Demystify Reopening with Machine Learning
Traditional retail undoubtedly finds itself in unprecedented times, and with that, it’s difficult to know exactly how the future of retail will look. As we help your company build that future, there is no need to step into it blindly. Through modern data systems, we can illuminate the path forward.
Though everything we’re seeing right now during the COVID-19 pandemic is certainly novel, there’s a plethora of analogous data, such as historical traffic versus sales trends, that can be used to extrapolate the future of a company. We use historical data, data from other regions that are further along the reopening process, as well as publicly available data to create a model of what the future looks like.
Using machine learning to take advantage of this seemingly disparate data has never been easier — powerful predictive models are a few clicks away, with any major cloud-compute provider. However, the most complicated machine learning models are only as useful as the actions they enable you to take. Visualization platforms, such as Tableau, provide the tools to unlock those insights in a visual and intuitive way and allow your business to take data-driven actions with a few clicks and toggles.
Artificial intelligence cannot tell you exactly what your customer basket size, foot traffic, or any other Key Performance Indicator (KPI) will be, but it can give you a range of possible outcomes with a high degree of certainty — and it grows in maturity and accuracy as it gets to know your unique data over time. The goal is not to have these data systems make your decisions for you, but rather to equip you and your subject matter experts with the tools needed to make the best possible decisions, with rich context.
Using a tool like Tableau, we can turn that uncertainty into interactive elements that let users model a multitude of scenarios that give businesses a holistic view of their future state. Machine learning and AI can yield successful, modern stacks — however, visualization tools like Tableau can make concepts more accessible through user-friendly interfaces. The ability to tune scenarios dynamically helps future-proof your business — as the circumstances change, users can respond by tuning those input parameters. These tools let you ask questions like:
- What would happen if foot traffic went down by 30%?
- How much larger a basket size can I drive with a minor discount? Is that enough to be profitable?
- When should the store be open, and how many people do I need to work at that time?
- If I have a known limit beyond my control (like a city-mandated capacity, or a supply chain outage), what should I expect for my sales and conversion?
The ability to shift your model as easily as selecting your toppings on a pizza allows your business to quickly respond to an ever-changing retail climate, with virtually no learning curve.
As your business regains its footing and reopens, Slalom is here to empower you to face that new normal with a full analytics toolkit. Our industry expertise & tech knowledge can help tailor a solution that fits your own needs, with the tools available to you, in any industry.
Want to get a preview before rolling out the full analytics suite? Let’s connect and discuss our 5-week pilot program, accelerating your journey, and showing your team the art of the possible. Feel free to contact me, Saurabh Rane, at saurabh.rane@slalom.com.
Disclaimer: Slalom is a partner of Tableau.
Slalom is a modern consulting firm focused on strategy, technology, and business transformation. Slalom is leveraging technologies across the full-data pipeline as a part of our Retail Innovation Accelerator program that drives organizations towards their specific business outcomes using a modern technology stack. @slalomnyc
Saurabh is a consultant on the Data & Analytics team for Slalom New York.
