Black Friday, Artificial Intelligence and Machine Learning
Have you prepared your shopping carts for Black Friday deals?
We are sure most of you did, but have you ever wondered how big retailers prepare for Black Friday sales and plan such big promotions?
Due to COVID outbreak, customers changed their behaviour, and are still figuring out what our new normal will be. Due to the availability of information online, consumers are more equipped than ever before to compare products across 100’s of brands.
Traditionally, sellers used Black Friday to get rid of poorly selling items, but nowadays with the help of AI and big data they can analyze and predict sales. This is particularly important for the biggest shopping day of the year, Black Friday.
With the help of AI, Machine Learning and Big Data it’s now possible for retailers to predict where and on what customers will spend money with greater accuracy than ever before. And we are talking about not pricing only, inventory and distribution can all be managed more efficiently too.
Learning and analyzing big data about your customers leads to overall reduced operational costs and eventually lower the cost of products. It is vital that large companies are able to predict the popularity and therefore profitability of new products because large supply chains restrict them from introducing new products quickly. For many, this means deciding Christmas product ranges 9 months before the holiday season has started.
Machine learning software is built within recommender systems on websites which, based on customers previous purchases, can predict what customers will want to buy next, offering them more in-tune suggestions. It’s already out of date to make business decisions based on inaccurate surveys on small focus groups when you can analyze human behaviour in real-time.
There’s no doubt that technologists will continue to invent new ways to more accurately measure and predict customers’ behaviour, as well as use increasingly sophisticated tools to set prices at levels which will appeal to us as individuals, and put adverts in places we are likely to see them.
If you want to learn more about your customers, analyze and predict their behaviour, and optimize your business processes, we in IWIS we’ll be happy to help you with that.