Artificial intelligence and Machine Learning is making its way into the retail industry. CPG and Retail companies have now a huge opportunity to grow. However, many leaders have been struggling while others are thrilled about AI. Less knowledge leads to fewer customers. It’s all about giving the customer a great experience. Retail owners have to step up the game or they may face disruption. Here are some ways CPG and Retail Industry is changing.
Facial recognition is one unique application of AI. Loyal members are tracked as they walk into the stores by 2D & 3D computer vision. By studying the buyer’s history of purchase, computer vision prepares a personalized shopping experience for the buyer. Treating customers individually builds trust instantly which makes a one-time customer into a regular customer.
Trade promotion management is of the most important aspect of CPG success. CPG businesses often struggle to manage their trade promotions. The challenges are solved by AI-enabled Trade Promotion Optimization software. With the help of advanced analytics, it turns data into solutions for trade promotions. The result is effective promotions and high returns.
Increased customer engagement:
AI and Machine Learning is an extraordinary tool for encouraging customers to interact with. Every customer has their favorite product. It’s a daunting task to get that information. The existing customers can help retail owners to get this infromation through their friends. Through customer feedback and remarks, retail owners get this information easily. AI-enabled chat interacts with customers to ask questions about their friends and also give personalized solutions on the fly.
We love to save money. We compare prices of different shops, talk about sales, etc. Dynamic pricing also called real-time pricing, It’s highly flexible. Customers look for the price to go low. Retail owners, who use AI and Dynamic Pricing mechanism, make a solution more personal and give a WoW Experience that perfectly fits. Some retail shops will charge less as the history of buying data is analyzed by the AI & Machine Learning. The moment a buyer goes online to buy, history helps to understand the buyer’s emotions. A certain price is set for the individual buyer, which helps the customer purchased the product keeping the customer happy, loyal and finally make them our Advocates.
Retail shops are about to have self-checkout counters. Still, now humans are at the checkout counter to calculate the total price and to handover the bill. It is time-consuming and human error is always an issue. Self-checkout is becoming the next reality. The AI now detects when someone walks into the shop, if a product is taken off from the shelve, it’ll automatically add to the virtual cart.
It helps avoid the queue and gives customers a better experience. Similarly, when the customer walks out of the shop with purchased items, the transaction is done through an online account. The retail store can have fewer associates and a lot of time can be saved.
The Next Best Products:
A customer leaves clues of purchase patterns. Using AI and Machine Learning, human behavior on purchase patterns is studied for better Predictive Analytics and Campaigns or Cross-Sale. What customer is about to buy is understood by studying these data. Such as, oftentimes it is observed that buyer of fruit juice often looks for potato chips. Placing these two products side by side helps increase the odds of buying both the products together. The retailer’s workload becomes loess with the help of the history of previous data transactions.
Social Media Feeds:
People spend so much time on Social Media than on TV. Social media has become a feedback forum. Retailers look for social media activity to understand customer’s needs. The choice of brand for each people is different. Using AI and Machine learning, CPG & Retail industry owners check customer’s social media posts to understand the customer’s thoughts on a particular brand. For advertising, product development & marketing, social media posts are vital.