Artificial Intelligence and data analytics solutions have been the driving force behind the growth of various industries. Manufacturing, healthcare, finance, and most importantly, the retail sector are business verticals leveraging these innovative technologies’ potential.
Among the various industries, the retail sector is massively implementing AI and data analytics solutions. The industry is witnessing this accelerated growth in implementing these technologies due to reduced customer churn, improvement of customer retention rate, and, most importantly, to offer a better customer experience.
Retailers across the globe have now understood that customer insights can not just add profit to their business, but they can also help them add value to their business in terms of customer satisfaction, higher retention, and improved customer acquisition. As a result, the retailers implement technologies and services such as AI, advanced data analytics, and machine learning to their businesses to collect, process, and visualize data to generate actionable insights.
According to a report by Research and Market, the global retail analytics market is projected to grow with a 19.4% CAGR. The report also states that the retail analytics market shall reach a value of US$ 10.4 billion by the end of 2023.
Now that the rate at which retailers are implementing technologies like data analytics and artificial intelligence into their business is known let’s figure out the impact of these technologies in developing actionable customer insights.
The first and foremost step to generate the insight is to develop an effective strategy to collect the data from sources such as comments, reviews, shopping patterns, and products purchased. It is highly recommended to create a roadmap that will allow the retailers to collect, process, and use the data to develop personalized experiences. With the help of data analytics assessment and strategy services, retailers can develop a plan of action that shall help them attract new customers while retaining the existing ones.
To improve the reach of the business, effective marketing plans are a mandatory asset for any retailer. Data analytics solutions such as customer segmentation, data mining, and customer value analysis allow retailers to understand their customers’ preferences, frequent purchases, and purchases. This will enable them to provide preference-based offers and schemes, improving the customers’ overall shopping experience.
3. Customer Relationship
Retaining customers purely depends on the relationship a retailer has with its visitors. Providing appealing offers and personalized discounts may be one of the parameters in strengthening the relationship. However, the majority of customer relationships happen with after-sales services. How well a retailer provides maintenance of the product? And, How quickly the customer receives support from the retailer? Nevertheless, the major challenge associated with customer relationships is the retailers’ lack of maintenance and support. As a result, the retailer has to face customer complaints, churns, and loss of prospects.