Undoubtedly the retail industry is one of the early adopters of artificial intelligence. In fact, they need it essentially as competition is skyrocketing and consumers are more attracted towards online offers. A few days back, when FuGenX, a global mobile app development company, decided to extend its AI service portfolio, it went into a deep research across industry verticals where it could get opportunities to solve current industry challenges through its cutting-edge AI services and solutions.
According to its study, the retail industry has been the front-runner in adopting AI solutions, in the form of chatbot, personal shopping assistant, AI-driven shopping concierge and more. Let’s discuss how AI can transform retail.
Poor staff can result in reduced sales and damaged brand image that results from poor customer experience they deliver. Predictive modelling with the ability to access historical data like footfalls, customer interactions, and approach shown towards customers can help optimize staffs. The optimized staff can help to achieve higher sales, deliver better customer experience and enable higher customer retention rate.
Store Foot Print Optimization
Decision needed to take on where to open a new store or should it be opened or not is a common challenge for retailers to measure the viability of their expansion planning. AI powered algorithms are being used to find out what can be the best location for launching a new store.
Smart algorithms can analyze the historical data like demographics, the local market, distance from competitors, nearby events and current data like weather patterns to check the viability of the store in the desired location.
Product Mix Optimization
Sometimes, environmental changes benefit or badly impact retail business. For example, reduced winter can cause loss on the excessive stocks or extended winter can offer benefits in the same case. Advanced AI algorithms that could correlate environmental variables with product mix can help you maintain the right inventory and create better in-store offers.
Supply Chain Optimization
One of the key areas that directly influence the performance of any retail operation is supply chain management. As said above, excess inventory causes cost burden and stock outs can lead customers to attract towards rivals.
Prescriptive demand models can help you combat this obstacle. Prescriptive demand models that consider past sales for a variety of products, marketing campaigns conducted before, and seasonality etc. can help exactly predict demand and supply forecasting. They can also help in boosting logistics and enable effective utilization of operational funds.
Personal Shopping Assistants
Personal shopping assistants can quickly and precisely interact with customers when they need to assist shoppers. The fashion retailer North Face uses a platform and bot that holds conversations with people online to help them find preferred products. Sephoras Chabot and the personal shopping assistant launched by app Spring are other known examples in this area.
When required to develop such apps, large companies always prefer the best mobile app development company or mobile app development company in the region who build AI solutions.
AI is changing its face rapidly and promising to deliver tangible benefits for retailers. According to industry experts, AI is expected to bring a huge difference to the retail value chain. So forward-thinking retailers have enormous opportunities to leverage artificial intelligence to achieve a first-mover advantage. As a result, there is an increased demand for artificial intelligence companies and mobile app development companies who develop chatbots.
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