Artificial Intelligence in retail has grown exponentially and positively impacted several sectors. In addition, it manages to dictate trends according to the needs of each of these segments, creating true market differentials.
To better understand how it can influence retail, we prepared complete content with trends and practical examples. So if you want to know more, you better keep an eye out and follow all the information. Good reading!
What is Artificial Intelligence (AI)?
It is one of the great disruptive technologies that promise to dictate the pace of the market from now on. It has been developed since the 1960s, with the aim of replacing human activity, especially in quick and strategic analysis.
One of the simplest examples we have of AI is the calculator that, with the insertion of some data, performs calculations more precisely than the human brain. Today, however, we find this type of technological innovation applied to various purposes, such as customer relations, marketing, sales, and even the purchase of inputs.
How does it work in retail?
There are several applications of the Internet of Things in retail. Next, let’s check out the main ones.
Product History
One of the uses of AI in retail is precisely to optimize the management of information about the customer and his purchases, saving data about the products he has already purchased. This can be used strategically to create more accurate digital marketing actions and increase your conversion potential.
Imagine, for example, that a customer went to a furniture store and bought a wardrobe and a bed. The next customer bought the same thing and even added a headboard and wall mirror to the order. What does that mean? Is it possible to better explore the desire of consumers? Artificial Intelligence can help with that.
Customer Behavior
Artificial Intelligence is also great for identifying and recognizing patterns in customer behaviors. Thus, it is easier to find out when specific factors are influencing your consumers to abandon products in the virtual store cart, for example.
In the same way, there are internal statistics capable of pointing out which are the most recurrent combinations of products in your store. Perhaps, if you have a grocery store in a university district, sell more toilet paper associated with beers. But if you are in a familiar neighborhood, you may notice that the sale of bread is associated with that of diapers or sweets, for example.
Optimization of the purchasing process
Based on the patterns identified specifically in your store, you can optimize the buying process for your customers. If the software points out that, on average, a woman repurchases contraceptives and pads every 30 days, why not create a recurring purchase program, in which the order is closed automatically?
This same logic can be used, for example, to remove a product from the shelves that have been in decline in sales for months. So you can use projections to figure out when to stop restocking that item.
Stock Management
Speaking of inventory management, AI can also be used to quickly identify when a product is out of stock. This can often be done by a projection method. In this case, the technology creates a recurrence pattern for a product based on sales history. With this, you can project when the item will run out again.
With automation, orders can be redone without any employee performing the task, for example. This ensures that a particular item is never out of stock, thanks to the Artificial Intelligence survey, which is automatically adjusted each time a new product comes out.
What are the main AI trends in retail?
While some are still keeping an eye on how to implement Artificial Intelligence in retail, others are thinking about the trends that will dictate the pace of the market going forward. And it’s no wonder since many of these “trends” are already a reality in several places.
Today, we already have supermarket stores that have practically automated their entire operation. An Amazon unit, for example, allows customers to use a physical cart to move around the store picking up and returning products automatically calculated by technological devices. When passing through the check-out area, the value of purchases is credited directly from the user’s registration.
Now, imagine if the customer could receive product recommendations based on their cart choices while still walking around the store. Even better: receive exclusive offers to take items that are specifically relevant to him.
Use your imagination and extend this possibility to the most diverse segments of the market: games, clothing, electronics, cosmetics, and shoes. Thus, each store could become a source of incredible experiences.
Obviously, all this needs to be thought of within a design and highly technological strategies. But none of this is impossible and, with Artificial Intelligence in retail, it is getting closer to reality.
What are the benefits of AI for this industry?
Still not convinced of the importance of Artificial Intelligence in retail? So how about keeping track of some of its main benefits?
Best customer experience
The more efficient a business is internal, the more fluid the solutions it delivers to its end audience. For the consumer, it’s as if the company knew what he wanted, even before he wanted it. This qualifies the experience, increases satisfaction, and contributes to loyalty.
Greater agility and efficiency
Artificial Intelligence also refines internal processes, making each one more effective, reducing failures, and promoting agility. Thus, it is not necessary to wait long for the main activities of the company to be carried out.
Task automation
Speaking of agility, task automation is another advantage that does not go unnoticed. Without repeated functions, without bureaucracy, and without depending on the availability of a collaborator to release certain steps, deliveries happen much faster and more satisfactorily.
Gains in innovation and differentiation
With all this, the use of Cognitive Computing also contributes to a true competitive advantage in the market. In this way, without so much effort to make the operational part work, managers can focus on the core business, taking the company to a new level.
Considering all the tips and information we’ve brought you, you are certainly more aware of the relevance of using Artificial Intelligence in retail, aren’t you? So, now might be the time to start investing in a solution like this in your business!
