Tuck Business School | Tuck faculty predictions for 2022

Marketing, statistical modeling, statistical machine learning, predictive analysis

Prediction

“In 2022, traditional brick-and-mortar businesses will likely continue to enter e-commerce. Some evidence for this trend comes from the pandemic experience when traditional retailers like Walmart stepped up their online presence. However, even in an increasingly digital post – in the pandemic world, offline storefronts will continue to offer communicative and “touch and feel” experiences for brands. Thus, expanding the market for digitally native businesses, In this sense, traditional businesses with established retail formats will have an advantage and may be stronger than digital-native DTC businesses if they can integrate their offline model to online channels, then adopt an omnichannel strategy.

One example is the success of the omnichannel hybrid model adopted by the Turkish firm Arçelik, which has perfectly integrated its DTC website into its dealer network. Another key trend will be the increased use of predictive algorithms and AI / ML (machine learning) to manage price, inventory and demand. Again, businesses that have both an online and offline presence will benefit the most from these algorithms, as they can use information about online customer behavior to predict inventory and store sales. However, algorithms can be overused. Humans will need to integrate ethics into algorithmically adjusted pricing and market strategies. “

Comments are closed.