How artificial intelligence and big data drive success in the retail sector

The retail sector in Mexico has experienced constant evolution in recent years, with technology at the center of this process. Artificial intelligence and big data have played a crucial role in how retail companies interact with their customers, manage their inventories, and make business decisions to boost their competitiveness and respond to market demands. 

2022 was a great year for retailers in Mexico. According to the Mexican Association of Online Sales (AMVO), retailers achieved a 23% increase in sales, reaching a value of $528 billion pesos. This is a significant increase for the industry, three times more than what was recorded in 2019, before the pandemic. 

The outlook remains positive in 2023 and heading into 2024, where it is expected that online sales, as well as those made through catalogs, call centers, or even door-to-door, that is, all those not made in physical stores, will increase by 10% to 12%. 

This growth brings new challenges for the industry. As the retail sector in Mexico continues its technology-driven evolution, significant challenges arise that companies must address to maintain sustainable growth and competitive advantage. 

The Power of Data in the Retail Industry 

At the heart of the technological revolution in the retail sector is big data. Retail companies generate a massive amount of data daily, from point-of-sale transactions to online interactions. This data is a goldmine of information that can be used to understand customers, optimize processes, and make informed decisions. 

Big data allows retail companies to efficiently collect, analyze, and visualize large data sets. This, in turn, enables them to identify trends, forecast demand, and personalize the customer experience. With advanced data analysis, retailers can segment their customers into more specific groups, offer personalized recommendations, and adjust their pricing strategies more effectively. 

Additionally, to drive commercial value derived from data analysis in the retail sector, it is essential to strategically leverage the collected information. A notable example is customer traffic analysis, known as ‘People Tracking.’ By using customer tracking systems in physical stores or monitoring online behaviors, companies can identify movement patterns, preferences, and purchasing trends. This information is invaluable for personalizing the customer experience, optimizing product placement, and offering relevant promotions at the right time. 

According to a study by McKinsey & Company, companies that use big data in their marketing strategy can increase their revenues by 10% and reduce their costs by 20%. Regarding the personalization of the shopping experience, a report by Accenture revealed that 91% of consumers are more likely to shop with brands that offer personalized offers and recommendations. 

The Role of Artificial Intelligence in a Retail Context 

Artificial intelligence (AI) is the technology that makes the automation and optimization of complex tasks in the retail sector possible. By combining AI with big data, retail companies can achieve significant advances in key areas such as: 

• Personalized Recommendations: AI algorithms can analyze purchase history and customer behavior to offer highly relevant product recommendations, increasing sales and customer satisfaction. 

• Inventory Optimization: AI can predict demand and manage inventory more efficiently, reducing costs and preventing stockouts. 

• Customer Service: AI-powered chatbots and virtual assistants can provide 24/7 customer service, answering common questions and improving the customer experience. 

• Fraud Prevention: AI algorithms can detect suspicious patterns and prevent fraud in online and physical store transactions. 

Establishing Partnerships with Experts in AI and Big Data Integration 

Establishing strategic collaborations with specialists in implementing artificial intelligence and big data technology in the retail sector is a crucial step to maximize the benefits of these innovations. In this context, Ikusi stands out as a fundamental ally. Its Full Visibility with ThousandEyes service not only provides a comprehensive and detailed view of the network and customer experience but also offers tools to monitor, analyze, and improve digital infrastructure comprehensively. 

With Ikusi, retail companies can obtain an accurate diagnosis of their needs, optimize the customer experience, adjust strategies to improve operational efficiency and decision-making, and have complete monitoring of their networks and applications in real-time. 

If you are a retail company looking for expert collaboration to implement these emerging technologies, we invite you to click here to contact us.