Nostico | July 3rd, 2024
Retailers can stay ahead in today’s changing market by adopting digital transformation and leveraging advanced business intelligence (BI) capabilities powered by artificial intelligence (AI). This technology allows them to identify market trends, detect patterns, and understand shifts in consumer behavior, facilitating informed decision-making based on valuable data.
Although AI used to be a tool exclusive to large companies like Amazon and Walmart, it is now within reach of retailers of all sizes. With technologies that include machine learning (ML), natural language processing, and predictive analytics, AI enables the analysis of large volumes of data, forecasting trends, and predicting demand, thus optimizing data-driven decision-making. The National Retail Federation considers AI as a disruptive change in the future of online and in-store shopping, with applications such as real-time personalization and improved customer experiences.
Here are five ways in which business intelligence can revolutionize your retail business:
Obtain Essential Information
Instead of manually entering data into spreadsheets and reviewing multiple tables and charts, modern retailers must manage and organize large volumes of data, from customer details to inventory levels. BI tools facilitate this process by presenting accurate data in intuitive, real-time dashboards, allowing for quick adjustments in prices, stock, and promotions.
For example, Kmart Australia uses advanced AI capabilities along with Microsoft Power BI to better understand their customers and optimize their supply chain, handling more than 60 TB of data and 30,000 queries daily.
Identify Hidden Trends
Through natural language processing and machine learning, AI can analyze large volumes of unstructured data, such as social media, to uncover emerging trends before consumers are even aware of them. This allows for predicting demand for new products and adjusting shopping experiences and customer interactions.
Simplify and Automate Tasks
Creating SEO-optimized product labels and descriptions can be automated with AI, using computer vision algorithms to identify and tag key product attributes, saving time and reducing human error.
Help Customers Find What They Want
To reduce returns, retailers can improve online sizing guides and use technologies like augmented reality to help customers visualize products on virtual models like themselves. Additionally, AI personalizes product searches according to individual customer preferences, enhancing the shopping experience.
Boost Sales
AI-powered cart recovery tools can reduce cart abandonment rates by analyzing purchase history and browsing habits to offer real-time incentives, such as discount codes or personalized recommendations.
With the constant increase in collected data, BI tools become essential for successful business decisions, becoming more accessible and user-friendly. To discover how business intelligence solutions like Analytics for LS Central can optimize your operation. Want to find out more? Contact us.
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