How AI Contributes to Increasing ROI for Retailers?

By: Retail CIO Outlook | Friday, February 22, 2019

The retail sector’s supply chain is being reshaped in many ways, from the assortment and inventory planning to resource management and check out. All these changes deliberate on what’s in the store and on the shelf.

Retailers are adopting most of today’s technologies efficiently for more profits, but nothing can bring them revenue if the consumers don’t decide to buy the products. AI offers retailers all new ways to connect more easily with customers to make targeted advertisements that help increase revenue. The cut-off strategy helps to understand what the consumer is more likely to buy before they make their way out to the store. It’s getting more difficult to keep consumers in virtual shopping as the e-commerce industry is adopting new online selling strategies. Add all the split-second online purchasing that taps the emotional core of shopping and instantly triggers the decision. This split-second decision is not as easy to revoke as it is in the store by simply putting an item back on the shelf.

Although retailers are constantly improving their use of AI, the technology companies are laying the foundation for continuous growth by investing in infrastructure. IBM is now leading the way— the company investing heavily in the development of AI to optimize customer experience.

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IBM has already created AI technology that can help consumers decide what suits them best depending on what they try out in the store. The company incorporates this technology into retail store mirrors and synchronizes the data using the retail store app.

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In the coming years, there will be a more revenue increase in the retail industry; the growth in mobile technology is a primary reason for this, as people continually upgrade their mobile phones and tablets, and subscribe to services that improve their shopping experience. Virtually, every retailer has an app today, and these apps use AI to market and send deals to customers. Retailers also use AI to provide recommendations for items that customers may want to buy. In addition, these companies are increasing their social media efforts, with Instagram as one of the preferred outlets for storytelling.