AI has made its contribution felt in many different sectors of industry. According to studies, the retail industries all over the world are either experimenting with AI or are planning to use AI to improve their operations. AI can help companies to understand customers, provide accurate demographic data, enhance customer service leading to developing products which satisfy the customer and increase sales. Retailers, who have to compete with online shopping, have turned to AI. Let’s see how AI is going to revolutionize the retail sector:
Retailers can increase sales if they have the correct information about the buying habits of customers. To track customer data over a period of time would take a lot of money, manpower, and resources. AI and Big Data’s predictive analysis can provide retailers information about customer choices and buying habits. This can help them to create ads that can target customers based on their buying behaviour. A recent study found that targeted ads had a whopping 670% more click-through success than ads that were not based on shopping behaviour.
Machine generated algorithms have been used by retail giants to predict customer demand and sales for many years now. However, recently, more retailers are using AI to help in predicting sales. AI would be a massive help to retailers in predicting the correct prices that would drive the sales by appealing to consumers. AI would also be able to recommend which products should be stocked, thus leading to better sales.
Creating Augmented Reality (AR) shopping experience
Customers these days treat their shopping experience as more than shopping. They are much more discerning about their choices. Online retailers use AR to let customers know how the product will look in their chosen environments, thereby creating a personalized experience. Major shoe companies have apps that help people to see how shoes would look on them by allowing them to try them out virtually. Similarly, AR can be used by retail houses to see how the in-store product will look on them, just by using their phone and AR. The AR screen will display the price and other relevant information.
Marketing with AR
The way marketing in stores, or print and electronic media is conducted would be revolutionized. There might be intelligent AR-driven assistants to guide the customers through the process of purchasing a product. Various stores would be able to create effective marketing strategies based on the AR analysis of previous and current customers by determining their choices, etc. This would lead to meaningful, personalized shopping experiences and there would be a huge rate of conversion.
Challenges the retail sector is facing
A large number of high street shops closed down in the UK as they could not compete with the online retailers. This boosted the retailers’ interest in evolving technologies such as the AI. Retailers are now using AI to analyze their data, make accurate sales forecasts and create a better digital as well as a physical shopping experience.
Using AI, the retail store may be completely transformed. Human interaction is what separates brick and mortar stores from online ones, and many retailers want to retain that. But shoppers’ experience inside the store would be enhanced with the help of psychometric tests, innovative displays and 3D modelling of products.
AI makes inroads into India’s retail scene
Indian retailers are looking at AI in order to survive and thrive. Retailers are using AI to analyze data and get an accurate picture of every customer. This would give them an idea of personal preferences and create a more personalized shopping experience. A company called Verihelp has developed a kiosk that would identify customers who have shopped earlier in the store by using AI technology.
As AI continuously analyses and learns customer behaviour, Indian retailers can optimize their communication with the customer. AI goes beyond data collection and helps the retailers perfect the behind-the-scenes marketing strategies.
To thrive in a world that now shops more and more with just a few clicks, retail stores have to come up with innovative ideas, faster predictions, and better product delivery systems. AI can completely transform the physical selling experience and help retailers stay relevant in an automated world.