What Retailers need to Learn from the Industry’s Push towards AI and Big Data?
The future of retails tends to look uncertain due to the fact that more than 7000 stores closed down and 662 others filed for bankruptcy last year. For instance, you can have a look at Amazon to find out how the e-commerce has transformed the retail landscape without affecting the industry. With just a single click, clients can buy anything they need and at any time they want it and have it delivered to their doorstep.
Even though the e-commerce is known to offer unprecedented convenience, it does not mean that brick-and-mortar is coming to an end. This is because clients still love the in-store experiences. The truth is, the majority of clients believe that those apparel companies must concentrate more on giving better experience both online and in-store, instead of concentrating on their online presence only.
Enhanced in-store experience and services can help in keeping the brick and mortar stores alive, but the retailers must implement new and innovative techniques to re-engage with clients. For instance, beauty retailers can use AI to personalize their in-store shopping experience using the color IQ technology. This is a machine that uses machine learning to scan the skin of clients and offer them personalized skin care and makeup recommendation depending on their requirements. Apart from adding a touch of personalization to the user experience, employees will also have free time to concentrate on other touch points in the customer journey. Additionally, employees can now concentrate on educating clients on how to use their Color IQ products and supporting complimenting products.
By realizing this notable industry shift, both large and small retailers can use new technologies to improve the in-store experiences, increase inventory specialization. This is how they can do it:
Giving clients a personal shopper
It is evident that clients will appreciate seamless, tailored online shopping experience and demand the same in the in-store shopping. Cotton Inc., more than 50% of clients prefer buying clothes from companies that recommend products based on past purchases. While online retailers can achieve this through with cookies, the brick and mortar retailers can get the similar results by using details accessible in a client’s transaction history.
AI obtains insights from client transaction data, giving retailers important information to personalize in-store offerings on a client-by-client basis. For example, evaluating the client receipts will reveal which items customers purchase and what products are mostly bought together.
Make sure you stock what is required only
Never should you stock products that will not a sale. By stocking less and better performing products, retailers will need less space for their brick and mortar business, allowing them to save on rent and other operational expenses. Additionally, being proactive and thinking smart will help retailers can be more agile about exploring unexploited markets and capitalize on the opportunity to place the business in perfect and high traffic sites.
Focus on reaping the benefits in the supply chain
In the current retail environment that is extremely competitive, the supply chain is the best place where retailers can cut costs. Stocking companies that use data-driven insights lets retails to produce what they need and deliver directly to the ideal location. Effective utilization of storage space is particularly essential for small business with limited space. Since the retailers have a more accurate idea of what products will make huge sales in specific locations, they will avoid shipping expenses on poor performing products and conserve on inevitable returns. This supply chain optimization assists retailers to save cash and regulates the production of waste material when manufacturing and shipping items.
By capitalizing on modern technology to improve the in-store services and experiences, retailers have a chance to prosper at a moment where every decision is make-or-break for the majority of people in the industry. Additionally, advancement in technology has brought tools such as AI, big data and cloud technology that empowers retailers with the insight required to make informed decision and increase -their in-store clients.
As the clients are now taking control, the retail has turned out to be an industry that progressively values specialization. Physical retail stores assume an enormous value for clients, but this only happens if they offer a tailored shopping experience that clients want. Even though this is not the end for brick and mortar, both huge and small companies need to know how to effectively use technology to outshine current disruptors.