There is no doubt that Artificial Intelligence (AI) has been making game-changing impacts in the business world. Today businesses, especially retailers, regardless of size and vertical, are increasingly ardent to build AI solutions. In fact, they need it requisitely as competition is skyrocketing and consumers are more attracted towards online offers.
A few weeks back, when FuGenX decided to add more services to its AI service portfolio, it conducted a series of deep researches across industry verticals to find which industries have more pain points that can be solved by our cutting-edge AI solutions. Expectedly, the retail was in the top of the list. Since they are a consumer-centric business, today retailers need to build more linear customer experiences that are mainly possible through personalized offerings.
How all these things can be achieved? Yes, artificial intelligence today has solutions for all the pain points of retailers, including solutions to improve in-store operations and workforce productivity.
6 Ways Artificial Intelligence Can Transform Retailers
Personal Shopping Assistants
Big data along with natural language interfaces and machine learning have been creating mammoth opportunities for retailers to understand what exactly customers are looking for, what works and what doesn’t. Personal shopping assistants powered by these technologies are used to create a near human interaction. They can be much quicker and accurate when it comes to assisting shoppers.
The fashion retailer North Face uses a platform and bot that helps customers on mobile find their preferred products when they are in the store. Other known bots in the retail industry today that are bringing huge benefits to their owners are Sephoras Chabot and the personal shopping assistant developed by Spring, an e-commerce company that connects retailers and shoppers. When needed to build such kind of apps, large firms always prefer the best mobile app development company or chatbot development company or AI development company who has a sound understanding of trending technologies.
Physical retailing is heavily staff-driven. Poor staff can be a reason to reduced sales and damaged brand image. AI-powered predictive modelling helps retailers eliminate this hassle. This gives them an ability to access historical data like footfalls, customer interactions, and approach shown towards the customers, so they can use this measure to optimize staff. The optimized staff can help gain greater sales, deliver improved customer experience and achieve higher customer retention rate.
Store Foot Print Optimization
Most retailers fall into ambiguity when they need to open a new store in a particular location, being unable to understand opportunities and challenges hidden in the location. But in the recent years, AI powered algorithms have been heavily used in this area to have a better understanding of the location. Algorithms give retailers an idea on which is the best location for their products or brand, or should that be opened or not in the intended area. This intelligence is gained from analyzing the historical data like demographics, the local market, distance from competitors, nearby events and current data like weather patterns. So retailers can easily measure the viability of their expansion planning in the desired location.
Optimization of Supply Chain
Supply chain management is one of the most important areas of retail that has a direct impact on the performance of any retail business. It is a well-known fact that excess inventory causes cost burden and stock outs can stimulate customers to look towards competitors. This is where AI-powered prescriptive demand models help retailers eliminate this pain point. In order to predict accurate demand and supply forecasting, prescriptive demand models regard past sales of different products, events, marketing campaigns, and seasonality etc. So retailers can easily optimize logistics and enable an effective use of operational funds.
Yes, AI has begun to change the face of the retail irrevocably throughout the retail value chain. So forward-thinking retailers are finding enormous opportunities to achieve a competitive edge, by transforming customer experience and in-store operations.
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