In a context in which the customer journey unravels seamlessly between the online and offline worlds with consumers who, therefore, increasingly experience a continuum between digital and physical (onlife), retail preserves its centrality and prepares for the new challenges imposed by the digital evolution, including the use of artificial intelligence-based solutions and strategies.
Faced with an increasingly demanding, aware and informed consumer, looking for increasingly personalised, immersive, but above all coherent and fluid shopping experiences, the retailer cannot go wrong. The latter must know how to meet expectations, do so in an agile and effective manner, providing valuable experiences while fully respecting privacy.
In the face of these major challenges, artificial intelligence can really make a difference by offering significant opportunities that must be seized, putting the right approach in place.
According to the report ‘The Economic Potential of Generative AI: The Next Productivity Frontier’ drawn up by McKinsey, the adoption of A.I. and Generative A.I. solutions, in particular, could generate value for the retail sector by increasing productivity by up to 2% of annual turnover. An opportunity not to be underestimated, therefore, but starting from what challenges?
Let’s find out together.
The retail of the future: innovation, personalization, efficiency
In order to fully understand the challenges facing retailers, let us analyse the context starting from data released in a study published by the BVA Doxa and Salesforce Observatory on retail trends in Italy, now in its third edition, ‘Retail Evolution’, carried out in April 2024 on a sample of more than a thousand consumers.
More than 68% of Italian consumers declare themselves to be more demanding than in the past, and this requirement no longer concerns only aspects relating to the product (e.g. cost, characteristics, convenience), but affects the entire shopping experience. 50% of the consumers interviewed expect the purchasing process to be simple and smooth, 49% of them say they appreciate innovative digital services and the personalisation of services plays an increasingly crucial role, appreciated by more than 47% of respondents.
Consumers seek the product experience first, preferring to buy from brands that value relationships. From the personalisation of offers and communications to buying advice: every retailer needs to know how to get closer to the consumer, to offer consistent experiences across channels that allow the consumer to relate and feel comfortable As tastes and preferences change rapidly, it is important for retailers to be able to intercept trends but also emotions, always offering engaging and valuable experiences.
Let us also not forget that consumer expectations today are very much influenced by comparisons with global brands and players: Amazon’s fast delivery times are a perfect example of this, as is the level of efficiency of customer care services of other major players.
These expectations are also reflected at the point of sale, where there is an increasing demand for greater efficiency, availability of products in a short time, and efficient and high-performance assistance services.
Lastly, let us not forget to add to this complexity the issue of privacy and personal data protection, which increasingly requires us to juggle articulated regulations, with the dual objective of using data to drive business, and at the same time ensuring that customers’ privacy and security are always protected, a fundamental prerequisite for maintaining their trust over time.
Artificial intelligence in retail: personalization and more
If we wanted to take a snapshot of the use of artificial intelligence in retail, we could observe how its use to date has mainly focused on improving the customer experience through hyper-personalisation strategies and activities.
On other occasions we have observed how, at this moment, the use of technological solutions such as Blendee, capable of assisting sales staff through the creation of complete and updated customer views in real time, can really make the difference, allowing them to develop
winning data-driven sales strategies.
In this regard, let us recall how, precisely, the use of the data collected at the various touchpoints makes it possible to understand consumer behaviour and respond to the evolution of their needs, identifying, on each occasion, the most suitable and relevant products.
The personal shoppers to which the American luxury department stores had accustomed us are being progressively replaced even in stores by virtual assistants that use advanced algorithms and machine learning to understand a customer’s preferences, style and budget. They can examine thousands of products in a matter of seconds, selecting those that best match the customer’s needs and tastes. This not only saves time, but also makes online shopping a pleasant and hassle-free experience.
In retail, however, the use of artificial intelligence has also found its way into applications more oriented towards the interaction with products themselves. 3D and holographic technologies allow customers to view products in high definition, while virtual and augmented reality help to create truly immersive shopping environments.
But even the backstage of a shop can experience its own revolution based on the adoption of artificial intelligence-based solutions that can help improve the efficiency of entire processes.
Think, for instance, of inventory management Retailers, thanks to A.I., can analyse market trends, observe competitors more accurately and, on the basis of the data collected, also optimise their pricing policy.
Let us also not forget ‘customer service’: AI-powered chatbots, capable of understanding and answering natural language questions in real time, offering 24/7 assistance, online and offline, can guarantee a highly efficient and personalised service.
Artificial intelligence in retail: beyond the trend
The integration of artificial intelligence in retail is not just a trend, but a transformation destined to redefine the entire retail sector, improving efficiency, fostering innovation and personalising the consumer shopping experience.
To unlock the full potential of AI in retail, however, it is necessary to understand its value and potential at an organisational level.
Artificial intelligence will undoubtedly continue to drive the evolution of the sector in the near future, but this evolution needs to follow a well-defined direction, because only then can it really make a difference.
Discover how you can personalise the shopping experience in your shop with Blendee!
