There’s always talk about how online sales will kill traditional brick-and-mortar stores, particularly given the recent turmoil in retail as a result of COVID-19. However, while shopping habits are undoubtedly changing, physical sales will continue to be an important part of most retailers’ businesses. According to Euromonitor International, 83% of goods purchased globally in 2022 will be bought in-store. The optimal way for stores to ensure strong sales is to enhance the shopping experience, and this is achieved by updating their technology.
Artificial Intelligence is the key to digitalising in-store retail, because of its potential to personalise the customer experience for the individual, and increasing engagement between the retailer and consumer. When AI is implemented, retailers and customers benefit from having the best of both worlds, as it bridges the gap between virtual and physical sales channels.
In order to thrive, brands will have to reimagine the overall in-store experience, and technology will be the key to their success. However, rather than implementing flashy, PR-driven technology for the sake of it, brands must install technology that will streamline business processes and benefit the business long-term.
AI Benefits for the Customer
Artificial Intelligence focuses on making machines capable of solving problems as well as human beings can. It allows machines to learn from experience, adjust to new inputs, and perform human tasks.
Many businesses can benefit from integrating AI into their systems, for example by improving task management and gaining customer insights. AI can free up valuable time for business owners and staff, allowing them to dedicate more resources to more complex projects.
It can gather detailed customer patterns and preferences, enabling more informed long-term decisions. Retail Ai can learn about customers, their preferences, and their behaviour. It can get to know them so well that it identifies what they want and when they need it before the customer.
There are benefits to be gained from AI producing this type of information on the fly, such as encouraging the customer to buy more. If AI knows what a customer needs before the customer does, it can issue a coupon for a product, triggering them to buy an additional item that they didn’t initially come for and generate additional revenue.
Another benefit is improving the customer’s experience in a physical store. If a business offers them exactly what they need at a great price, it enables the business to start building personal selling relationships with its customers. By cementing their loyalty to a brand, a business can create a solid customer base.
AI Improves Product Layouts
AI can improve the way products are laid out in a store, which is an important factor in maximising sales. When provided with sales data, machine learning can discover patterns in customers’ buying preferences and learn what products they buy together. AI can provide retailers with suggestions on what items to put next to each other in-store to encourage customers to purchase more. Since the suggestions are based on real data, it is guaranteed to deliver results i.e. more sales and increased engagement with customers.
These examples are only scratching the surface of how AI can benefit physical retail stores. Amongst other benefits, it can be used to improve inventory turnover, optimise stocks, and predict future revenue.
The only downside is that integrating AI into a retail store can require a major investment in technology, which not all retailers can currently afford. It will be interesting to see how solutions will be crafted to suit smaller retailers in the future. It won’t be too long before independent retailers and smaller chains have access to the same technology as the big brands, which will help to provide a more level playing field.
Regardless of the financial considerations, the integration of AI into brick-and-mortar stores will be an inevitable, natural development for the retail industry. AI will be fundamental in the effort to optimise the in-store customer experience and prove that the physical store is not dead. By merging the physical and digital worlds to deliver a better shopping experience, AI will be a saviour for retail stores.
RMS is a leading provider of retail services in the UK and Ireland. We understand the importance of AI in the retail sector, and have integrated it into our resource management system, flex, to assist in the planning and scheduling of teams of flexible retail staff.
