Artificial Intelligence Leads Retail Trends in 2019
Artificial intelligence is becoming more present in our daily lives, and this is especially true in the retail sector. Gartner included artificial intelligence on their list of the top strategic technology trends in 2019. According to the latest data from Capgemini, this tendency will continue over the next few years with retailers spending an estimated 7.3 million dollars annually on AI in 2022.
Artificial intelligence applications for retail are being developed while stores undergo the digitization process. The main objective is to improve the customer experience at points of sale and make interactions more profitable for retailers. AI solutions provide customer-centric information, help retailers optimize inventory management and process data that improves marketing strategies.
The benefits of artificial intelligence in retail are countless. Here are some of the most important ones.
Benefits for customers
Analyze massive amounts of in-store customer data collected in real time, anonymously and respecting privacy. Demographic and behavioral data can be used to provide optimized information and product recommendations for each customer based on the time of day and their preferences. This brings the customer experience to the next level.
- Optimized communication
Share information that will be interesting to different customer profiles at the right moment and on the right channel to improve their experience and brand engagement. Chatbots are being developed for physical points of sale. This technology works successfully online, but is also a powerful customer service tool that can be used as a personal shopping assistant.
Predict which products customers will want by analyzing their habits and preferences. AI relates the purchase of certain products with different customer profiles, allowing it to recommend specific products for each customer. Since artificial intelligence has very specific data on the target audience, they can predict which products will be in highest demand, improving the store inventory.
Benefits for retailers
- Automated marketing actions
Optimize store operations by making predictive and automated decisions. AI harmoniously controls and analyzes content impact so that messages and playlists are automatically directed to the correct audience, at the right time and place, and on the right channel. This optimizes advertising investments.
- Optimized inventory management
Analyze internal company data to automate management and logistic processes. AI can determine which products are best for each customer profile and promote them according to external information. It also helps decide which products perform better or worse to include or eliminate them from store inventory. AI will automatically promote over-stocked products to optimize the inventory investment and improve store operations. Artificial intelligence can also determine which areas in a store need more attention and will boost sales for the products there.
- Increased ROI
Optimize store operations by analyzing data related to marketing investments. AI can make automated and predictive decisions based on data as opposed to the intuitive decisions most retailers make. It harmoniously monitors content, automatically analyzes in-store data, and helps retailers increase their ROI.
Beabloo has developed two AI-based solutions for brands and retailers that create intelligent decision-making systems which improve the customer experience and provide better service. These solutions are:
An AI-driven digital signage project for physical stores. Minerva analyzes the audience and campaign attribution in real time to optimize the planning and objectives of digital signage campaigns. It analyzes which content is most attractive for customers and activates digital signage systems to show the most desired content at the right place and time. Minerva makes predictive and automated decisions, meaning retailers can save on their marketing campaigns.
A virtual assistant for customers in physical stores. Halo is an AI-supported voice assistant that lets retailers interact with customers in their store. From a digital signage point, Halo can talk to people in a friendly and personalized way. Customers can ask where to find products or stores, what the latest offers are, or for event recommendations.
Artificial intelligence helps retailers improve customer service and logistics in their stores. It also improves the customer experience, encouraging brand loyalty and engagement. There are many areas of the retail sector that artificial intelligence can improve, such as customer management, marketing, and commercial activity development. Retailers must take advantage of AI to analyze their stores and make optimized business decisions quickly and automatically.