What does AI-driven Retail Look Like?

A long time ago, when some relevant movie studios like Marvel or Apple (Siri) released an in-fiction...

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Posted by Dave Food on Dec 13, 2018 12:10:47 PM
Dave Food

A long time ago, when some relevant movie studios like Marvel or Apple (Siri) released an in-fiction concept of an Artificial Intelligence (AI) assistant, we hardly believe it could happen in our daily-life world. Today, virtual assistants help users find information, remember appointments and errands, and even shop, for example; Google Home and Amazon’s Alexa will place orders on command.

Retailers are also using predictive algorithms and Machine Learning (ML) to suggest relevant products to consumers based on past purchases and other retrievable personal data or chatbots to help shoppers solve their specific needs. These innovations are transforming the way consumers can shop online. It is a much more AI-driven personalisation to improve the connection between products and customers which could have been invisible before.

There are three main subjects where AI offers retail growth: replenishment, complementary purchases, and predictive retail.

• Automated replenishment

When a customer buys a consumable product the retailer knows the customer will eventually exhaust the item. So, a Replenishment program is urgently required. Amazon implemented two customer-driven methods for replenishment: a Recurring Delivery option, which lets customers decide in advance how frequently they want their items to be replenished, and the Dash button, which enables customers to reorder with the touch of a button. For offer loyalty programs email is an easy solution to predict customers’ needs, reminding them that it’s time to top off their supply.

• Complementary purchases

Retailers are also using predictive algorithms and Machine Learning to suggest relevant products to consumers based on past purchases and other retrievable personal data, and chatbots that help shoppers solve their specific needs. Retailers can also offer complementary product suggestions, like providing maintenance and care products with purchases.

• Predictive retail

Predictive Retail is by far the most forward-thinking form of AI but at the same time the most susceptible to error. ML technology employs data already known about customer past searches, purchases, product preference and other details to customise the online experience and suggest the article it thinks could be the most likely customer choice. Variables can affect those forecast which could alter the whole suggestions, external variables as weather, holidays, trend and so on. And of course, these searches do not make it sure that future preference can change.

Some other possibilities AI and ML have.

These new retail technologies could examine your possible planning or calendar and offer directed advice grounded on specific schedules, personal likings, and buying history. To say it directly, AI will learn from past behaviour and other data inputs to know when you are running low on product.

An AI-personalisation alternative model makes suggestions using notions about how buyers learn about new products, which products they like, and which factors most influence them to buy. Brand and retailers need to understand some of the buyer’s patterns when purchasing. For example, if it is inclined to trends, specific colour or concern of the supply shortcomings.

CONCLUSIONS: Saving time and increasing loyalty are benefits your find in AI and Machine Learning and help brands anticipate and provide to customer needs. With all the data collected in AI and ML, retailers can grow its repeat customer base and create a more captivating and valuable product assortment, and at the same time can help the industry succeed in the face of competitive challenges, consumer anticipations, and a constantly-evolving panorama. Take advantage of AI and ML to stay at the top of your competitors!

 

Dave Food

 

Prophetic Technology

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