Data in the retail industry is increasing exponentially in terms of volume, companies are leveraging these data for the best of their business. Users behavior, buying habit, profiles, interest etc Insights can help retailers to understand target audiences requirements and demands. Retailers need to adopt technologies powered by artificial intelligence (AI) that can make actionable decisions from the data to provide the exact thing at the exact time to every customer as per their expectations. AI is boon to many businesses especially retail industry which gathers tremendous data helping to create personalized shopping experiences.
- According to Capgemini’s 2018 survey of 400 retail executives worldwide; AI could save retailers as much as $340 billion annually by 2022 and 80% of the savings would be from AI.
- AI specialists speculate that the opportunities are endless.
- As per the market firm Tractica, AI will see a huge increase in global revenue from $643.7 million in 2016 to $36.8 billion by the year 2025.
How AI is transforming the retail industry?
1. Personalized Recommendations
With AI Retail industry companies are able to develop the ability to make hyper-granular behavioral profiles of each customer and their preferences based on search and shopping history and providing them personalized product recommendations.
2. Real-Time Communication
The IoT allows to stream data in real time which helps companies to announce instant offers through push notifications based on users geographical location which also persuades consumers to act promptly.
3. Increase in Sales
Retail companies have huge data of their customers these data are difficult for any business to drill down and analyze properly. Retail industry with use of AI algorithm data can be utilized in creating a targeted campaign based on customers’ previous purchases, search history, age, gender, etc to give a better experience to their customers which would result in more sales.
4. AI powered Chatbot
AI-powered chatbots engage with customers efficiently and handle millions of queries simultaneously. Current chatbot depends on keywords for responses but AI chatbots will answer more complex queries by analyzing them and provide shopping suggestions and instant support and will also help retail industry companies in creating a more targeted marketing campaign in real time. The main benefit of chatbots is that they can be available 24×7 which means prompt and personalized attention helping brands to gain customer loyalty.
5. Targeted Ads
AI can help retail industry companies with more detail report which is not easy for a common man and assist in creating a better marketing strategy. Integrating AI in marketing, retail companies can use the data and create more specific targeted ads.
6. Virtual Trial Rooms
With so many varieties user tend to get confused; to ease their experiences virtual rooms can be the best feature where they can try varieties of options in no time. Not only apparel companies even cosmetics brands can use virtual mirrors helping customers in selecting the perfect shade of foundation, lipstick, eyeshadow and more.
7. Intelligent Product Recognition
Through Intelligent product searches; customers can now take pictures of things they see in the real world and identify retailers through a simple search. The potential demand for image recognition is enormous and by 2020, 85% of customer interactions in retail will be managed by artificial intelligence.
8. Robotic Assistance
Retail Robots could be the future of the offline retail shops where they could answer customers basic questions, could be capable of making suggestions and doing everything a basic worker does.
Innovations are no doubt double-edged sword when used effectively can yield increased ROI. AI can be a blessing to many businesses especially retail industry helping people to focus on other aspects and create a more efficient process. Retailers have many choices on how to use AI in their marketing and sales strategies. Consumers are already loving the richer retail experience, with ease of accessibility, therefore, it is necessary for retail companies to understand the benefit of adopting AI for their retail industry business at earliest in order to increase profitability and retention rates.