Retail is all about meeting customer demand. Your ability to meet their demands in the best way possible can only be navigated by your capacity to understand their behavior and current trends.
Artificial Intelligence can assist you in improving demand forecasting and make astute pricing decisions. This way you can optimize your product placement and connect with your customers by providing them the right product, at the right time, in the right place.
AI can be a daunting concept for many, especially those who are not tech savvy. I, sometimes, find many of my friends struggle with online purchases, and digital tools. So it is up to you to help them get better acquainted with technology through how-to videos, having adept customer care services and listening to their plights, among other things.
AI for you can be a game changer.
You might be wondering how? Apart from the prevalent idea that it will reduce labor cost, AI cannot be of much use, right? Wrong!
From 2013 to 2018, AI startups generated a profit of USD 1.8 billion in 374 deals, according to a report published by CS. Amazon is a prime example of how business leaders can accrue massive profits by using AI in the retail market.
Here are top 8 uses of Artificial Intelligence in Retail:
- No More Cashiers at Stores
- Chatbots Can Assist in Customer Services
- Artificial Intelligence in Price Adjustments and Price Predictions
- Artificial Intelligence can help in Managing Supply Chains and Logistics
- AI can Aid in Visual Search
- Giving Customers Access to Virtual Fitting Rooms
- Predicting Customer Behavior
- Aiding in Voice Search
No More Cashiers at Stores
Amazon has initiated cashier-free general stores. The individual can purchase anything with the help of the digitized carts. You can scan the product you are interested in purchasing, and the cart will show you its details such as weight and price.
The Amazon account will then take money for your purchase without you needing to interact with any physical forms of money. You reduce the cost of hiring cashiers and sales persons. Also, there won’t be any time wasted at the hands of the customers since they will be able to find everything about the product they need through their Artificially Intelligent grocery carts.
Chatbots Can Assist in Customer Services
Artificial Intelligent can be implemented in customer care services to provide a higher level of help to your customers. AI can also improve searching for the customer, send them notifications about new collections and suggest products to customers according to their needs and wants.
For instance, a customer who bought a blue top can be suggested a matching skirt or pair of pants by AI bots. Blueberry launched chatbots to help their prospective customers to navigate through their new collections.
Artificial Intelligence in Price Adjustments and Price Predictions
I can be used to assist businesses and brands in setting prices for their products or services. AI can assess the products, compare them with competition and set a reasonable price for your goods and suggest the likely outcomes of higher or lower prices for your goods.
The AI system will start by collecting information about related products from competitors, promotional activities and analyzing the market.
You can then present the customers with the optimal prices for your items and eventually boost sales. You can also launch an app where you provide customers a price for upcoming products. This feature can be a great addition for the travel and tourist industry as their prices fluctuate throughout the year. It will build customer loyalty by letting customers know beforehand how the price of a product changes overtime.
Artificial Intelligence can help in Managing Supply Chains and Logistics
One of the biggest problems brands face is mismanagement of supply chains. Leftover items and out of stock scenarios are a nightmare. The former results in waste, while the latter leads to customer dissatisfaction.
Artificial Intelligence in retail supply chains can calculate demand for a product by assessing the history of sales, location, weather, fads, trends, promotions and other relevant parameters. One of the biggest turn offs for me while shopping is not having a product available in my size, or liking.
AI can Aid in Visual Search
Powered by AI, Visual Search systems let the customers upload images of an item and find similar products on the basis of color, shape or patterns. Image recognition has been introduced by Google a few years ago, which lets users look for anything easily.
The IR technology used by American Eagle lets people get similar or same clothes, and also suggests how to style the particular item of clothing.
Giving Customers Access to Virtual Fitting Rooms
I find this one especially interesting. Virtual fitting rooms will save customers their time and help them find the perfect outfit in a matter of a few minutes. The AI program will scan you in a few seconds, and measure about 200K points of your body. Many high end brands like Levi’s Old Navy and Brooks Brothers have introduced this feature in their stores.
Predicting Customer Behavior
Machine learning and Artificial Intelligence platforms like Personali can predict customer behavior through behavioral economics. This way, your company can build an individual approach unique to each client. AI programs can analyze customer psychology and read their emotions to boost purchases.
Aiding in Voice Search
We are all familiar with Google Alexa, and iOS Siri. However, retail brands have expanded the use of voice search to provide customers the capability of asking and getting their wish fulfilled within minutes. You don’t have to type a thing to know the status of your item, or when it will reach your doorstep.
Walmart, Costco and Tesco have used this technology to assist their customers with their grocery shopping.
Conclusion
AI can be a game changer for your retail business and catapult its growth. You can stay relevant and surpass your competition through automated processes, better insight for your business and improve customer care and engagement by introducing Artificial Intelligence and Machine Learning based applications. Retail solutions such as visual search, voice search and chat-bots can transform your business dramatically. You can be a food, grocery, footwear or apparel store, or a service provider, innovations in Artificial Intelligence can lead to a better future for retail.
