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The retail industry may benefit hugely from advanced analytics, including artificial intelligence. In a study, the McKinsey Global Institute assessed the potential yearly value of artificial intelligence for the retail business to be between $400 billion and $800 billion worldwide.

How can the retail industry growth fuel advanced analytics? 

Customer engagement:

Retailers must make decisions in the face of severe market pressure in today's economy. Market conditions change quickly, and many businesses face difficulties when the economy recovers. Retailers are now using advanced analytics to identify new capabilities such as share of wallet and predict consumer behavior. Consumers then have complete control over how, when, where, and with whom they interact.

Management of pricing and profitability: Big data analytics

can aid merchants in establishing, analyzing, and delivering prices in a predictable and long-term manner. With a large data set, merchants can gain important insights into different customer categories using analytics. It can also assist retailers in profitably tapping into unmet client wants. With this, retailers can fuel their growth and scale their profits.

The supply chain efficiency:

Retailers have a tremendous opportunity to use analytics to manage inventory better, cut transportation costs, and boost customer collaboration. You can allocate inventory to the most effective point of demand using predictive analysis. 

Detection of fraud and risk:

Through odd trends in businesses, you can use analytics to detect and prevent fraud. Some forms of behavior can be linked using a combination of statistical techniques. A forensics team can give a fraudster's genetic code. Analytics can help retailers stay competitive and reduce their losses.

Development of the workforce:

The workforce department can benefit from big data analytics. You can utilize it for a variety of purposes, including recruitment, retention, and workplace safety. It will also aid in increasing employee productivity and strategic budget management.

Conclusion

Retailers must spend on technical solutions and organizational competencies, which will necessitate a considerable investment in change management led from the top.

To read more articles like this, visit the Cogent website.