News

07/07/2023

AI in Retail: How Technology is Transforming the Consumer Experience

So, how does analytics and AI reshape retail? Let’s find out!

Today’s consumer, known as Consumer 5.0, is increasingly demanding when it comes to where they shop. Therefore, retail companies that implement Artificial Intelligence (AI), capable of personalizing and streamlining customer service, as well as improving decision-making, may be preferred.

Without this technological resource, it becomes more difficult to keep up with consumer demands and satisfy them. As a result, your retail business can easily fall behind, diminishing profits compared to other businesses that have embraced AI.

Do you see how AI in retail can be important? Keep reading to learn more about the benefits of analytics in the industry!

What is retail data analytics?

It involves the collection of information about the target audience, sales, inventory, and other relevant retail data. This allows for the discovery of trends and better decision-making. After all, there is a more informed understanding of what customers are looking for and how the retail business is performing.

What are the types of retail analytics?

There are four types of retail analytics, each with its own relevance, including:

  • descriptive analytics – building insights into the past and present performance of the company.;
  • diagnostic analytics – identifying potential problems that are hindering the organization.;
  • predictive analytics – detecting potential issues that may affect the retail business in the future;
  • prescriptive analytics – guiding retailers on what actions to take to improve overall performance.

What advantages does AI offer in retail?

As mentioned, Artificial Intelligence offers several advantages by analyzing a range of strategic data. Let’s explore more about the positive aspects offered by AI!

Provides personalized experiences

AI understands the main complaints and even compliments from the public. It contributes to the retail business developing solutions tailored to these needs, thereby increasing customer satisfaction. Another positive aspect is the ability to measure customer engagement with the created strategies.

Demand forecasting

AI helps understand consumer behaviors and trends, enabling the prediction of demand. As a result, retail decision-making becomes more aligned with customer interests, increasing the likelihood of satisfaction. For example, a company can request a higher or lower quantity of products in stock based on predicted demand.

Inventory automation

Inventory management is a challenge for any business. After all, running out of products can lead customers to switch to competitors. Similarly, excessive items bring losses to the business, especially when they are perishable.

Thus, AI is beneficial by automating inventory management through the collection of information from cameras, sensors, and other sources. This information facilitates the tracking of stock inputs and outputs, ultimately enhancing the shopping experience.

So, have your main questions about the role of AI in the retail sector been answered? As mentioned, analytics technology brings various benefits, such as inventory automation, demand forecasting, and personalized shopping experiences.

At Artycs, we can assist you with AI solutions in retail. Want to know how? Get in touch with us and find out!

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