The retail industry is growing at an extremely rapid pace and the recent health crisis has only accelerated trends. In order to adapt to the ever-changing customer needs and build customer loyalty, retailers must provide memorable and meaningful experiences to their shoppers through personalized products and services.
This is where A.I. comes in – helping retailers have a clear vision for the future, by replacing intuition with intelligence and offering hyper-personalized experiences.
Using and Organizing Data
How are these bespoke experiences created? By leveraging the vast amount of data that businesses generate and process every day, and by providing intelligent recommendations powered by algorithms and machine learning.
Let’s think about it this way: enterprises like Retail chains, commercial spaces and public spaces spend hundreds of thousands of Euros in setting up CCTV infrastructure to monitor and records data 24×7. However, less than 0.01% of this data is currently used by these enterprises. The immense potential of this data can be unlocked by A.I. solutions that plug into the existing infrastructure effortlessly and help these companies increase sales and reduce costs and theft.
Optimizing Customer Experiences
Customers perceive queuing as a waste of time, which means that for companies – especially retail companies – long waiting times imply a risk of losing customers. According to a report conducted by Adyen, retailers are losing as much as $37.7 billion in potential sales due to this reason.
By monitoring and predicting the queue length at checkout counters with the help of A.I., businesses can significantly reduce wait-times, optimize customer experiences, and increase sales during high-load periods.
Security is essential for today’s retail industry. Retail theft or shrinkage (shoplifting, employee theft, and administrative errors) is a factor that influences all retail organizations and prevention is a key element. Studies show that with the help of A.I., combined with security management systems, companies can save billions of dollars.
Efficient Inventory Management
A business can’t sell what it doesn’t have on its shelves, right? The issue of SKU (items) out of stock on shelf is a burning one for most retailers, as it leads to missed sales opportunities and unhappy customers who leave empty-handed and choose to head to a competitor.
A.I. solutions help eliminate these replenishment problems, optimizing the in-store retail experience for consumers, as well as increasing the opportunities for higher sales.
Another area where retail A.I. can greatly contribute is in the way in which items are physically laid out in the store, through the analysis of customer count, visitor flows, and heat-maps.
Demographic profiles of customers as they walk into the store help retailers understand how their clients behave on their premises. This information helps retailers make informed decisions regarding what items to put next to each other, and in which order. This helps deliver a more efficient customer experience that translates to an increased revenues for the retailer.
In conclusion, using cutting-edge A.I. technology helps retail businesses embrace the ongoing change successfully, gain a competitive advantage, boost productivity, save time, and increase efficiency.
Delivering a personalized shopping experience at scale and meeting heightened consumer expectations is easier than ever before thanks to the real-time intelligence that A.I. solutions bring to the retail industry.