How Artificial Intelligence And Big Data Drive Success In the Retail Sector

The retail sector has experienced constant evolution in recent years and technology has been at the center of this process. Artificial intelligence and big data have played a crucial role in the way retail companies interact with their customers, manage their inventories and make business decisions to boost their competitiveness and respond to market demands.

How artificial intelligence and big data drive success in the retail sector

How artificial intelligence and big data drive success in the retail sector

2022 was a great year forretailers. According to the Association of Online Sales, retailers achieved a 23% increase in their sales, reaching a value of $528,000 million pesos. A significant increase for the industry, three times more than what was recorded in 2019, before the pandemic.

The scenario remains positive in 2023 and looking ahead to 2024, where it is expected that online sales, as well as those made through catalogues, call centers, or even door-to-door, that is, all those that do not are carried out in physical stores, increase between 10% and 12%.

This growth brings new challenges for the industry. As theretail sector continues its technology-driven evolution, there are significant challenges that companies must address to maintain their sustainable growth and competitive advantage.

The power of data in theretail industry

At the heart of the technological revolution in theretailsector is big data. Retail businesses generate a massive amount of data every day, from point-of-sale transactions to online interactions.

This data is a goldmine of information that can be used to understand customers, optimize processes, and make informed decisions.

Big data allows retail companies to efficiently collect, analyze and visualize large sets of data. This, in turn, allows them to identify trends, forecast demand, and personalize the customer experience.

With advanced data analytics, retailers can segment their customers into more specific groups, offer personalized recommendations, and adjust their pricing strategies more effectively.

Furthermore, to drive business value derived from data analytics in the retail sector, it is essential to leverage collected information strategically. A prominent example is customer traffic analysis, known as ‘People Tracking’.

By using customer tracking systems in physical stores or monitoring online behaviors, companies can identify movement patterns, preferences, and purchasing trends.

This information is invaluable for personalizing the customer experience, optimizing product layout, and offering relevant promotions at the right time.

According to a study by McKinsey & Company, companies that use big data in their marketing strategy can increase their revenue by 10% and reduce their costs by 20%.

When it comes to personalizing the shopping experience, an Accenture report found that 91% of consumers indicate they are more likely to shop with brands that offer personalized offers and recommendations.

The role of artificial intelligence in a retail context

Artificial intelligence (AI) is the technology that makes it possible to automate and optimize complex tasks in the retail sector. By combining AI with big data, retail companies can make significant advances in key areas such as:

  • Personalized recommendations.AI algorithms can analyze customer purchase history and behavior to offer highly relevant product recommendations, increasing sales and customer satisfaction.
  • Inventory optimization.AI can predict demand and manage inventory more efficiently, reducing costs and avoiding product shortages.
  • Customer Support.AI-powered chatbots and virtual assistants can offer 24/7 customer service, answering common questions and improving the customer experience.
  • Fraud prevention.AI algorithms can detect suspicious patterns and prevent fraud in online and in-store transactions.

Establish alliances with experts in the integration of artificial intelligence and big data

Establishing strategic collaborations with specialists in the implementation of artificial intelligence and big data technology in the retail sector is a crucial step to maximize the benefits of these innovations. In this context, Ikusi stands out as a fundamental ally.

Its Full Visibility with ThousandEyes service not only provides a comprehensive and detailed view of the network and customer experience but also offers tools to comprehensively monitor, analyze and improve digital infrastructure.

With Ikusi, retail companies can obtain an accurate diagnosis of their needs, optimize the customer experience, adjust strategies to improve operational efficiency and decision making, and have complete monitoring of their networks and applications in real-time.

If you are a company in the retail sector and are looking for the collaboration of experts to implement these emerging technologies, we invite you to click here to contact us.

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