(WHAT TO EXPECT FROM AI AND RETAILERS)
April 26, 2023
Hello everyone,
Artificial Intelligence will transform the retailing industry.
Retail operations may undergo significant change over the next decade as retailers incorporate AI-powered technologies into storefronts and warehouses to increase efficiency and enhance personalization across various sales and marketing channels.
What this means is that the days of mass marketing may be over.
The future of marketing will be all about personalization. And AI will be a big part of that.
AI will enable businesses to identify customers’ needs based on their previous purchases and browsing patterns and create personalized marketing.
So, if you are gift shopping for a special someone and are looking for swimwear, for example, you may just get those types of the latest swimwear options landing in your inbox.
And the best part of all this AI revolution is that you may not have to wait in lines in a store again. Shoppers may be able to go in and out of stores without having to wait online and check out. Warehouse operations can be streamlined and merchandise placement in stores can be optimized. E-commerce should also see a boost with AI driving more retail dollars online.
Amazon is obviously a big winner with the advancements in AI.
When you shop online with Amazon, especially for groceries, you already are offered suggested items you may like, if they are not already in your cart (as you have purchased them previously).
Even the type of language each company uses for each customer will be different. AI will be able to generate a language that resonates with specific individuals and drive them to act.
So, for example, you click on a dress or suit you want to check out in detail online. AI generates that you have “great taste” and a “sense of style”. This all speaks to our sense of self and targets our human emotions.
Eventually AI can help retailers pitch tailored products to each potential customer based on their prior history. That not only can help drive sales, but it can also actually lower costs as well.
Furthermore, improve customization can cut down on waste because shoppers will see items that are a better fit or are closer to what the person was seeking.
This all makes perfect sense. Imagine the efficiency and savings. When you think of all the apparel, footwear and accessories that were returned because they didn’t fit or were unsuitable, this customization is a win-win situation.
Machine learning may also help reimagine how companies sell their merchandise inside their bricks and mortar stores. Machine learning analyses data and identifies patterns, which attempts to imitate how the brain imitates how the brain processes information. Furthermore, ML can identify and track stock-keeping units and can therefore help facilitate automated in-store inventory management and autonomous checkout processes. A 1% improvement in inventory efficiencies can be worth millions of dollars.
Customer service will also benefit from the revolution. Company teams will use AI-enabled chatbots, virtual assistants and virtual idols, as well as text, voice and other applications to improve the customer’s experience.
It will be trial and error for many companies as they work out how best to use AI to add to their bottom line.
Happy mid-week.
Cheers,
Jacque
