growing competition. With the help of Advanced AI algorithms, retailers can easily calculate the best pricing for a product segment and foresee how its pricing impacts sales for that segment. Check Big data analytics in the Retail Industry; How is it transforming the industry? Moreover, ML now has the capability of offering dynamic pricing options. With this, the price of certain products changes over time through an algorithm that considers a variety of pricing variables. This helps retailers have more flexibility, thus improving their ROI.
Artificial Intelligence (AI) and Machine Learning (ML) in the retail industry have introduced an entirely new level of data processing that opens up huge business opportunities that were not possible earlier. Thus, with the help of AI and ML, the retail industry can pave the way for innovation and stay ahead of its competitors. At Intone, we understand the new retail is predicated on driving data and analytics, connecting customers to your brand, modernizing operations through technology and digitization, and effective supply chains to create a new and unique customer experience. The customers of today are intelligent and tech-savvy and hence innovation through technology to create connected customers is in our DNA. We work with some of the world’s largest retail clients in the world to develop and execute strategies that optimize the retail value chain at every level to create connected customer experiences for each and every client. We do this through real-time data analytics, digital CRM, IT integration, and modernization of the IT landscape. Let us help you transform your retail business.