AI is slowly integrating into our lives, and in modern retail operations, artificial intelligence business solutions have a significant role to play. From chatbots that offer 24/7 customer support to augmented reality apps, AI offers a vast opportunity to the retail industry.
The AI market is anticipated to hit over $38.4 billion by 2025.
Let’s see how AI in Retail and Ecommerce Boosts Customer Service & Employee Productivity:
Personalized Recommendations with Machine Learning
Retail and eCommerce companies can leverage the power of AI/ML to provide finely tuned product recommendations to customers based on their interests, purchase history, etc.
Suggested and auto-complete search terms are a well-known implementation of AI/ML recommendations. Broader terms and synonyms make it easy for users to search for what they are looking for. It helps in improving user experience as users don’t have to scour an entire website. Apart from that, Chatbots are a great help for customers to get answers to their questions related to the business. Chatbots help your business to be online 24/7, and they significantly cut costs of hiring customer support executives, especially on the night shift.
Virtual Dressing Rooms
Virtual fitting rooms for glasses, jewelry, makeup, sneakers, etc., are a big hit among the users. Brands like Gap, Levis, and Old Navy have increased their online sales by 33% with the help of AI scanners. Virtual dressing rooms enhance the customer experience as they know what they are buying and how the dress will look on them. This also reduces the return rate drastically.
AI helps in providing an audit of goods in the retail supply chain and identifies pricing errors and out-of-stock items. It is especially beneficial in massive warehouses such as Amazon. AI-based smart shelves alert the staff about product shortages.
The advancements in AI/ML help in mining and analyzing voice data. It’s a great way to know what your customers are saying; actionable insights can help in improving customer experience and help businesses stay ahead of their competitors. With the help of AI, every customer conversation can be measured and scored in structured data that analyses emotion, sentiment, keywords, and trends.
Customers love retail shops that help them in the shopping process. With AI, customers can find what they are looking for in the store in the language of their choice.
Automating delivery robots and trucks will increase efficiency, allowing supply chains to operate autonomously. By linking AI with GPS tracking, improvements on routes can be made efficiently. In addition to that, the implementation of AI in inventory management results in a 32% cost reduction across all operations.
AI and ML can help in reducing the threat of retail fraud by ensuring transactions are legitimate and approved before posting. As per Gartner, organizations that use AI in their eCommerce platforms will improve their customer satisfaction by 25 percent, along with increased revenue and cost reductions. AI offers business efficiency improvements in the areas of fraud detection, price optimization, customer segmentation, etc., and it increases user experience with algorithms-powered content personalization and product recommendations.
Helps in Increasing Efficiency of Business Processes
AI helps in increasing the efficiency of business processes hence saving time and money. With the help of AI, your team can focus more on the most crucial processes and prioritize them accordingly.
Automated Employee Support
Streamlined support is important for employees as well. Good employee support is the foundation of providing efficient services to customers. By integrating AI, retail businesses can provide modern solutions to understand the context of the issues faced by every employee and provide them with a personalized solution tailored to their needs.
AI for Logistics and Delivery
AI can make payment systems intelligent; customers don’t have to interact with a traditional checkout. An example of AI in retail payment is Amazon Go; the brick and motor stores utilize deep learning and computer vision to provide customers with a check-out, less shopping experience.
Advanced Customer Loyalty Programs
AI-enhanced customer loyalty programs can make a huge difference in customer experience. With the help of AI, e-commerce companies can ensure that users see promotions and products that are relevant to them. With AI, companies can segment their users and target them as per their needs. It’s a great way to offer customers what they want and provide them with offers and loyalty programs accordingly.
The advancements in AI/ML help in mining and analyzing voice data. It’s a great way to know what your customers are saying; actionable insights can help in improving customer experience and help businesses stay ahead of their competitors. AI ML Services are already leveraging the power of AI to enhance customer experience. With the help of AI, every customer conversation can be measured and scored in structured data that analyses emotion, sentiment, keywords, and trends.
Sales and Demand Forecasting
Sales and demand forecasting helps a business understand market requirements and plan their products accordingly. As per the Mckinsey report, real-time customer analysis will continue to be an important aspect to be monitored as it helps us to know customer demand and shifts. AI has already been utilized to ensure companies get accurate sales and demand forecasting data.
Artificial intelligence development company are already improving the operations of retail and eCommerce businesses and providing them with innovative solutions to build better relationships with customers. Retail giants like Amazon, eBay, and Walmart are utilizing the next-gen solutions and reaping the benefits. Personalized experience, shopper management, inventory management, checkout-less sales, delivery optimization, intelligent pricing are some of the benefits of AI. It is a powerful tool that helps retailers and eCommerce businesses reduce costs, adapt to market changes quickly, and make data-driven decisions that benefit the business.
Diksha Sharma is known for her tremendous contribution as a marketer and writer who loves to share her views on topics covering upcoming technology and market trends—always looking forward to creating and sharing quality content that can withstand the competition. She is currently working as a Digital Marketing Rockstar with Moogle Labs, an AI/ML Services company based in Canada.