AI and its transformative potential in retail

Let’s just say it like it is - AI is not new.

It permeates much of what we do day to day, whether in our face or in the background.

Customers aren’t just ready for the tools of tomorrow, they are using them in their everyday lives and consumers are intrigued by the opportunity to use AI when they shop.

Roughly four in five consumers who haven’t yet used AI for shopping would like to explore how it can help them research products or get product information (86%), look for deals and promotions (79%) or get service, ask questions, and resolve issues (82%)...

So why is it the big buzzword “Artificial Intelligence” that overshadowed dialogues of 2023 further permeating into 2024 with such resistance?

Just ahead of NRF, IBM released?the report “'Revolutionize retail with AI everywhere: Customers won't wait” and if there is question of whether or not consumer believe in AI, let’s look closer at one of the most eye opening statistics: According to the survey of 20,000 consumers across 26 countries—only 9% of consumers say they’re satisfied with the in-store shopping experience.

Nine percent is mind boggling in some ways, and makes one question how there is such an enormous gap between expectations and what retail is delivering today. But we can also see this as an enormous opportunity to think differently; differently with a consumer-first mentality at the nucleus of all decision making.

Being customer centric with unified experiences is another buzz-term buzzword we hear often but with a 9% statistic, are brands and retailers really listening to customers in the ways they should and translating the needs, wants and desires by prioritizing the elements that can move the needle and elevate the experience in meaningful ways? Survey says no.

Here are some areas where consumers see the largest gaps, what they are craving and some thought starters:

More Information and Transparency

Trust isn’t easily given, and consumers want real-time, contextual information—no matter

where or when they shop. Consumers today are also seeking more purpose and standing behind supporting brands that help them live out a promise of purpose like participating in more sustainable practices. If purpose-driven consumers remain the largest market segment (45%), then how can AI be used to make data not only more digestible but demystified and approachable?

Greater variety of relevant products through personalization

52% of consumers want to receive information, advertisements, and offerings from stores that are relevant to their specific interests, whether engaging online or instore. They want curation and products and services that are tailored to them, their interests, styles and preferences. What if brands and retailers gave every employee the knowledge of their most experienced associate in the palm of their hands to provide the most elevated in-store experience possible?

Simplification through Unified Commerce

Unified Commerce isn’t another name for omnichannel, rather it’s about thinking further about simplifying experiences for consumers with a customer centric lens. The concept is about breaking down the silos of stores teams, ecommerce teams, IT teams, call centers and bringing together a holistic brand approach. It’s ensuring a purchase, a return, an exchange, a recommendation is all so seamless that the customer never experiences friction. In a world of option overload, how can brands and retailers be more in-service of their customers at all touchpoints?

Faster Check Out and Payment Options

More than half (55%) of survey respondents said they would like more payment options, including digital wallets and peer-to-peer payment apps, with statistics rising to roughly two-thirds for Gen Zers (66%) and Millennials (65%). Personalization doesn’t stop at the moment of purchase but is rather an opportunity to set the tone for the next leg of the relationship. Customers may have been won over at the purchase moment yet friction points are still getting in the way. And it's more than just putting customers to work for self checkout but providing checkout options that empower them to do things such as ring up an entire basket at once, pay with biometrics when possible—or simply walk out the door with their purchases in hand. How can brands and retailers lean into AI to make a transactional moment an elevated brand experience?

AI isn’t going to replace humans, but it is a TOOL to help brands and retailers unlock value and deliver upon personalized needs and expectations. In one of my most recent podcasts, I sit down with Joe Dittmar , Partner at IBM Consulting and dive into demystifying the opportunities AI presents for enhancing shopping experiences: AI Reshaping the Retail Industry One Personalized Experience at a Time

#IBMpartner #AI #retail #customerloyalty - a MarketScale #podcast