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Artificial Intelligence (AI) is increasingly the pivotal agent of change in retail today. It can be leveraged at every step of the retail process, from supporting more customer-focused assortment planning, pricing, clearance optimisation, accurate inventory management, and beyond.
Retailers are increasingly seeking to understand how these AI capabilities can reshape their business and support smarter decision-making to help prioritise profit, drive efficiencies, and keep pace with the competition. They need to understand that every type of data can be harnessed by AI to support and enhance decision-making throughout the business.
High volumes of data but how can it be used to drive benefits for retailers?
The retail sector generates an abundance of data every day, from both internal and external sources. Today, with AI and machine learning, the industry has a massive opportunity to work out how to deploy this data to more effectively manage what is an increasingly complex business.
Too often we see examples of data-rich retailers struggling to make clever use of their data due to poor management, storage, and governance. It is imperative to ensure data is reliable, flexible, and accessible to unlock true value. Allowing for the creation of actionable insights and customer-centric strategies.
As we continue to learn that human intelligence is the key to unlocking the best out of AI capabilities, implementing AI-driven analytics systems goes hand in hand with training the models' users. At the end of the day, AI is only a tool and must be coupled with human experience and intelligence to optimise decision-making. Trust in the tools and the associated outputs is integral to successful implementation!
Optimise customer experience by keeping up with their ever-changing demands using AI
AI is enabling retailers to make better decisions and optimise their business processes, but it also allows them to make better connections with their customers by providing a more personalised shopping experience. This is because AI can help retailers understand their customers better. Personalise their shopping experiences at the start of their customer journey and deliver a more targeted marketing campaign.
AI will only continue to support businesses in keeping pace with customer expectations and engaging in ever-more exciting ways. It has the potential to help retailers develop new services and products that are better aligned with customer needs, improve supply chain management, reduce costs, and increase profitability overall.
Have you considered how to leverage AI tools to meet customer expectations and demand?
Every client engagement we work on at TPC involves advising and implementing data science to add value and insight to optimise the management of retail businesses. This work is materially sales and margin accretive.
Contact us today! We would be delighted to have an informal chat with you about how to support your business.