43% of professionals say that a lack of clear strategy is the most significant reason for not adopting AI in their organisations.
In this fast-moving industry, keeping up with technologies is a necessity, not an option. AI (artificial intelligence) is one of them, and signs show it’s the future of retail. These reasons will tell you why.
1. AI uses increase turnover and reduce costs
A recent study conducted by Capgemini research institute showed that 3/4th of AI used in the retail industry focuses on customer-facing applications. The study also showed that if retailers were deploying AI across their operations, they could save more than $340 billion by 2022. There are lots of operations that could involve AI, here is a list of the most common ones: AI enabling self-checkout, in-store bots for shelf scanning, planogramming, reduced in store shoplifting, AI powered stock replenishment in store, in-store customer behavior analysis. All these operations use computer vision to analyze the environment captured by cameras. Thanks to powerful algorithms, data is acquired with a high accuracy and used to automate operations. Setting up these AI projects is worth spending time and investing a rather important amount to start, as the automation of these operations reduce costs significantly in the long run.
2. AI technologies allow retailers to compete in the 21st century economy and better serve their customers.
This is what the future of retail looks like. A world where customer needs and wishes are anticipated for the best experience in stores. Retailers have all information in their hands and need to make a perfect use of it to stay ahead of their competitors. Sources of data are numerous (offline and online): data reconciliation is key for establishing the most complete customer profile. Today’s technology enables brick-and-mortar owners to identify customers in store, exactly as would do an online shop. Computer Vision (a subcategory of AI) can identify an entering customer to automatically send its profile to vendors, with information about past orders, preferences, recurring visits, product engagement and so much more. This knowledge improves service and thus, customer experience. It has a direct impact on sales as products proposed by vendors are more likely to fit the tastes of visitors. Computer vision can also detect when someone seems to be looking for vendor’s advice or seems to leave the shop. Yes, technology allow brick-and-mortar retailers to compete with ecommerce.
3. AI measures customer satisfaction
The store will always be a place where customers come for advice or tips. People are seeking human interaction, that’s why they are still going to stores. Unfortunately, the risk of not getting this interaction is significant, which has a direct impact on sales with 60% of customers indicating that they’d stop buying from a brand if the service received was not friendly.
Measuring customer satisfaction on locations is easily done with artificial intelligence, as computer vision makes it possible to detect basic human emotions, such as being happy, sad or angry to name but a few. Images captured from cameras are analyzed to detect situations where customers seem particularly unsatisfied. Is it because of a lack of stock? An unfriendly or inexperienced vendor? A too long waiting time? Reasons can be numerous. Improving customer satisfaction requires a deeper knowledge of what is going on in shops. This can be done by observations simply automated by AI.
Time for AI revolution in stores
To improve efficiency and performance of brick-and-mortar shops, predictive analytics is a necessity, not an alternative. Data and insights are at the heart of online retail, but bricks-and-mortar retailers are now able to use artificial intelligence to collect analytics to anticipate customers’ needs and gain insight into retail performance.
For sure, you’re interested in discovering how Piximate uses AI and computer vision to get you additional and valuable data. If you want to be part of those who take better business decisions based on insightful data, feel free to drop us a line to discuss this business opportunity.