When we talk about digital transformation in retail, we are talking about bringing people, processes and data together to generate value for the end customer, whether they are buying online or offline. The retail sector has tried numerous ways and approaches to meet the needs of new online consumers through the convergence of the online market with the physical one, creating an omnichannel approach. The online retail industry has seen, in recent months, a very accelerated growth, due to the pandemic having forced various companies to transform their way of doing business. Once online, the customer has a greater control over the industry - and a successful experience attracts the customers' attention, making them spend their money often on impulse.
DO YOU KNOW YOUR CUSTOMER?
A recent study carried out in the United States by Global X ETF-s showed that 85% of Millennials (1980-2000) and 78% of Baby Boomers (1965-1980), are willing to buy online without ever seeing the physical product. Considering that Millennials already make up the most of the United States’ workforce, this shows how important it is to have an online presence and to know the customer that’s visiting your online business.
But how do you get to know the customer? We live in a period often called the Digital Age, when data is produced and travels almost at the speed of light. In this context, the difference between successful organizations and others, is the ability to convert data into knowledge, doing it as quickly as possible and combining that new knowledge with your own companies’ insights. This will make it possible to create increasingly customized experiences to customers.
AI AND MACHINE LEARNING WORK TOGETHER TO CREATE PREDICTIONS
For this to happen, it is necessary to create emotional connections between the customer and the retailer, by making the first feel valued and appreciated. To create these links comes Artificial Intelligence (AI) and Machine Learning that will play a vital role in this relationship. AI will collect data from various sources so that the Machine Learning tools can work on them and create future predictions - expected behaviors by the customer, that may or may not result in purchases.
Machine Learning tools help retailers identifying these buying behaviors and patterns, customizing the experience, sales, offers and recommendations in price ranges which the customers are willing to pay. They also help you understand and anticipate what emotional, thoughtful or impulse purchases are while creating a tailor-made experience.
Customers also expect that their experience and the offer they receive from retailers will be customized and adapted in real time to the behavior they are experiencing at that moment and not based on their past shopping or history. The existence of tools that capture data and create information in real time is therefore critical. By not suggesting a particular product at that moment to a customer, a retailer may be losing a sale or a customer, who knows for sure.
The message for retailers is that it is not possible to live in a Digital Age, with such a proliferation of data, and not to transform that data into information and make it a constant and valuable learning that translates into immediate and future revenues.
So, if you want to know more about how you can make the most of your data, feel free to contact us!
Read the full article here.