Introduction
The brick-and-mortar industries offer consumers a limitless variety of choices and at the same time, they continue to evolve. Artificial Intelligence (AI) and machine learning (ML) have great applications for the brick-and-mortar industries. Many players in these industries have already started investing deeply in these new technologies. As new technologies keep emerging, customers are becoming more demanding, leading to fierce competition among brick-and-mortar businesses.
When it comes to brick and mortar businesses, besides offering high-quality products, consumers are demanding an enhanced customer experience, and that’s what’s making the entire difference. With the rising of new technologies, businesses in the brick and mortar industries are looking forward to the future to avoid getting outdated. To stay relevant, businesses must offer a new in-store experience for their customers with the help of AI.
Let us look at how AI/ML is changing the brick-and-mortar industries.
Enhanced interaction with customers
Artificial Intelligence is enhancing the interaction between retailers and their customers by capitalizing on new tools such as machine learning and cognitive computing technology. Consumers can receive answers to their questions on their mobile devices. With accurate information on their mobile devices, consumers do not need the help of a sales associate when shopping around and making a purchase.
AI is becoming smarter every day by recognizing data patterns and customer behaviour, thus providing accurate information such as product recommendations, suggestions, and even personalized customer support.
AI in physical stores can help customers get around a large store and find products easily. Some retailers have already invested in robots in their physical stores which help customers navigate the store, thus improving both customer and staff experience. This provides a unique in-store experience that goes a long way in retaining customers and getting new customers to shop.
Demand forecasting
Businesses must continue to meet the increasing demands of customers if they truly want to achieve impressive business results. If you can’t satisfy demanding customers, you might end up higher inventory costs and even lose customers to your able competitors. AI can precisely and effectively predict demand for certain products by collecting insights from customers.
With effective demand forecasting, businesses can effectively plan their production and optimize their supply, which will help them satisfy the increasing demands of customers. This, therefore, sets businesses up for future success and prosperity as businesses can retain existing customers, gain back former customers through personalization and even attract new customers.
Enhanced inventory management
Businesses need effective and efficient inventory management to avoid unnecessary inventory costs. AI is leading to better and easier inventory management. Brick and mortar businesses can use machine learning to forecast the future needs of the customers, thus minimizing the likelihood of having too much or too little of a product in stock at a particular time.
Retailers with many branches in different locations can effectively manage them through this data-driven approach, thus cutting on costs.
Conclusion
At 7i Capital, we have experienced some of these changes happening in the brick-and-mortar businesses across the globe enabled by AI. AI in the new future will be the standard in brick-and-mortar businesses. Customers are becoming increasingly demanding, and AI is enabling businesses to improve their customer experience and at the same time cutting costs and improving a business’ competitive edge.