Artificial intelligence is a term thrown around in many industries, but many people don't fully grasp what it means. When we say AI, we mean a range of technologies, including machine learning and predictive analytics, that collect, process, and analyze troves of data and use that information to predict, predict, inform and help retailers make accurate, data-driven decisions. Drive business decisions.
These technologies can also work autonomously, using advanced AI analytics capabilities to turn raw data collected from IoT and other sources into actionable insights. AI in retail also uses behavioral analytics and customer intelligence to gather valuable insights about different market demographics and improve many different touchpoints in the customer service arena of a business.
From this article, you will learn how retailers can benefit from AI. All the technologies that will be described already exist. Businesses that were able to integrate them earlier than their competitors made a lot of money from them.
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1. Reduction of costs
Stores are no longer required to employ human cashiers. When you take something off the shelf, the AI takes a note. Robotization of stores enables retailers to achieve the following goals:
Reduce queues
Reduce the number of human employees
Save on operational costs
However, human crew members will not become redundant. They have to monitor the AI.
2. Customer service
Chatbots can take care of customer service. Here are some examples of what AI chatbots can do:
Answer the questions
Inform about discounts
Refine search
Send notifications about new collections
Suggest similar or matching products
Collect feedback
Analyze the history of previous communications
Chatbots can learn from previous dialogues they have with each customer and personalize their communication strategy for each person.
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3. In-store assistance
Users do not need to ask human staff to provide additional information about products. Retailers can replace paper price tags with smart shelf tags that provide descriptions of all items for sale. Smart shelf tags can also show video ads and inform consumers about promotions.
When shopping abroad, consumers will be able to conduct a search in their native language.
4. Price formulation
To determine the best price for each product, the AI collects the following types of information:
Prices of other products
Promotional activities
Sales statistics
Based on this data, AI can generate different pricing strategies for the same commodity. A retailer can test these strategies and define the best one.
5. Price projection
To estimate the cost of a product, AI can analyze the following parameters:
demand
Seasonal trends
Features
Release date of new models of the same item
The price estimation feature helps you to increase customer loyalty.
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6. Supply chain management
Every year, retailers from all over the world lose approximately $1.1 trillion due to errors in supply chain management and logistics. Some products are out of stock when consumers need them the most, while others expire before anyone buys them. AI can calculate the demand for a particular product by considering the following factors:
Sales History
position
the weather
trends
Promoted
AI can suggest when and how many units of a retailer's product to order.
7. Product classification
This technology is useful for supermarkets, marketplaces, and other types of businesses that offer products from different manufacturers and vendors. A solution based on machine learning automation (ML) can tag objects and sort them into different categories. It can process around 1000 requests per second.
When a user starts searching for a particular product, they can find it quickly and with minimal effort. A seller can upload a picture of the product they want to sell and machine learning retail software with computer vision will identify, categorize and suggest the right price for it.
8. Visual search
While searching for a particular product, the user can upload its image into the AI-powered solution. The solution refers to items of similar shapes, colors, or patterns. Visual search technology has over 90% accuracy and greatly increases customer satisfaction.
9. Voice Search
27% of people worldwide use voice search on mobile. 52% of them prefer this technology over websites and mobile apps. Retailers are also starting to incorporate voice search technology into their workflows. A user can name the desired item to purchase it.
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10. Virtual trial rooms
This technology is indispensable for companies that produce and sell clothes, shoes, or accessories. Consumers don't have to try to figure out which one is the best fit among dozens of items. A virtual fitting kiosk can scan their bodies in less than a minute and measure 200,000 points. Based on these measurements, it can suggest the items that look best on the customer's body.
11. Customer satisfaction tracing
Here's an example of how this technique works:
A retailer introduces a facial recognition system in its stores
The system detects the mood of customers as they move around the store
At each checkout lane, cameras are installed
If the system detects that a customer is irritated at the end of the shopping process, a store representative will talk to them.
12. Customer Behavior Reference
During the shopping process, each consumer expresses emotions and establishes behavioral patterns. AI analyzes this information and comes up with suggestions that motivate the person to make more purchases. The shopping process is highly personalized. Each user can see only promotional offers that are likely to appeal to them. This is a very effective way to drive sales.
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Takeaway
Retailers are always looking for ways to improve the performance of their stores. Artificial Intelligence Services (AI) have the potential to help retailers with footfall analytics, store occupancy, conversion rate analytics, and more. With AI, retailers can make better decisions about which products to sell in a given location and how much to charge for them.
This helps them to optimize their inventory, and increase revenue and profits. If you're looking to make your business stand out through AI, Retail's AI-based people counting, live occupancy monitoring system, and accurate people counting products are designed to help retailers increase their sales by helping them better understand their customer behavior.
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