Retailers across the globe are fighting to attain the much-required edge over their competitors. As a result, there has been an increase in the adoption of analytics solution adopted by them. As per data from a study by MarketsandMarkets, the retail analytics market is likely to double in size in the period of 2015-2020. At the end of 2020, it’s expected to be worth US $5.1 billion dollars. The primary focus of retailers will be to embrace the internet of things in retail that will help generate actionable data about customers. Retailers will also look to increase the adoption of artificial intelligence in their operations, especially to further their marketing ambitions.
Here is a look at a few important retail analytics trends for the future.
Artificial Intelligence: Increased Adoption by Retailers
Marketing is one of the most important facets for retailers. Every retailer wants to innovate from time to time with regards to their marketing initiatives. What retailers want is more information and data about their customers, so that they can better target to them in the form of personalized offers and recommendations. Artificial Intelligence can help retailers acquire important insights about the customers. This will make it easier for them to market to them in a more relevant and context-aware manner. AI will help retailers provide enhanced levels of personalization to the customers.
As per the graph below, 22% and 11% of retailers listed personalization and artificial intelligence as primary when asked about the marketing technology innovations that excite them the most (2017 Digital Retail Innovation Report-Sailthru). Thus, it can be said with conviction that the increased adoption of AI will be one of the major retail analytics trends in the time to come.
Retailers will Power the Use of Data Analytics
As discussed earlier, retailers will look to embrace the internet of things in retail. A lot of retailers have already reaped benefits by implementing proximity sensors in their retail stores. In the time ahead, even more retailers will look to follow suit. The IoT data gathered from this technology provides a lot of actionable insights and data to the retailers like customer movements, dwell time, customer behavior, etc. All this information will help retailers reach a position of dominance as it will make it easier for them to personalize the shopping journey of the customers, and in turn offer enhanced levels of in-store experience to them. As per a latest report by ABI research, around 400 million beacons are forecasted to be deployed globally by 2020. Thus, retailers powering the use of data analytics to drive home a lot of advantages will be one of the major retail analytics trends in the time to come.
Dynamic Pricing: The Retailers’ Go-to Solution
Retailers, both online and offline, have always resorted to dynamic pricing during times when they really had to generate increased sales. The same will be the case in the future as it makes up for another crucial retail analytics trend in the time to come. Pricing is one of the major factors that influence the buying decision of customers. Retailers will look to either compromise on the profit margin and maintain their market share by decreasing the price of the items to expedite sales, or completely focus on the profit margin by increasing the price – depending on the market scenario and circumstances. Retailers will look to be completely aware of the price which their competitors are allocating in real time and make changes accordingly. Because, the customers will always look to compare prices and settle for the best deal.