Leading providers innovate with accelerators and AI models, reshaping efficiency and adaptability for retail competitiveness, as per ISG Provider Lens™ report insights.
Retailers Embrace Tailored Data Analytics
In a fast-evolving market, retailers worldwide are pivoting towards service providers to attain bespoke data analytics capabilities in a bid to outmaneuver rivals. ISG’s latest research delves into this shifting landscape, highlighting a trend where enterprises and providers collaborate to co-develop advanced analytics solutions that enhance planning, execution, flexibility, and customer responsiveness.
Customization Key in Retail Analytics
“Off-the-shelf platforms offer a foundation, but customization reigns supreme in retail analytics,” notes Rajib Datta, a partner at ISG, underlining the imperative for retailers to differentiate and innovate beyond conventional norms.
Deriving Value from Advanced Analytics
As e-commerce technologies mature, retailers are leveraging advanced analytics tools to unearth insights from the troves of data generated by online customer interactions. These tools, tailored specifically for the retail sector, unlock customer preferences and behaviors, revolutionizing personalization, pricing strategies, and supply chain optimizations.
Optimizing Marketing Strategies
Collaboration between companies and providers extends to optimizing marketing endeavors and promotions. By harnessing customized analytics tools, retailers can fine-tune their approach based on data-backed insights on loyalty programs, advertising responses, and channel effectiveness, thereby maximizing ROI.
Embracing Innovative AI
The adoption of generative AI (GenAI) in analytics is gaining traction, with retailers and providers exploring its potential in enhancing process efficiency and customer-centric use cases. With applications spanning natural-language processing, computer vision, and large language models, GenAI is enabling retailers to tackle intricate business challenges head-on.
Shifting Trends and Future Prospects
Retailers are increasingly focusing on areas such as environmental, social, and governance (ESG) performance while doubling down on safeguarding customer data. The evolving landscape of retail analytics presents both challenges and opportunities, driving the need for continuous innovation and adaptation.
Recognizing Industry Leaders
The 2024 ISG Provider Lens™ report identifies companies like Fractal Analytics, HARMAN, MathCo, Tiger Analytics, and Tredence as Leaders in retail analytics services. Additionally, ZS Associates is recognized as a Rising Star, showcasing promising potential in the evolving market.
Charting a Path to Retail Excellence
With a relentless focus on data and technology, retailers are charting a new course towards operational efficiency and customer-centricity. The strategic integration of digital innovations continues to be a top priority, reshaping the retail landscape and setting new benchmarks for success.
For more insights into the retail analytics landscape and strategic recommendations to address industry challenges, the full ISG Provider Lens™ report can be accessed from the official webpage.