Today, it is more important than ever for retailers/stores to be relevant in their communication, provide excellent shopping experiences, attract new customers, and retain existing ones. To succeed in today's tough competition, new technologies like machine learning/AI must be utilized to simplify and streamline all customer communications.
"Data is King"
"Data is King" is often said and is a prerequisite for analyzing and drawing the right conclusions with machine learning/AI. The second premise is that relevant data has been collected. One of the most important types of data is transaction data on completed purchases, followed by customer data that allows you to link transaction data to a unique individual. These two components make it easy to segment the customer and thus offer exactly what the customer wants in each specific case. For example, we can see if this is a customer who only purchases promotional items at reduced prices, regular-priced items, or specific types of items every time he/she visits the store or online shop.
We also have the aspect of cross-selling, so we can offer the right complementary products at the right time. We can automatically add a spatula when the frying pan is on sale. This generates additional sales and can contribute to higher margins. Transaction data for machine learning/AI can provide insights into product cross-linking and sometimes offer product combinations that may not be obvious, but are based on customer flow and type. For example, while a hot dog bun would be a natural complement to the hot dog being offered, machine learning/AI might suggest serving shrimp salad with the sausage instead, as most shoppers that day are adults without children. In order to create good product components, product data also contains information such as gender and age.
This means that we can now automatically target campaigns individually and better meet the customer's needs, creating loyal customers who make more purchases. If creating a campaign every week used to be a challenge, machine learning/AI enables us to create millions of personalized campaigns every day.
In other words, meeting customers on their own terms is becoming increasingly important for success. It is crucial to show customers what they want to see and provide them with the information they need to make purchase decisions. Mobile devices, with their small screen sizes, make customization even more critical. Machine learning/AI can help retailers leverage the screen real estate of mobile devices by delivering the best possible content tailored to each individual customer.
Price robots for everyone
Companies like Amazon have long had access to large amounts of price data and sophisticated pricing programs that allow them to quickly respond to changes in competitor prices and consumer demand. Today's retailers who do not have access to their data historically have not had the same tools and opportunities. However, through machine learning/AI, applications that adjust prices can now be offered automatically. These applications are often based on non-proprietary data such as weather, local events, and competitors' campaigns. This is a first step in doing something even without having relevant data. One must avoid losing customers simply because the price is wrong, causing the customer to choose to shop with a competitor. It is important that the customer must make a purchase decision in all situations!
AI in the Store
Using machine learning/AI actively in the store is becoming increasingly important. Store personnel can utilize machine learning/AI to provide recommendations and assist customers via portable devices like iPads and similar mobile devices. In the near future, we will also employ facial recognition to identify customers and inform store staff about their preferences and purchasing patterns. Considering demographic trends and even detecting the customer's mood and emotional state will be common in every customer interaction. Store personnel must be able to take these factors into account in order to deliver the best personalized service. As customers, we will consider this as a given and a must-have in order to be loyal and faithful patrons of the store chain.
AI - an Invisible Force
Many of these changes will be invisible because the underlying science and mathematics will result in better campaigns, prices, and customer behavior. This is not something that customers can see. Instead, the customer will feel that the timing was right and that the offer they received aligns with their expectations. Machine learning/AI will also reduce chain costs because increased automation will also lower customer expenses. It is definitely a win-win situation for all parties involved.
What can Mediaset offer?
Mediaset's concept "Store Automation," delivered in partnership with CakeBox and Dintero, is a data hub with machine learning/AI that accomplishes much of what has been described above. Would you like to know more? Send an email to salg@mediaset.no or click the button below.
