How Can AI Help in Elevating Retail Revenue?

By: Retail CIO Outlook | Thursday, January 30, 2020

Retail executives must keep in their minds that any AI investment or implementation needs to be strategy-driven before anything else.

FREMONT, CA : Since data analytics and AI can directly be applied to help retailers to understand their customers better and offer more customized products and services, it makes inherent sense. Nevertheless, with so much going on in the retail industry concerning the operations of AI and data analytics for both front and backend optimization, it can be easy to be persuaded by any latest technology that promises to transform the business.

Product Suggestion:

While consumers shop in a store, sales associates help them in getting the product they are looking for. Still, with the advent of technologies, and AI recommendation system does it all, without any interference. Retailers can enjoy the benefits of executing an AI-powered recommendation engine, which carries an experience that equals ten years of experience as a human salesperson.

Visual Exploration:

Customers spend hours browsing to pick their ideal product, both in-stores, as well as online, which hampers their determination to purchase it often vanishes. In such cases, recommendations engines provide a solution only in an online platform. It allows the customers to have a computer vision, powered by machine learning (ML). It enables the consumers to take pictures of any clothing item of their choice and then instantly get served with similar products that are available in stores and online.

Demand Predictions:

The supply of a product can be optimized if the demand for it can be rightly predicted. With the help of AI, retailers can optimize their supply, which leads to significant cost-savings due to the lesser unnecessary inventory expenditure. Furthermore, the optimization of supply as per the demands can help in minimizing the out-of-stock troubles in stores where the demands go higher. Besides, it also lends a hand to plan advertising campaigns and maintain accurate budgets, with an impactful AI pricing system.

Text Analysis:

The retailers must take the help of the feedback from different channels of social media and more to gain maximum insights from their customer responses. Retailers are making use of AI to battle the challenges raised by the customers through the use of sentiment analysis and text classification. Companies can gain insights about the customer and the product experience by analyzing text data, which can tell them the sentiment by using text classification, even in an unstructured format.

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