Human beings are considered to be the most intelligent beings on the planet earth. They can use their mind to create technologies which can help in performance of certain tasks thus reducing human effort. Human knowledge is termed to be boundless. However, with the changing times business processes have become so complex that human beings cannot cope with the fast moving pace. They need a system which can think and solve problems like they can but with greater efficiency and speed. This lead to the advent of Machine learning (ML) technology which give computer systems the ability to think, learn and adapt according to need of the business enterprises.
Machine learning refers to the process of creating certain computer programs which can think on its own without any human effort. It should automatically learn from its previous activities, analyze them and further improve its functioning on future tasks. This technology has helped in completely revolutionizing every aspect of human life ranging from healthcare to business world.
Retail sector is one area which has gained from its adoption. Machine learning in retail sector has helped in bringing sea level changes with which they perform certain tasks like:
- Customers management and satisfaction:
Machine learning helps in automation of various business processes. Computer systems using Machines learning technology can get deep insight into customer demands and satisfaction from the services provided by retail business. The system can automatically collect and analyze important customer information from their buying patterns, social media websites and reviews uploaded online. The information gathered is analyzed to understand customer’s needs and create a future course of action for better sales. This in turn increases customer engagement and profitability of the retail business.
- Pricing decisions:
Machine learning technology can give retail organizations the ability to understand customer demands, competitors pricing decisions and market trends. This helps the businesses to create their own pricing strategy which reduces cost and increases profits. Companies can even determine the right price of a product depending upon customer demands.
- Inventory management:
Retailers have benefited with the machine learning technology which informs the retailers regarding the need to replenish stock according to customer needs. The automated system analyses and predicts future customer demands. Using this information, retailers can take decisions relating to the inventory level needed for fulfillment of future customer orders. This in turn reduces the risk of maintaining redundant inventory and prevents unnecessary spending on replenishment of stock.
Various machine learning companies in retail sectorare engaged in creation of innovative solutions for solving various problems faced by retailers in adopting and managing this technology. They help a retail organization by providing consultation services which improves their ability to understand the applications of this technology in their business. It is important to make retail organizations realize the need of adopting this technology for better customer satisfaction. It is possible by elaborating the benefits of machine learning which are as follows:
- Boost in sales by predicting future demands.
- Fast and effective delivery of products by understanding the shortest route to the destination.
- Better user experience upon checking out of the payment counter.
- Better inventory planning
- Detection of fraudulent activities as every information is checked by the automatic computer system.
These benefits make machine learning the best invention for any business especially Retail sector.