In the ever-evolving landscape of retail, staying competitive means more than just offering quality products. It is becoming more and more about delivering an exceptional customer experience. One of the most transformative tools for achieving this is available in the form of technology. Despite e-commerce’s rapid rise in popularity, brick-and-mortar stores still hold great opportunities for retailers. The use of in-depth data analysis is needed to better the experience for customers—and solve a number of other common retail challenges in the process.
Retailers are experiencing a surge of energy due to Artificial Intelligence, which is revolutionizing the customer experience, streamlining operations, and uncovering new avenues for consumer engagement. Personalization is the next big frontier for retail success. In order to do that, retailers are having to contend with tech-savvy consumers whose ever-changing preferences are expected to deliver quick, easy, and personalized shopping experiences. With the ability to comprehend consumer needs and provide individualized services, Artificial Intelligence and generative AI are the ideal technologies for meeting these expectations. To many, the understanding is that an AI-driven customer experience would be impersonal, considering it involves little to no interaction with an actual person. This, while seeming correct to some extent, may be a common misconception. In reality, if managed well, AI-assisted retail technology can be used for customizing services to meet specific consumer needs. At this point in the journey, it would require a live agent. A good AI model ensures that at the brick-and-mortar level, it does not replace an agent but rather augments the agent. For example, many businesses are using artificial intelligence in retail to gather relevant information about a customer’s needs before their in-store visits. This is done in an attempt to streamline—and thus improve—the quality of the customers’ trip to the store. Modern-day retailing is about creating a cohesive customer experience across all available shopping channels, including in-store, online, mobile, and social media. This approach is designed to meet the customer wherever they are, providing flexibility and convenience at every touchpoint. Technology actually serves as the backbone of this new retail reality, enabling consumers to navigate through different channels seamlessly. Retailers who have already started leveraging the benefits of cloud, AI, and mobile technologies are much better positioned to offer these integrated experiences. In doing so, some of them are not only meeting but exceeding customer expectations.
Take the Indian market as an example. India is among the top five $1 trillion markets, and could end up to be the world’s third largest consumer market by 2030. The clothing retail landscape in India is currently going through an evolutionary change, contributed in a large measure by the convergence of technologies, especially artificial intelligence In India’s fast changing clothing retail sector, the top three chains are recognizing the importance of using machine learning to stay ahead in the brick-and-mortar game. Inspired by Zara’s global success, they are using AI to transform the supply chain, estimate customer behavior, and decode character traits. This strategic pivot is about more than just technological advancement; it’s about staying relevant and altering the story of fashion retail Let’s briefly understand what Zara has done. To get more insight into customer behavior, Zara has formed a strategic alliance with a company called Jetlore, who is a top supplier of predictive customer analytics. Utilizing Jetlore’s cutting-edge AI algorithms, Zara can foresee preferences and provide individualized suggestions by analyzing enormous volumes of client data. Through targeted marketing efforts and carefully considered shopping experiences, this partnership enables Zara to improve consumer engagement and loyalty, resulting in an increase of sales and revenue development
Retailers in India and GCC, who wish to capitalize on such technological advancements have several options, even if AI in retail is still far from reaching critical mass. Global retail chains have already invested heavily in AI solutions for various purposes, demonstrating that AI can transform the entire purchasing process and provide quantifiable returns for brick-and-mortar retailers. While AI-powered personalization in brick-and-mortar retail offers significant benefits, it does not come without its challenges. Collecting and using customer data for personalization raises privacy concerns. Retailers must be transparent about data usage and ensure compliance with data protection regulations. Implementing AI systems can be expensive. Retailers must weigh the costs against the potential benefits and ensure a strong return on investment. Staff members need to be trained to work with AI systems effectively. Ultimately, any technology is only as good as the humans operating it. And yes, senior management would need to be upskilled in terms of getting a better understanding as opposed to leaving all such calls at levels of mid-level IT experts. As we look to the future, it’s clear that the retail industry’s technology investment landscape will continue to evolve. The integration of technology into retail operations has moved from a competitive advantage to a necessity. Retailers must stay abreast of technological advancements, such as Generative AI, to remain relevant in a rapidly changing market. In a world where customer expectations are higher than ever, embracing AI-powered personalization will be the key to success for brick-and-mortar retailers. Instead of aping the online model, they should find areas which online will never be able to fill.
Read more at: https://cxotoday.com/story/brick-and-mortar-stores-in-the-age-of-ai/