How Retailers can leverage the benefits of Artificial Intelligence

By Smita Kumari |Email | Jun 8, 2018 | 11490 Views

The retailers are investing much in the technologies like AI, big data analytics, block chain etc. the growing investment is featured by wide application of AI and related technologies to unleash its benefits to boost sales, improve operational efficiency, enhance customer relationship, offer personalized customer experience etc.

The development in machine learning and deep learning algorithm is a diving force for the adoption of AI in retail industry. The adoption of AI is also driven by increasing online shopping and customer engagement with mobile devices and internet.

The implementation of artificial intelligence is changing the product and service cycle from procurement to inventory management to customer service and support. Retailers are using these technologies as a competitive weapon to differentiate themselves with their competitor.

Use-cases where AI can be implemented
  • Sales and CRM
In japan, a pepper robot is used as a customer service greeter that interact with customers and perceive human emotions. With this, retailers in japan has experienced increase time duration of customer interaction and footfall as well, in turn increase in sales revenue.
A software is designed to automate sales named Conversica Sales assistance. This AI assistance act as sales representative, identifies sales opportunities and ensures high engagement rate. These virtual assistant helps in lead generation and facilitates cross selling.
Companies are using robots as front line to serve customer where customer can interact with them by touching on the screen and it can help them to locate products which customers are looking for. 

  • Operational efficiency
With the AI, robotics and automation, retailers can reduce their labour cost and ensure operational efficiency. AI virtual assistance, big data analytics for example Starbucks gas began to replace its staff with friendly robot to serve the customers.

  • Chatbots
Using the big data available, retailers can convert into web shops where AI- chatbot will use this information to customized customer shopping experience, recommend products, handle their queries etc. these web shops can provide targeted marketing campaign to the audience and convert them into customer. So, integrating AI in marketing and advertising, retailers can exploit these data to enhance customer experience and retain their customer. 

  • Gesture recognition
With the help of gesture recognition of shoppers, computer helps customer to fund out dresses and matching accessories with the help of digital catalog without shifting through racks in the store. This also provide recommendation and helps in personalized decision.
Also, AI enables consumer to build infinite number of look books of their outfits they put together. The look books offer shoppers with fun and interactive experience besides creating brand awareness.

  • Virtual mirror
Virtual mirror which is based on AI technology helps consumer to try different dresses and see what suits them better without changing their existing clothes. Also, they can try different accessories with the outfits to make more informed decision. Cosmetics companies are exploiting the benefits of virtual mirror to offer their customer delight experience where customer can see how different shed of lipstick, foundation, eye shadow will look their face in the virtual mirror.

So, with the help of AI retailers are changing the way customer interact at different point on the store or online.  There are many other ways where retailers can implement artificial intelligence such as logistics and supply chain management, inventory management etc. with the advancement in AI, its scope of applicability in different use cases increases.

Source: HOB