The e-commerce market has provided a significant boost to the retail industry, and the sector is growing at a breathtaking speed. Retailers are using various innovative measures to enhance customer experience and increase productivity. Furthermore, the consumers also demand a more personalized experience from the retailers which is based on their preferences.
Customers have a plethora of options from the online to offline channels that enable them to choose the retailers that offer the desired services. The retail industry has started using Artificial intelligence (AI) and its core elements like machine learning (ML) to optimize pricing. The AI tools automate the repetitive and mundane tasks, allowing retail managers to craft a strategy to use their workforce for ensuring rewarding customer experience. According to a report by Gartner, the AI-enabled price optimization tools help the retailers to increase their revenue by boosting profit margins. It also eliminates more than 70 percent of the discount approvals and allows companies to increase their customer life-time value (LTV) by 20 percent.
Check out: Top Machine learning Companies
Machine learning algorithms enable companies to deliver profitable results by offering actionable insights into their business processes and operations. The ML algorithms analyze patterns in large data sets to provide the insights that are based on all the successful and failed operations of a company. The analysis helps the ML tools to predict the outcome of pricing and promo decisions.
Although the ML technology has proved to be the game changer for many industries, it has not been able to garner widespread recognition of the retailers. A proper implementation with comprehensive strategies can help to increase the adoption of ML technology. Companies need high-quality data with a well-oiled infrastructure to leverage the full potential of ML technology. Businesses also need a trained, dedicated and perceptive team to apply the appropriate algorithm to a specified data set. ML tools can provide the agility to retailers, enabling them to build rewarding customer experience and increase revenue.