Retailers realise that technology can take them globally and show them an array of opportunities.
The retail industry is transforming into a Retail Technology industry that raises the bar against customer experience and quality retail operation. Technologies are used to assist business intelligence and speed up the process within the industry. As a result, customer journeys and engagements are becoming increasingly personalised, setting retailers apart from the competition.
Retailers realise that technology can take them globally and show them an array of opportunities. In the current scenario, brands and retailers understand that technology investments are a must to create a sustainable and profitable business. Let us see one by one what is most preferred by most of the retailers.
Artificial Intelligence (AI) and Machine Learning
AI and machine learning technologies are used in the retail industry to improve customer service, personalise marketing, and optimise pricing.
Retailers use AI-powered chatbots to answer customer inquiries or machine learning algorithms to analyse customer data and make personalised product recommendations. AI-enabled bots collect valuable customer data that can be used to inform future business decisions.
AI in retail captures behavioural analytics and customer intelligence to gain insights from various demographics. It forecasts industry shifts and contributes to merchandising, marketing and business strategies. It impacts supply chain planning, pricing and promotional planning.
Personalisation & Customer Insights
Personalisation and customer segmentation technologies are used in the retail industry to create more targeted marketing campaigns and improve the customer experience.
Retail spaces identify shoppers and adapt in-store product displays; loyal customers get special rewards and custom shopping experiences. In addition, retailers can use customer data and machine learning algorithms to segment customers into different groups and create personalised marketing campaigns that are more likely to be successful.
Based on demographic data, social media behaviour, and purchase patterns, stores also use AI and advanced algorithms to understand what customers might be interested in. Using this data, they can improve the shopping experience and personalised service online and in stores.
Virtual Reality (VR) and Augmented Reality (AR)
VR and AR technologies are used in the retail industry to create immersive shopping experiences and provide customers with a better understanding of products.
It creates a better online experience as customers are more inclined towards staying home and choosing the best fit product for their home using AR technology. Brands that use AR technology see a 25% drop in product return, increasing their conversion to 200%. Large Format stores use AR technology for in-store navigation, offering convenience and ease of use.
Retailers can use VR headsets to allow customers to virtually try on clothes (Contactless trial) or experience products before making a purchase or use AR apps to show customers how products would look in their homes. For example, AR Technology helps to try mix-and-match options to enable a customised design to appear on sneakers.
Mobile Payment and Mobile Wallets
A mobile wallet acts with QR technology as authentication for monetary transactions. Mobile payment and mobile wallet technologies are used in the retail industry to make it easier and more convenient for customers to make purchases. A mobile wallet is a service that allows customers to sustain electronic transactions, fund transfers and donations and use digital coupons and loyalty cards when shopping in-store and online through a smartphone application provided by a service provider. Customers use their smartphones to make purchases in-store or online or use mobile wallets to store and manage their payment information. It is easier to find customers with Google Pay, Apple Pay, and Amazon Pay apps on their mobile.
Supply Chain Management and Inventory Management
Technological advancement will work as a catalyst in digitising supply chain management, bringing about changes in the existing system of delivering products and services. It reinvents the process and shares more specific data with the business.
Supply chain management is the backbone of the retail industry, and the use of technologies helps the retail sector to optimise the flow of goods and reduce waste. Retailers can use real-time data and predictive analytics to forecast demand and adjust their inventory levels accordingly or use automation and robotics to streamline the supply chain. It improves the process of predicting and managing risks. Adapting to innovation in technology adds relevant strategic insights into the business.
Internet of Things (IoT) and Sensors
The Internet of Things reduces friction and creates value for consumers and retailers. In addition, IoT is getting affordable and flexible enough for companies from small to big.
IoT and sensor technologies are used in the retail industry to improve the customer experience, optimise store operations, and gather data. For example, most retailers use sensors to track in-store customer behaviour and collect data on how customers interact with products or use IoT devices to automate store operations and improve efficiency.
Conclusion
Now, customers are more demanding and considering tech trends that help their shopping experience. Retailers want to have personalised engagements with their customers by using new technologies. Technology is unavoidable, and retailers need to align their digital strategy to give the next level of customer experience.
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