Powerful AI Uses to Increase Your Retail Revenue
The impact of the pandemic has shifted the way people shop. Most customers are opting for mindful shopping as customers are still recovering from the financial crisis. They intend to focus on the essentials, cutting back on extravagant categories. The more this trend evolves, the greater will be the usage of Artificial Intelligence (AI) in retail. As, AI helps retailers improve customer experience, make pricing decisions, and optimize product placement. As a result, customers connect with the correct products, in the correct place, at the correct time.
A recent report found 74% of the AI/Machine learning technology used in retail targets back-end operations, while only 26% directly interacts with customers. Yet, according to IBM, intelligent automation has the greatest impact in retail when focused on improving the customer experience
As you read the article, you’ll explore more applications of AI in enhancing business performance and customer experience.
AI: Connection Between Customer & Brand
The eCommerce wave has swept over the traditional brick-and-mortar retail brands. Now branded quality clothes are available at the click of buttons. In fact, the onset of AI in e-commerce revolutionized the shopping experience for their customers. To illustrate, digital dressing rooms are being launched to create a real experience for the customer. These rooms are equipped with AI mirrors, which not only lets the customer view his/her reflection but also get suggestions on similar products. It’s like you can step inside the app and roam around trying new clothes by browsing into the suggestions category. This experience overcomes the disadvantage of not being able to provide customer engagement in shopping virtually.
Another pitfall of virtual shopping is that customers are unable to find a perfectly fitted dress. Hence, retailers are adding AI in their strategy to decrease inconsistencies in the return process by planning a highly personalized and flexible size chart. This allows customers to choose clothes as per their preferences and size.
Automating Price Regulation Strategies
Have you ever wondered how retailers set prices for their products? Setting the price for a product isn’t simple math. It depends on a variety of factors like production and business costs, revenue goals, and competitor pricing. In fact, AI has a lot to offer while leaders are planning on developing pricing strategies. AI helps retailers visualize multiple pricing strategies by analyzing the transactional data in a faster manner. The AI system investigates and interprets the statistics according to demand, seasonal trends, characteristics, customer choices, the release date of new models of the same items, etc.
In conclusion, retailers are adopting digitization on the go after the pandemic. Since the sudden shift, it may be critical to retain current customers and capture next-generation loyalty. Hence to bridge the gap between customer experience and automation, deep personalization is the best way ahead. Use cases like digital dressing rooms and analyzing the previous transactional data are some of the ways to retain and attract customers to eventually enhance retail revenue.