Consumer shopping behavior has fundamentally changed, probably forever. As the world adapts to this ‘new normal’, many retailers and consumer product companies must change the way they operate. Their supply chains must be nimble; their product packaging must be versatile; their demand response must be dynamic.
When I run introductory workshops with retail clients to help them understand the value of AI – and more importantly what wins they should reasonably expect and where they should start – one of the things we always caution is to remember that not everything is forecastable. Well if the events of the last few months have reinforced anything, it is exactly this point.
Gartner estimates that the fragmented but quickly consolidating customer experience and relationship management software market generates $50BN in revenue per year and is growing at a 15% compound annual growth rate. If we add the additional investment in IT, human capital, and creative development, brands invest well over $100BN per year to deliver relevant and valuable experiences to their customers.
Many of my colleagues have recently posted articles on Consumption Sensing, a forecasting approach that focuses on anticipating consumer demand. This approach has become even more vital during the pandemic as consumers’ needs and shopping behaviors change dramatically. But the new challenges don’t stop there.