Advancement of Business Intelligence in Retail Industry
These days, businesses all around the world are implementing Business Intelligence solutions. The reason for this is that BI solutions give tremendous benefits. Whether it is Business Intelligence in Retail Industry, Manufacturing Industry, or Healthcare, it’s a big help for businesses.
BI solutions aid in the tracking of business progress in a variety of industries. It helps a company get insight into its raw data and allows them to make well-informed business decisions by analyzing the raw data and revealing useful business information.
Business intelligence has become an important aspect of the retail business around the world since it allows them to effectively and efficiently monitor any threats to the industry. It also aids them in achieving their desired retail business objectives. It helps to track key KPIs of the Retail Industry.
It offers a myriad of tools to organizations. From managing the large amount of data that it generates to effectively analyzing and integrating this data, which helps in enhancing the industry’s performance.
The Advent of Business Intelligence in Retail Industry
For decades, traditional analytics has served the data-driven retail industry admirably. Artificial Intelligence (AI) and Machine Learning (ML), on the other hand, have brought a whole new level of data processing to the table, resulting in more detailed business insights.
By identifying anomalies and correlations from hundreds of Artificial Intelligence/Machine Learning models, data scientists could open up a new world of possibilities for business owners. Artificial Intelligence firms raised $1.8 billion in 374 deals between 2013 and 2018, according to CB Insights.
Amazon can take credit for these impressive figures because it persuaded corporate leaders to reconsider their positions on AI in the retail market. Over 28% of retailers have already deployed Artificial Intelligence/Machine Learning solutions, a sevenfold rise from just 4% in 2016.
Utility of Business Intelligence in Retail Industry
Just like every industry faces specific challenges, so does the retail sector. Listed below are the most common challenges that the retail industry faces and how BI in Retail Industry is a help –
1. Out-of-stock problems
When products run out of supply, it reflects poorly on the company. Nothing says “we don’t know what our customers want” like things that run out of stock. So what’s the solution? Loading an inventory with items to discard the out-of-the-stock issue is futile and costs a lot.
It is where Business Intelligence solutions help with retail industry challenges. BI solutions help provide helpful business information, leading to better inventory management and not creating overstock and under-stock issues.
It provides you with information on the best-selling products on the market. BI also aids in the identification of client demands and behavior patterns, as well as keeping the business up to date on current trends.
It leads to better business planning and effective inventory management, which successfully satisfies the customers’ needs, leading to incredible business growth.
2. Competitive business market
Competition has become exceedingly high these days. To impact the business market, it is central for retail organizations to have a competitive edge over their business rivals.
The retail industry is under a lot of stress as a result of its ambition to outperform its competitors. As a result, determining your position in the commercial market may be difficult.
However, with BI solutions in hand, determining your market position becomes a lot easier. BI tools not only assist you in determining your company’s position in the market but also give a slew of other extremely beneficial features.
These include business performance management (BPM) which makes the retail industry figure out its goals. BPM helps businesses take measures to get these goals, tracking customer behavior and views.
Also, it helps them analyze the areas where they are lacking by monitoring an organization’s sales performance in all aspects, which compels them to make improvements in those areas.
It helps them make strategically important decisions, which are cost-effective and customer-satisfying. In this way, they help businesses keep themselves ahead of the competition and help them leave a huge impact on the market.
3. Inaccurate data
A large amount of data gets generated by retail industries every single day. And data is very integral to the industry as it helps them make significant business decisions.
But the highly varying nature of generated data makes the data management and storage procedure very hard. It is practically hard to track all this essential data from supplier information, selling and buying patterns, to employee and inventory information.
Retailers employ BI solutions to avoid working with erroneous data, which could lead to poor data management. BI solutions aid data management by separating accurate data from faulty data, allowing businesses to make better business decisions.
Ad hoc reporting and regular data checks are all great ways BI solutions help organizations work with accurate data, thereby improving the operational efficiency of an organization.
4. Ineffective management of multiple stores
Expanding a store by implementing multiple stores geographically offers various benefits like more public recognition, which in turn attracts more customers and takes your business to a new level. But, it could also pose a lot of problems.
There is added pressure to do well across all your stores, meet the needed profit goal for the stores’ successful running, and provide customer satisfaction. Bi in retail industry saves the day by helping your organization get more bang for your buck.
It provides organized planning and effective reporting benefits. It also offers actionable insights which let you analyze the data to uncover the hidden data patterns, figure out the customer behavior and demands, and track your business sales across all stores.
It, in turn, leads to better management of multiple stores. It boosts the growth of the organization and provides them with a competitive edge. And help to generate higher returns in terms of profit.
5. Difficulties in price predictions
The price of a product is forecasted based on demand, seasonal trends, characteristics, the release date of new models of the same item, and other factors. Consider an app or service that informs your clients about how the price of a specific product will fluctuate.
This is achievable using Artificial Intelligence, and it is quite simple to implement. A price prediction feature, for example, could aid in client retention. However, in the retail industry, business intelligence might achieve much more than just a pricing prediction.
Personal and some other Artificial Intelligence platforms build an individual approach to each customer. Personal has an Intelligent Incentive platform that analyzes each customer’s psychology and emotions to increase purchases.
The algorithm analyses the emotional responses and behavior of customers throughout prior purchasing experiences in order to build the best pricing offers for each trip.
6. Improper assistance with customer service
It’s not always easy to cater to each customer’s preferences and convenience. AI chatbots boost consumer service by improving search, sending notifications about new collections, and suggesting related products.
If a buyer has already purchased a black hoodie, a chatbot can recommend a snapback to complete the appearance. Eighty percent of global brands are utilizing or planning to deploy AI chatbots in the near future.
Let’s Conclude
The solutions of BI in Retail industry have transformed how retail stores operate across the globe. It helps them generate more revenue, attain new opportunities, make better decisions, find Key KPIs for Retail and improve their overall operational efficiency.
It allows them to make an impression on the corporate world and distinguish themselves from the competition. Given the numerous benefits that BI systems bring, it’s no surprise that more and more businesses are using them.
ARE YOU INTERESTED IN DEVELOPING AI SOLUTION FOR RETAIL? Contact our experts at Thinklayer to get a free consultation and time & budget estimate for your project.
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