The retail sector has undergone many transformations in recent years, modifying the ways of acting due to new technological advents and consumer attitude. With artificial intelligence in retail , for example, strategies designed to attract and serve customers have improved, allowing brands to stand out in the segment.

This is because AI (Artificial Intelligence) is a very important tool for optimizing time, increasing the competitive power of the business and minimizing failures.

Currently, several everyday activities are directly related to technology and artificial intelligence itself. 

In the business world, this integration would not be different, in fact, being intensified to meet the needs of the public, since it provides personalized and more effective experiences.

Marketing , search engines, shopping, everything is based on AI to perform quality work in a timely manner.

For this reason, professionals in the retail segment who aim for high performance use this technology for mitigation plans, something that helps to make assertive decisions that reduce risks.

Understanding artificial intelligence better

AI is basically a technological advancement that provides more autonomy for machines.

That said, systems and tools are able to replicate an “intelligence” very similar to that of humans to perform repetitive activities, such as calculations and identification of patterns, as well as dealing with a lot of information.

For this to happen, there must be the application of Machine Learning and some standards for adapting the machines, as well as adequate programming so that it responds according to the business needs.

Thus, the equipment can go beyond the programmed functions and have autonomy to help in important decisions, such as through better informed information, autonomously.

What is Artificial Intelligence

The term Artificial Intelligence emerged in the 60s and since then researchers have developed important technologies to increasingly optimize human routines and improve machine operation, as an excellent ally of strategic actions, for example, so that employees could focus their efforts in more profitable actions and intelligence.

Consequently, in recent years, the results have been used in the daily lives of companies and society as a whole, with the use of intelligent machines that improve processes for purchasing inputs, relationships with customers and suppliers, sales and after-sales. , marketing, as well as the routine through virtual assistants.

That is, the implementation of AI in retail has become an important point in technological evolution, making it possible to have smarter warehouses, omnichannel , machines capable of creating connections, automated markets and other gains that transform the way this sector operates.

Why invest in Artificial Intelligence in retail?

Due to technological evolution, the automation of processes in companies has had a considerable increase, improving the efficiency of business functions and service flows, for more quality products in less time or providing services in a more efficient and optimized way. 

There are several competitive advantages that can be leveraged with investments in AI, for example, management can be facilitated, operational processes streamlined and data analysis can occur with more quality and speed, and these are just some of the positive points.

With these advantages, retailers can improve their entire routine, allowing the application of strategies and improvements such as:

1) Identification of trends and trading patterns

The storage of strategic data is one of the great assets of artificial intelligence. 

The collection and treatment of this information allows professionals to effectively analyze the behavior of the audience and their preferences, through product returns or the increase in the sale of an article, for example. 

Consequently, it is possible to discover and even predict what the market patterns and trends are and what they will be.

This process does not concern only the segment in which the company operates, that is, it manages to show parallel trends and several changes in society's behavior and consumption.

With the results of the analyzes it is possible to create new languages, products and strategies that are important for the success of the retailer.

2) Optimizing the customer experience

The use of artificial intelligence in retail enables a more personalized relationship with the customer.

With data capture, retailers can better understand needs and purchase history, as well as product preferences, offering new opportunities, renewing a service in a timely manner or even receiving a product that may be out of stock.

In this way, professionals can offer a personalized experience, with excellence, prioritizing what the person wants, but without neglecting effectiveness, intelligence and strategy.

Also, queries for queries and completion of purchases can also be optimized and streamlined, as with the application of chatbots.

3) Better inventory management and displayed products

AI in the retail area allows companies to have a very realistic view of the environment and the entire trade logistics/infrastructure. 

This means that it is possible to have cameras and sensors that identify the products present in the stock and shelves, as well as intelligent inventories that count exits and entries, expiration dates, among other aspects that are decisive for assertive decision-making, such as the creation of a promotion.

That is, with this more in-depth view, employees can create specific strategies for retail management with information updated in real time, something that allows better meeting demands, facilitates inventory visibility and preserves sales efficiency.

4) Strategic customer retention

Retention becomes more accurate in retail thanks to artificial intelligence. 

In e-commerce , for example, this technology makes the operation of websites simpler, with faster navigation.

In addition, the AI ​​is able to collect data from searches made and all user interaction with the site, considering factors that are important to complete the purchase, such as delivery time, payment terms, prices and product models.

Thus, when completing the purchase, the customer may be faced with a pop-up that appears on the screen with product suggestions or even guidelines for use, among other possible actions. 

Popularly known as retention pop-up, there is also the resource option consisting of a window with a photo of the product and a discount or promotional value, in the case of “abandoned” carts.

This technique is used in the shopping cart, that is, it makes it possible to offer new promotions, something that helps with sales.

The result of this technique is usually very positive, as it encourages customers to continue looking for products of interest at the store, especially after receiving the promotion, to complete a larger purchase that considers all their needs. 

This action generates a greater volume of purchases and increases the average ticket per person.

5) Efficiency and agility in processes

The automation of some steps allows employees to focus more on other activities, something that makes actions more strategic, generating agility and efficiency in the operational and strategic part of retail.

Furthermore, all flows are streamlined using the machines, which only require occasional follow-ups.

Consequently, the reasons for investing in AI in retail are very interesting for sales and directly collaborate with marketing strategies, such as Inbound Marketing which becomes more segmented, in addition to helping to reduce costs.

With the increase in the company's revenue, it is possible to have more competitive advantage, further develop the business and improve the brand image.

Thus, the main benefits of adopting AI in retail are:

  • Improves product storage;
  • Allows a control and history of items and sales;
  • It makes it possible to understand customer behavior;
  • Optimizes purchasing processes;
  • Allows better inventory management;
  • It facilitates the routine services of employees.

These are just some of the benefits of investing in the use of artificial intelligence in retail, being an excellent way to improve the company's sales and revenue.

Marketing, the importance of AI and the use of software

The use of technological software and artificial intelligence allows retailers to optimize processes, make data analysis simpler and faster, in addition to enabling the implementation of tools such as chatbots and digital assistants.

With modern technologies, companies can have cost reduction, considerable increase in productivity, process automation, more practicality in quality control and improvement in marketing and communication.

This means that artificial intelligence is very useful for brands, since it operates from website service, through stock control, to the production of more qualified content for Content Marketing , considering all the behavior of the potential customer. to attract new consumers and improve audience engagement/brand relevance.

The application of artificial intelligence in marketing is a very advantageous strategic action, as it allows entrepreneurs to know the behavior and consumption trends of customers, as mentioned earlier.

But it is also possible to further extrapolate this use and analyze a large volume of data to interact in depth with customers, offering an unforgettable experience. To this end, other applications of AI in marketing that contribute to retail are:

1) Voice recognition

This is an artificial intelligence trend with great potential for use. This is because the algorithms can learn phrases, expressions and many language resources to interact with the user and direct searches and products, and can be used in chats – which adds an advantage in accessibility.

With this, retail companies can use voice recognition in service channels, searches and customer support, for example, improving the customer experience, building loyalty.

2) Pricing of products

It is possible to use artificial intelligence for the pricing of goods, something that allows you to have more control over the law of supply and demand. 

Websites for airline tickets and book sales, for example, have high fluctuations in supply and demand. Thus, AI can be a great ally for good results in retail.

3) Ad development 

The creation of advertising campaigns is a very common action in retail, as it is through the dissemination of products that the public can get to know the company better and buy merchandise.

Paid ads for social networks, for example, are a great strategy for segmenting the public, they are cost-effective and improve the credibility of the business.

The Ads platforms of social networks, such as Google Ads, Facebook Ads, Twitter Ads , Linkedin Ads and Youtube Ads, including, already have their own intelligence to create more effective campaigns to achieve certain objectives with the public, improving the results obtained.

Therefore, investments in artificial intelligence are very interesting to increase sales, stand out from competitors, gain space in the market and make your company a reference in retail, in addition to making the consumer the center of attention in your business.

 

Article written by the Ideal Marketing , a company that offers complete Digital Marketing automation software with an innovative methodology to meet the most diverse needs of its customers.

 

Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.