Why should a retail business leader care about AI ?
The pandemic has left retailers with a major challenge: how to turn one-time shoppers into brand loyalists. Conversion rate, customer churn, and customer acquisition costs are all key concerns for businesses nowadays. In order to survive, retail businesses need happy satisfied customers
The new lock-down restrictions are making it hard for customers to get a feel of the product before they buy it. This is causing a higher return rate for e-commerce businesses because people are not able to get a feel for product that they buy. Employing and training staff to cater to all the needs of the customers in a brick and mortar set up can be challenging
Retail business offering same products for all customers without customization lose their attention because it does not satisfy the customer intent and interest to purchase. One size fits all does not work for retail business that is looking to grow. Taking the right products to the right customer at the right time is a business challenge. Business often lose their customers at this stage due to inadequate search results
What are the benefits of using AI in retail ?
In order to maintain a happy satisfied customer base, a retail business needs to make use of data pertaining to sales records, customer and inventory in an effective manner. Retail data analytics will lead to improved sales, optimised discount plans and reduced operational costs. Retail business can maximize their profits by margin of more than 25% with dynamic pricing strategies
Reimaging customer service
In order to reimagine customer services, AI tools like chatbots, AR virtualisations and audio response systems come handy. The automation possibilities that AI tools bring about will allow for the much needed cost optimisation outcomes. Shopify data reports that the conversion rate of brands with AR content is 97% more than the brands without it
Reinventing new outcomes
Increased customer retention and loyalty, which comes as customers know they can find products more easily. Personalized interactions from a recommendation engine show your customer that he or she is valued as an individual, in turn, can convert them into regular buyers boosting our customer base. Product recommendations account for 35% of amazon’s sales. Netflix makes 75% of its sales from recommending movies and shows to its customers.
What is our AI tranformation process ?
Interactivity is a strategy that aims to improve user experience by providing them with choice, control, and variety. Interactive elements on websites and apps allow users to engage in the process of discovery. This improves the buying cycle and quickens the product purchase cycle for each consumer. Interactive elements also make it easier for people to find products they like. Natural voice search and interactive chatbots are examples of this strategy
Personalization is a technique which helps to offer a personalized virtual shopping experience. It facilitates the understanding of the product in a quicker manner, making it more interesting. Personalisation is one of the mechanisms to provide the buyer-centric virtual shopping experience for each individual customer. The objective is to present a different virtual store catering to the needs of each buyer. Personalization is the future for both retail chain shops and e-commerce
This strategy starts with data, leads to greater insights and understanding of the past performance, which in turn helps in better planning and optimisation of the product line. It is particularly beneficial for retailers to take the initiative to understand their customers better. Retailers that use this strategy will make more informed decisions about product pricing, marketing, and promotions. To see a return on investment, it is important to use these data analytics correctly
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