5 ways AI and IoT can improve the profitability of your retail store

The retail industry has been the site of many changes in recent years, many of which have resulted in less footfall and decreased profits. To contend with these changes, many retailers are seeking out new technologies that will allow them to get the most out of their locations. AI and IoT are two classes of technologies that have the potential to do just that. Read on to discover how AI and IoT tech is improving customer experiences and increasing profits in the retail sector.

Predictive analytics can improve customer experience

Predictive analytics allows retailers to collect and compile multiple data points from a customer’s social media, web browsing, and shopping patterns. This information can then be used to provide a tailored shopping and communications experience consisting of personalised product recommendations and assistance. Overall, this personalisation leads to an improved customer experience and higher profits for the business.

Intelligent pricing can retaining customers

Experts believe that flexible pricing that varies based on real-time geographic and demographic data is the future of retail pricing strategy. This is where AI comes in. For starters, it can help retailers determine what variables (eg., location, demographics, time, etc.) affect customers’ responses to different pricing models. In addition, AI can help maintain an optimal pricing model by continually adapting to changes in these variables.

5 ways AI and IoT can improve the profitability of your retail store
Many retailers are seeking out new technologies that will allow them to get the most out of their locations

Personalised promotions can boost sales

Most retailers use promotions as a means of acquiring customers, increasing both sales and customer loyalty simultaneously. Now with AI’s help, they can be more targeted in their approach through real-time monitoring and in-depth analysis of shopper behaviour. These practices allow them to send out personalised promotional messages and coupons directly to shoppers’ mobile devices at the time they’re most likely to make a purchase, thereby reducing the cost of acquisition and increasing customer satisfaction.

AI solutions can increase adaptability

Market fluctuation, changing consumer preferences, constant innovations – retailers today are forced to walk a shifting path. AI-powered analytic systems can help them navigate it by providing real-time information that brings aware important changes to the attention of management while there is still time to adapt and capitalise. With the help of AI, retailers are better equipped to take proactive measures that boost sales and reduce losses in times of fluctuation.

AI analysis can fine-tune segmentation

Consumer shopping habits have changed significantly over the last few years thanks to e-commerce, social networks, and other game-changers. To carve out their piece of the market, retailers need to be able to craft strategies that woo specific demographics with a nuanced understanding of their needs, preferences, and pain points. AI allows retailers to capture this information thanks to its ability to learn about consumer behaviour through analysing data gathered from different sources like internet search engines, online reviews, call centre records, and observation. This information can be used to create optimised and robust customer segments, which in turn will help retailers improve their profitability by serving the right products to the right demographics.

AI and IoT technologies will undoubtedly play a major role in shaping the future of retail. They’re already helping countless retail establishments ranging from convenience stores to clothing shops make smarter decisions that lead to higher profit margins. If you’re looking for a technology that has the potential to overhaul the way you do business, look no further.

Further Reading

If you enjoyed this post: 5 ways AI And IoT can improve the profitability of your retail store, be sure to check out our recent IoT and AI pilot with Adnams here: AI and IoT for retailers how physical stores can enhance customer experience

Proven benefits of Alertiee technology

Alertiee will help you realise missing sales opportunities, stores’ performance based on conversion rate, and stores’ sales hotspots areas.

We support and guide you through how you best convert both inside and outside traffic opportunities by supplying you with options around service risks and how to serve your existing and potential new customers best.

Alertiee will help you to provide a harmonious customer experience across your omnichannel business. Our technology enables customer experience, marketing and retail teams to close the gap between customers’ digital experience and their physical experience.

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Sahand Malek