Personalized retail with AI is redefining customer shopping trends. Apart from personalizationOpens a new window , AI is helping deliver enhanced customer experiences by making better product suggestions, enabling faster checkouts, and facilitating more convenient in-person shopping. Artificial intelligence in customer service helps to understand customer concerns and expedite related processes. Let’s see how AI is transforming retail personalization and customer experience.
So, what is Artificial Intelligence?
Artificial intelligenceOpens a new window (AI) is machine intelligence that, like humans, learns from data and trial and error. It is a simulation of human intelligence that has the skills to solve problems, give and take commands, and automate multiple tasks for humans.
Some artificial intelligence examples include Amazon AI services, IBM Watson AssistantOpens a new window , Microsoft Cognitive ServicesOpens a new window and Google AIOpens a new window services.
According to Ryan Rozich, Vice President, OneSpotOpens a new window :
AI involves machine learning algorithms that extract the most useful information from data in order to more efficiently, accurately and often cost-effectively perform a less exciting task traditionally handled by humans.
Wait, but why AI? Does AI have an impact on the bigger picture? Let’s find out.
Here are four ways we see AI personalizing the retail industry and therefore transforming the customer experienceOpens a new window (CX).
1. Anticipating Customer Expectations
There is no better way of delivering amplified experiences than by anticipating customers’ expectations, and giving them what they want — their favorite products and brands, at the right time, and the right place.
Consider this scenario. Before making an eventual purchase, a customer does thorough research — checking for reviews, ratings, or trying out a product. Artificial intelligence can use the customer’s search data or browsing history, social network interactions, physical store visits, etc. to gather insights and anticipate their needs. Retailers (online and brick and mortar storesOpens a new window ) can therefore easily track what’s in stock and curate better product collections to craft efficient shopping experiences.
Here’s how some brands are trying to meet customers’ expectations in their retail stores.
- Curating Select Products
Retail giant AmazonOpens a new window has come up with the concept of the Amazon 4-star Opens a new window retail store. Products that have received a multitude of 4-star ratings will be offered in this physical store. Amazon will use its product recommendation engine to identify trending products and customers’ favorites and bring them to a brick and mortar setting. This is a profitable shortcut to give customers what they already want.
- Retail as a Service
Many customers try out a product in the store and eventually purchase it online. This trend was initially feared by retailers, but new retailers such as b8taOpens a new window have embraced the showroom-only concept. Using AI-gathered data for personalized targeting, these concept stores offer flexibility to companies to showcase their bestselling (or popular) products in the physical stores for customers to try. This not only simplifies the shopping experience, but also reduces product returns, and saves the companies from investing in full-fledged retail stores.
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Also Read: 5 Retail Marketing Myths to Dispel In 2019Opens a new window
2. Enriching In-Store Experiences
Retail stores are where customers get to explore, try out, and experience the product they are buying. If you can create heightened in-store shopping experiences, it will increase footfalls and customers will keep coming back for more.
Here are four ways AI can help enrich in-store experiences:
i. Navigation while Shopping
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AI enabled robots or kiosks can now use natural language voice commands or touch screen interfaces to help customers locate products in the store.
ii. Virtual Shopping Assistants
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Many shoppers prefer to shop without an assistant hovering over them, but sometimes they need assistance in locating the right fit, a specific color or a brand, etc. AI-driven virtual assistants can answer customer queries and make data-driven suggestions, whenever customers need them. AI can help cultivate product recommendations using information from a customer’s profile, shopping history, search queries, etc.
iii. AI-driven AR
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Many retail stores offer virtual trial rooms, make-up or product apps, which use AI-driven Augmented Reality interfaces to let customers test products without physically trying them on. This aids purchase decision and enhances the customer experience, as the customer can escape the buy-try-return cycle.
iv. Smart Checkouts
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Companies like SmartCartOpens a new window have invented shopping carts with cameras that can automatically tally up user purchases, prepare an order, and enable payments through a mobile device. Amazon Go also offers a similar shopping experience for grocery, staples, and meals. You can pick up items from Amazon GoOpens a new window stores and ‘just-walk-out‘ from the store – the order will be charged to your Amazon account.
Reduced friction, no queues, and checkouts will save the customer time and amplify the customer experience. It’s the ultimate in convenience!
Also Read: 3 Ways AR is Digitally Transforming Retail Customer Experience in 2019Opens a new window
3. Personalized Recommendations
The tech-savvy customer expects personalizationOpens a new window and retailers are rising to the challenge with the help of AI, machine learning, and big data.
AI uses advanced machine learning algorithms to analyze browser history, page clicks, social interactions (likes, shares), past purchases, the duration for which a page was viewed, location, etc. to gauge customer interests and preferences.
AI can help deliver product recommendations based on frequently bought items, or related products. It can even help customize web pages and elements to suit a customer’s needs. For instance, Netflix does intense behavior analysis based on behavior and demographic dataOpens a new window to determine the content that will resonate with their customers.
4. Efficiency in Customer Service
Artificial intelligence in customer service reduces service time spectacularly and helps optimize operational costs. Addressing customer issues (or queries) in real-time will make them feel valued and add to a positive experience for them.
AI can contribute to customer service in the following ways:
- Chatbots and Automated Messaging
AI-powered chatbots and messaging agents can enhance the customer experience across channels. They can answer simple queries, engage customers, efficiently handle multiple interactions, and in effect, minimize response time.
- Automated Service Interactions
AI-driven programs can send automated messages to customers regarding a pending service, a part replacement, or a regular order. Most programs also offer automated service requests, service or order status, and simplified order revision, returns, or refunds.
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Also Read: How Voice-Enabled Shopping Is Giving Retail Its Biggest Boost to DateOpens a new window
Conclusion
AI can have a significant impact on how retailers deliver personalized customer experiences. Online or in-store retailers can leverage AI to understand customer issues, personalize recommendations and reduce the time to solve customer issues and queries. Personalized retail with AI is really the next logical step for marketers who want to wow their customers.
How is artificial intelligence personalizing your retail store and improving customer experience tell us on TwitterOpens a new window or LinkedInOpens a new window or FacebookOpens a new window ; we’re always listening!