It is common knowledge that data analytics is nowadays indispensable for any company that wants to grow, especially retail businesses that are nowadays facing increased competition.
For decades, traditional analytics and marketing strategies have worked perfectly well for the retail industry when it comes to sifting through data.
However, artificial intelligence (AI) and machine learning (ML) have introduced a whole new level of data processing that leads to a much deeper understanding of customer behavior, and therefore improves business decision-making.
With consumer behavior analytics in physical spaces, retailers have the opportunity to improve shop performance and boost the productivity of their businesses. However, to get the most value from the data collected, it is vital to harness the power of AI.
In this article, we will explore the opportunities that artificial intelligence can offer retailers to improve and optimize the shopping experience for their customers.
Let ‘s get started!
What is Artificial Intelligence and how does it work?
Artificial intelligence is a term that is used in many industries, but many people do not fully understand what it means. When we say AI, we mean a range of technologies, including machine learning and predictive analytics, that can collect, process and analyze large amounts of data, and use that information to predict, forecast, inform and help retailers generate accurate data for business decisions.
These technologies can act autonomously, using advanced AI analytics capabilities to turn raw data collected from IoT and other sources into actionable information.
AI in retail also uses behavioral analytics and customer intelligence to gain valuable insights into different market demographics and improve many different touch points in the customer service business sector.
Main uses and benefits of AI in retailing
- Cost reductions in products and services as AI transforms the workforce. While routine tasks are likely to be automated, AI will also support and improve increasingly demanding work. The implementation of AI-based algorithms and systems will help optimize task scheduling, tracking and route planning for deliveries, among other tasks.
- More effective promotion and merchandising at the point of sale. Artificial intelligence will drive marketing and sales planning, helping to segment customers, generate personalized content and create real-time offers and promotions.
- Improving the in-store customer shopping experience. Some of the most valuable benefits of AI are found in the shop itself. Retailers can increase sales, drive higher conversion rates and order values through personalized AI-based messages displayed across in-store audio, visual and mobile devices. For example, Ladorian’s customers leverage the power of our prime time algorithm to make personalized in-store recommendations.
Personalized communication in physical shops
Today, from e-commerce start-ups to the biggest retail powerhouses, AI is an essential investment that benefits both the shop and its customers.
Companies can optimize pricing and advertising both online and offline using massive data.
Retailers can offer personalized suggestions and improve the shopping experience of their potential customers by focusing on consumer data acquisition. In this way, thanks to artificial intelligence, the retailer can increase sales.
Now more than ever, retailers need to focus their efforts on creating exciting experiences to generate continued interest in their visitors.
We must be able to offer consumers delightful services and experiences. By integrating predictive analytics to gather more market intelligence, retailers can lead change through data and technological innovation.
By engaging consumers in the physical shop, we can leverage this competitive advantage through personalized, relevant and meaningful messages, giving customers what they really care about.
To achieve this, Ladorian proposes the contextualisation of data in real time and the creation of anonymous customer profiles to impact only the target audience in a much more relevant way, reducing advertising saturation and improving the shopping experience.
Are you ready to improve your company’s communication and take advantage of the new sales opportunities generated in your business?
Contact our sales team and request a free consultation.