Retail Analytics Guide


The most crucial ball businesses have in their court is artificial intelligence to predict customer demand, especially in retail and e-commerce. Although all kinds of companies can benefit from the innovation of the AI industry, the boom of social media and digital retail has proven to leverage predictive analytics tools to provide results to managers in line with their expectations.Download A Free Financial Toolkit

The Meaning of Predictive Analytics 

Artificial intelligence has come a long way from its quintessential portrayal in the entertainment industry in the form of human-like robots. In the business marketplace, managers use predictive analysis, a branch of AI, to forecast customer demand, deliver better services, and beat the competition to keep moving forward. With the help of big data models, business enterprises work with essential customer data, predict trends in the market, and use customer insights to align their business strategies accordingly.

E-commerce and retail industries provide the following tools for organizations to leverage their position in the market:

  • Determine which products to keep manufacturing versus which need improvement
  • Enhance return on investment for the stockholders of the company
  • Improve customer service and meet their expectations
  • Strengthen the manufacturing process
  • Save up on arbitrary costs such as warehousing, managing inventory, meeting unpredictable demands, et cetera

The Benefits of Predictive Analytics in Retail and E-commerce

Defining the target audience Online predictive tools by famous companies such as Google and Yahoo! enable retailers and e-commerce enterprises to narrow their audiences for a much better return on investments and product sales. How does this help identify the target audience, though? When a business can determine the nature of its product and the consumer behavior around the offering, it is more tuned in to what to produce and how much.LastPass – Family or Org Password Vault

Forecasting Demand and Performance

Every business out there needs to know beforehand the most likely market response to their product. If not, managers run the risk of wasteful spending and impacting the company’s bottom line. Especially in the retail and e-commerce industry, organizations benefit from using online tools that help them see what their target audience is interested in. For instance, an e-commerce website would like to know the hottest-selling items in the last year to identify the brand direction for this year. Similarly, retail outlets want to know which brand and products must occupy the front-most shelf space to make the most sales and beat the competition.

Marketing Campaigns

Marketers work year-round on campaigns that will do well for the brand. Can you imagine a brand team trying to develop a product strategy without relevant data on its sales? Brand managers run personalized ad campaigns, focused product targeting and retargeting, and digital ads for their target audience to promote key performance indicators like product sales, brand loyalty, and return on investment for the business. Managers and marketers play an important role with the help of customer insights generated by predictive tools when they devise strategies to take their brand to the next level.

Controlling the Manufacturing Process

The manufacturing industry is no stranger to when it comes to increasing efficiency and productivity for organizations. The manufacturing industry has come a long way from Alfred Weber’s initial theory of industrial location to decrease the cost of resources to introducing artificially intelligent robotic arms at the production line.

Supply chain processes are much quicker, manufacturing bottlenecks are better mitigated, and any other glitches can be mitigated. To keep effective production going for organizations, thanks to predictive analytics and its learning capabilities. Managers spend more time strategizing and reducing damage control for their brands in the retail and e-commerce industries than before, which helps them focus on areas that matter for a business, such as creative solutions that set them apart in the face of competition.ADP. Payroll – HR – Benefits

Anticipating Customer Needs

Online retailers and e-commerce store managers have access to customer information, from demographics to preferences based on purchase history. Online store retailers can use these insights about their customers to develop strategies and campaigns to keep them loyal to the brand. Doubling understanding with creative solutions helps brands win an edge over the competition and promotes a long-term relationship between the brand and the customer.

An online retail and e-commerce store can also help brand managers track the digital customer journey to enhance customer touchpoints. This information allows companies to improve their websitescustomer service experience, and post-sales feedback systems to ensure happy customers.


Artificial intelligence and predictive analytics have given birth to many multi-billion-dollar online businesses such as Amazon, Alibaba, and Walmart. It has provided companies with growth opportunities and resulted in anticipation of customer demand, effective marketing campaigns, better manufacturing processes, forecasting sales, and even targeting a more focused audience. Being precise in their approach helps managers manage customer expectations and deliver better results every time.

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