RetailBiz: How retailers can capitalise on real-time data

By Paul Berkovic, Co-Founder and CCO, Rayven 

The ecommerce industry has been one of the fastest sectors to adopt AI, responding quickly to growing consumer demand for fast, streamlined, and personal customer experiences.

With 80% of ecommerce organisations already using AI and nearly 90% of Australian consumers preferring a mix of human and AI-powered customer support, it would be easy to assume the industry has done enough to make the most of this emerging technology.

However, the stats show a different story when we assess how AI is used within businesses and whether it is delivering the anticipated results. Research shows only 33% have fully implemented AI, and 47% are in the experimental phase.

While the hype around AI and the investments that have followed have merit, in reality, most retailers are still limiting their use of AI to customer chatbots. Again, this is beneficial as it can significantly cut costs, improve customer service levels, and provide the business with updated information about what customers want and need. But this is merely scratching the surface of opportunities that AI can offer businesses.

Going beyond the chatbot with real-time data

AI is often distracting retailers from a much bigger opportunity – real-time data. Real-time data is not only the most common hurdle for businesses wanting to adopt AI, it is also often overlooked for its own capabilities and potential.

Here are just a few examples of how real-time data can be leveraged in retail to deliver tangible results:

• Connect Point of Sale (POS) systems to the cloud, enabling real-time data analytics and centralised data management to drive enhanced decision-making, improved customer experiences and increased operational efficiency
• Real-time inventory tracking and management could include automated alerts for low inventory levels and predictive analytics to forecast demand to achieve reduced stockouts and overstocks, directly impacting the business’ bottom line
• Count and analyse foot traffic in stores, integrating the data with POS, financial and other systems, to help the business understand how to optimise staffing in line with peaks in customer traffic, improve marketing strategies to better measure the impact of in-store promotions, and enhance the overall store environment
• Add IoT devices to existing infrastructure and utilise ‘Smart’ assets to monitor store energy use, HVAC efficiency, maintenance needs, and more; enabling you to spot inefficiencies, control assets remotely, and significantly reduce operational costs.

Retailers have more power at their fingertips than they realise

As AI continues to be touted as “new” and “disruptive” to every industry including retail, it can be tempting for business leaders to assume they need to overhaul their current systems, hire rapidly for specialised AI talent, or invest heavily in completely new tools and technologies. By refocusing on what is achievable today, retailers can invest more pragmatically in making the most of the hundreds of thousands of pieces of data they already have at their fingertips.

As proven in the above examples, interconnectivity – i.e. enabling data sources to talk to one another with data flows between them – is priceless. It also does not require an overhaul of technologies but instead involves the connecting of existing tools, platforms, or systems within the business. This is starkly different to the complexity that many business leaders associate with the adoption of AI, and is also more cost-effective, less resource-intensive, incurs minimal amounts of risk, and is genuinely actionable in the short-term.

The financial and operational benefits of real-time data for retailers are boundless, yet most retailers are merely at step one in understanding what it can truly achieve. Don’t get overwhelmed or distracted by AI without first having a plan for generating and making the most of the real-time data currently available.

Think of it like getting a conductor for your orchestra: all the instruments and talent needed are already there, it’s time to pool together their capabilities to make a symphony.

If you'd like to find out more about how the Rayven Platform can help you to conquer these challenges, fast - all without having to change or update your current technologies - please book a demo and get some free, custom advice from one of our experts.

This article was featured on RetailBiz here on 22-Oct-24.