HOW AI CAN TRANSFORM RETAILING?
Dec 23, 2019, 60 views
Technology has come out of the world of fiction and today anticipates the needs of customers, bringing great gains to visionary companies. Consumer behavior has changed in recent years. Today it is practically impossible to go through the buying journey without interacting with digital media. The smartphone is, for most customers, the main tool of public relations with brands. And that's just the beginning.
Artificial Intelligence (AI) is already part of daily life. According to the study Embracing the Machines: AI's Collision with Commerce, 70% of consumers already use IA to look for product offerings that they regularly buy or want to buy. Already a survey by Oracle indicates that 37% of companies have already implemented some system of AI and 41% intend to invest in technology by 2020. The search for quotations of tickets, the application that brings the fastest way home or an internet search for something like "a Japanese food restaurant near here" makes AI natural for a new generation of consumers.
Artificial Intelligence has been transforming retail from a six-step process:
1) Curation: This is what happens when the results of the first page of Google are sufficient. The tool understands so well what we want that brings us what is relevant. This saves time and effort;
2) Personalized information: what matters for each customer at the right time. It may be a warning about the delivery of an order or a reminder about the worsening traffic conditions (better leave now from the office for that meeting). Less stress in everyday life and better customer service;
3) Recommendations: no e-commerce lives without recommending products to customers. Soon, this same logic will also be in the physical stores, in a personalized and curated way. In a world of many possibilities of choice and little time available, who facilitates the buying process wins the preference of customers;
4) Behavior prediction: predictive analysis anticipates the needs of consumers and enables more effective actions that reach the public. One of our customers identified increased sales during a campaign that verified the consumer profile and the ideal time to contact each person. In this way, the consumer was given, two days of fueling, a reminder that the tank was almost empty and a discount coupon. Relevance, convenience and personalization in a single action;
5) Automation: many daily tasks are repetitive. Artificial Intelligence can understand customer behavior and perform these tasks independently. In the not too distant future, many categories of products can be purchased automatically. Nothing to stock powdered soap, but he will never lack;
6) Analysis of emotions: today, this phase still belongs to fiction. The use of Artificial Intelligence will allow us to understand, for example, consumer mood and suggest something perfect for that moment. The TV that suggests the ideal movie (goodbye, infinite navigation in the Netflix menu) and the lighting of the house that automatically adjusts for that encounter to two are examples of this idea. It remains to be seen how much the customer will feel their privacy invaded by it.
Retail will increasingly rely on technology to understand its consumers and anticipate needs and desires. Companies can already benefit from a platform of analytical products and strategic services focused on their needs, expanding sales and profitability through strategic management of customer relationships.