The onslaught of online ecommerce retail has dented physical brick and mortar store retail businesses.
However, the good news is that retail is going strong. Euromonitor International predicts that by 2022 about 83% of products purchased will be in stores, not online.This does not mean you can be complacent. You can boost your retail business, small or large, with the help of artificial intelligence development services.
From improving in-store experience to predicting behaviors, AI can and does help to attract new customers and retain existing ones.
What can AI development services do for your retail store?
Which products sell more?
It is not easy to conduct a head count across rows of shelves in your store. However, artificial intelligence development makes it easy by using video and heat maps.
You can find out how many people cluster around specific shelves at any given point of time and link this data with sales.
The AI system helps to derive intelligence on which products in your store generate maximum interest and find out if it translates to sales.
Likewise, your CRM can be AI endowed and it makes short work of analyzing all sales parameters over a period of time.
You can then predict demand and order out more supplies or curtail them.
An IDC report shows that infusing AI into CRMs will boost global revenue by over $ 1 trillion by 2021.
Apparel and food are two distinct channels in which customer preferences keep changing according to trends and according to customs.
There are broad overall trends and localized trends that may be in divergence. You cannot misjudge inventory.
If you do not have adequate stocks you miss out on sales and if you have excess, it becomes a dead loss.
Going into details of analysis of changing requirements of customers for different types of apparel or food would be time consuming.
This is where you let AI do the work and you have a pundit that forecasts demand.
With AI, you win both ways: You can maintain adequate inventory to meet surge in demand and you can taper of purchases at the end of season or when a certain product goes out of style.
You have customers walking into your store and browsing products. If they are registered with you then you can let your AI system track their browsing behaviors.
Some AI systems are known to use eyeball movements to detect items of interest to customers and then push notifications to the customer’s phone. Similarly facial expression and emotion recognition is possible with AI.
There is more AI can do by way of cross-selling and up-selling when you get your artificial intelligence development to develop a custom solution.
For instance, you can go a step further and provide kiosks with biometric recognition and display suggestions as well as loyalty rewards besides a personalized shopping experience.
A customer, for example, may not have to walk across the entire store. The kiosk becomes the browsing, ordering and payment point, a sort of deluxe shopping experience.
Segregate profit making and loss making items
As a retail store owner you probably stock and sell hundreds of items ranging in value from small to large. Some top brands offer very little margin. Some products offer a good margin but have low volume sales.
Some products are larger in size and occupy more space and give lower returns. How would you take a decision to optimize your operations to make more profits, cater to customer needs and reduce dead investments?
It is a challenge to analyze every minute detail. The secret to success if to get an AI based analytics solution for retail that will analyze historical data and monitor day to day sales for a period of, say, 3 to 6 months.
You then get a clear picture of which products you can stop selling and which products you should pay more attention to.
Organizing your store and employees
Your operations depend on a well organized store and employees. However, are you making it easy for employees to do their job or are they saddled with cumbersome, avoidable tasks that take up their time to little effect?
Is your store well organized and laid out to make it easy for employees to stock shelves and manage customers?
AI in your HR can do a lot not only for procedural matters and hiring people who fit in but with also organizing flow and reduction of workloads.
Artificial intelligence development does cost money. However, you get returns beyond your investment in tangible and in intangible ways.
One important thing to consider is the customer experience.
AI helps you to deliver a refined service in line with expectations and thus attract more customers to your store. Proceed on an incremental basis by engaging AI.