AI in retail: See how consumers determine success — before the sale

In today’s retail environment, customer data is one of the keys to helping retailers optimize operations and increase sales. Shoppers regularly generate considerable amounts of data on everything from brand and product preferences to purchase frequency. But capturing and analyzing that data is no small undertaking. That’s where artificial intelligence (AI) and machine learning (ML) come in.  

AI and ML offer organizations the ability to process massive amounts of business information faster and more efficiently than ever before. That data can help retailers uncover insights and find opportunities that might otherwise go untapped. 

But what if AI/ML could do more than just analyze past actions? What if these technologies could help retailers predict consumer behaviors? Well, retailers are in luck.

AI/ML can provide consumer insights long before anyone pulls out a credit card or clicks the buy button. That can offer a huge competitive advantage in any industry, but even more so in the increasingly challenging retail space. Companies that can deliver data-driven, personalized interactions — before, during and after the sale — can elevate the customer experience. That can lead to increased sales and greater customer loyalty.  

Market data indicates that AI is projected to contribute up to $15.7 trillion to the global economy in 2030. So, it’s clear that this technology is not a fleeting business trend. Retailers who invest now may see a positive impact on their bottom line. 

Customizing for customers

The promise of AI/ML sounds intriguing. But where do you begin? One important consideration is that AI/ML is not one-size-fits-all. Retailers need to consider their unique business challenges and opportunities beforehand and then work with a technology partner to create a customized implementation plan. Situational factors can include the number of storefronts (and geographic footprint), the number of product SKUs, integration between online and offline sales, and more.   

Here are five ways that AI/ML can help drive retail businesses forward:

1. Create a more human retail experience: AI/ML can be the backbone of more human and personalized retail experiences. Properly used, AI can be a powerful tool for differentiating services and curating products. By drawing on data gleaned from previous customer interactions and preferences — and anticipating future needs — AI can help build stronger customer relationships.
2. Advance your CRM capabilities: AI can help you use data to streamline operations and focus on the consumer. AI can help automate CRM tasks like sales and customer service, freeing teams to focus on growing revenue. What’s more, AI can analyze data enabling more personalized customer experiences such as curated products, promotions and recommendations. 
3. Power storefronts that understand shoppers: No matter the size of the retailer or their preferred sales channels, AI can help build personalized solutions. Today’s customers are spending more online, with e-commerce sales expected to grow 10.4% in 2023. So, how do you encourage them to spend more time in physical stores? AI can make a difference. It helps retailers design, build and evolve their storefronts to intuitively meet shoppers’ needs. By curating products that are more relevant to the consumer, AI can help turn browsers into buyers.
4. Integrate seamlessly flowing channels: When data channels work together, the results can be retail magic. AI/ML can combine operational optimization, responsive research and development, demand forecasting, inventory management and marketing data into a seamless stream of actionable insights and implementable programs. This integration may serve to help eliminate organizational silos and competition among varying departmental goals and strategies. 
5. Meet the demands of today and tomorrow: What if the supply chain and inventory could work in concert, reacting in real-time? The result would be a faster response to changing consumer demands, manufacturing challenges and transportation issues. AI solutions can help predict demand while also increasing supply chain visibility. Retailers could then streamline orders, optimize inventory and make more strategic decisions about the present and the future.

The talk, the reality and the future

While retailers are increasingly finding new uses for AI/ML, the truth is that even the largest online and brick-and-mortar operations are only beginning to harness its power. Retailers can gain numerous benefits, such as enhancing customer experiences, streamlining inventory, optimizing marketing budgets and — ultimately — increasing profitability. 

Don’t risk falling behind in the hypercompetitive retail industry. The time to start adopting AI is now. So, how do you set your retail location up for success?

The easy answer is to begin incorporating some of the simpler applications such as intuitive chatbots, dynamic pricing, store clustering and increased personalization. But as the technology evolves, companies first need to make sure their IT infrastructure and network connectivity are ready. An influx of new customer data can be of great value — but only if your systems are equipped to handle it.

Spectrum Enterprise works with companies of all sizes to build a modern network to support advanced data capture, storage and analysis from AI/ML and other emerging technologies. Leverage dedicated fiber internet and cloud connectivity solutions to help you break down data silos, understand and respond to customers faster and optimize your supply chain across your entire retail footprint, including brick-and-mortar and e-commerce. 

Learn more about our enterprise network solutions to enable digital enhancements.