MachineX: Anticipate Customer behavior for Retailing

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In this blog, we are going to see the power of Customer behavior Anticipation and how it can derive the success of the retail sector.

source: tech funnel

Nowadays, Machine learning is playing an important in the success of different sectors. we can talk about Healthcare, Finance, Manufacturing, Agriculture, now even in Education.

Retail is one of the sectors, which is getting huge benefits from machine learning and artificial intelligence.

for example:

Who doesn’t like scrolling through the home page of an e-commerce website just to have a look at the product recommendations section for them?

Well, nowadays, consumers even want to get notified on their smartphones about the latest offers available on their favorite products. Even if many of these consumers are indifferent, it skyrockets your chances of conversion since they’re being constantly reminded of their favorite products.

Amazon and Alibaba were one of the first e-commerce ventures to introduce an algorithm that improves the product recommendation process. John Bates, Senior Product Manager at Adobe, believes that by leveraging the power of Machine Learning and predictive analytics, brands can look beyond what consumers are looking for, and have them connect those dots for themselves about what they’re likely to want.

Amazon was one of the first to exploit the potential of artificial intelligence in the early 2000s, and 35 percent of the company’s sales were soon attributed to these AI innovations. Since then, AI technology has evolved at an astronomical rate. Artificial intelligence can serve retailers with smart recommendation engines, automate most processes, replace human labor for particular tasks, predict demand, and by doing these things increase overall productivity and revenue.

what AI can Bring to Retail??

If we want to see what AI can bring to Retail, we have some strong stats from the UK retailer survey. According to the survey Productivity and personalization will help the AI market reach $15.7 trillion by 2030. Moreover, The global market for AI in retail is currently worth $993.6 million and will grow to $5,034 million by 2022.

Retailers are using AI for Driving sales and anticipate demands, understanding consumer behavior, offer highly-accurate individualized promotions, Targeting consumer segments and Assess Existing competitions. which are giving them great success and result in high revenue.

AI benefits to Retail Business

According to the same survey, the Benefits of Artificial Intelligence for retail businesses worldwide in 2018.

So, we can see AI is helping retailers in saving cost, increased productivity. we can easily forecast the sales and needs of the customer.

Anticipate Customer behavior

businesses required to anticipate customer’s needs to innovate themself. The best innovators continuously think beyond the present to imagine and implement new products and services to serve customers better . Anticipating customers’ future needs provides an edge in business innovation. Steve Jobs highlights the value of anticipation:

According to him “You Can’t just ask customers what they want and then try to give that to them. By the time you get it built, they will want something new”. Steve jobs is really an inspiration for me, and he makes everything clear in a single quote. You simply cannot ask every time your customer about their need, you have to give them, what they like or love.

For example

Can you imagine a writer, speaker or film director who never anticipated their audience? The answer is No…

To determine what we should say, we have to anticipate our audiences. The best speakers, writers, moviemakers, and leaders are simply experts in anticipation. Expert communicators captivate audiences, write bestselling books and influence masses by anticipating their audience before they act. They begin with the audience’s reaction in mind

Why is Anticipation Customer behavior Important to BRAND GROWTH?

So, why brands should anticipate their customer’s behavior. There should be a strong reason behind every decision or action taken by an organization/brand. Here are some advantages of anticipation:

  • Anticipation precedes all action.
  • Impacts consumer decisions.
  • Anticipation is a source of customer value.
  • Anticipation can be a business’s competitive advantage.


We saw how Anticipating Customer behavior is an important factor in Retail success. And why different Retail Industries should start doing it for generating better and maximum revenue.

I saw this quote somewhere, and at the end, this is what we can conclude with:

Just because your strategy has worked up until now doesn’t mean that it will work in the future.”

You can also read a relative blog on Market Basket Analysis, which is an actual use case of Customer behavior anticipation.

Stay Tunes, happy learning 🙂

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Written by 

Shubham Goyal is a Data Scientist at Knoldus Inc. With this, he is an artificial intelligence researcher, interested in doing research on different domain problems and a regular contributor to society through blogs and webinars in machine learning and artificial intelligence. He had also written a few research papers on machine learning. Moreover, a conference speaker and an official author at Towards Data Science.