AI Applications Transforming Retail Business: 5 Must-Know Examples
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5 Applications of AI that can and will transform Retail Business
Artificial Intelligence is mainstreaming across business platforms, changing business policies, decision-making, resource management and much more, Retail industry is also seeing a wave of Artificial Intelligence overwhelming the functioning of the industry, with giants like Amazon and Walmart are already leading the influx of Artificial Intelligence in their processes, the offline and small-time online retailers are playing the catch-up game to stay in this business.
The traditional methods of customer engagement may not work for the generation with the attention span of fruit flies, the customers these days expect a more personal shopping experience, they expect tailored recommendations, the retailers will have to be smart and strategic to stay in business.
The following actual application of Artificial Intelligence is already changing the retails business and more retailers in the coming days should and will be adopting them.
It is a widely known fact that Excellent customer service is the key to the success of any business, but the means of engaging the customer and marketing products kept changing with time. With AI the retailer now has the opportunity to provide more personal customer experience by marketing their products based on the customer's search habits and purchase history. A retailer can increase the possibility of a potential sale by multiple folds. A customer who walks/scrolls into a store/webshop and gets what he wants without hassle is happy.
Trying to sell a chicken burger to vegetarians is a waste of time, effort and resources. It is all about selling the right product to the right customer, Artificial Intelligence algorithms can help the retailers identify the target market, retailers can run targeted marketing campaigns using Artificial Intelligence algorithms, customer-specific ads can be created based on gender, location, preferences, search history and much more. It leads to a high conversion rate and improved customer retention.
Minimum Advertised Price (MAP) Monitoring
MAP is the lowest price at which a retailer can advertise a product for sale, and this does not refer to the lowest price at which they can sell the product for in their store but the lowest price at which they can advertise.
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For example, for a pair of sneakers with a MAP of $299 a retailer posts an ad for the same pair with a price tag of $199, this creates an impression that the MAP of $299 is inflated or too high and no one will ever buy it again at $299, this cause brand erosion in the eyes of the customer, in short, its bad for business. Thus, it becomes important to prevent retailers from selling products below MAP. Artificial Intelligence can help brands real-time track and prevent the violation of MAP Pricing.
Customer Data Analysis
Artificial Intelligence can help retailers in the accumulation and management of the customer data that can be used to run targeted marketing campaigns and provide personalized recommendations. The data can tell the retailer about the likes and preferences of the customer, thus, can provide a more engaging shopping experience. Based on past data the retailer can predict how well a product or campaign will work, a retailer can make better decisions.
Virtual Trial Rooms
Maybe the most tiring part of the shopping experience is the multiple trials one has to do before finding the dress of the right fit and match. Virtual Trial Rooms are a reality, Artificial Intelligence makes it possible for customers to try different dresses to rent or buy without wearing them. For a customer to be able to do this exercise while sitting on a couch in the comforts of their home can be mutually rewarding for the customer and the retailer in separate ways.
Artificial Intelligence in the retail business is the reality that retailers will have to accept and embrace. Better customer experience and retention, a better realization of customer data, finding the target market and selling the right products to the right customer and much more are the rewards of adopting artificial intelligence in the retail business and all retailers have to do is make this technological shift.
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