August 22, 2023
Predictive analytics has emerged as an invaluable tool for retailers. The ability to anticipate consumer behavior and timely respond to ever-changing market conditions is one of the main competitive advantages in retail. With data analytics becoming more accessible, retailers heavily rely on predictive analytics services to conquer the market.
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In 2022, predictive analytics-powered programmatic advertising and market forecasting accounted for a 33.1% share of the global AI in retail market revenue.
Scheme title: Global AI in retail market revenue share, by application, 2022
Data source: gminsights.com — Artificial Intelligence in retail market
projected CAGR of the global predictive analytics in retail market from 2023 to 2032
Global Market Insights
more revenue is generated by companies that excel at personalization
McKinsey
With the help of predictive analytics, retailers can solve various business challenges and gain considerable competitive advantage. Let’s explore the top 8 use cases of predictive analytics in retail:
sales increase when making data-driven decisions around stock and store optimization
McKinsey
Being a pioneer in big data analytics and machine learning solutions, Itransition offers a suite of predictive analytics services for retailers. We can develop comprehensive strategies to help your business take full advantage of the power of retail predictive analytics.
Many retail industry leaders use predictive analytics to improve operational efficiency and customer experience. Some notable examples include:
Farfetch is one of the leading global platforms for the fashion industry, with a presence in over 190 countries worldwide. However, an internal audit revealed that Farfetch’s contact center faced many service and quality issues due to rapid international expansion. As the company opened offices and contact centers across the globe, new contact center agents were overwhelmed with information in the first 30 days on the job. To tackle this issue, the company needed an efficient solution that would cater to the needs of both veteran employees and newbies.
Image title: Agent Assist in action
Data source: talkdesk.com — Talkdesk Agent Assist, empowering agents to support customers
Farfetch turned to Talkdesk, a cloud contact center company, to find much-needed help in the form of AI and predictive analytics. As a result, one of Talkdesk’s signature services, Agent Assist, now provides customer support agents with real-time tips during conversations with customers. For example, with the help of NLP and predictive analytics, Agent Assist can transcribe calls in real time, automatically generate call summaries, suggest the next best actions, and reveal relevant articles from Farfetch’s existing knowledge base to provide customers with quick answers.
increase in customer satisfaction
decrease in resolution times
Here’s how you can start leveraging predictive analytics for your retail business:
Problem definition
Data analysis
Design
Implementation
Deployment
Support and maintenance
Pro version is
$13.70 user/month
Premium version
is $27.50 user/month, and $6,858.10 capacity/month
Some of the most common challenges associated with the implementation of predictive analytics in retail include the following:
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Description
Solution
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Modernize the existing architectures by leveraging microservices and APIs to reduce the complexity of integrating new analytics-driven solutions.
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Predictive analytics has become essential for retail companies looking to strengthen their competitive edge, improve customer experience, and increase efficiency. By leveraging advanced data-driven technologies such as machine learning and artificial intelligence, retailers can gain actionable insights and unlock new market opportunities. With over two decades of expertise in cloud technologies and advanced data analytics solutions, Itransition provides full-cycle predictive analytics services tailored to the retail industry. Start your journey today and join the leaders in the industry.