Innovation in Retail | AI creates a rich, hyper-personalized shopping experience

Publish date:

Today, online retailers are better able to offer personalized products and offers using data analytics and artificial intelligence. Algorithms are a very suitable way to create a rich, hyper-personalized shopping experience

The process of making stock management and replenishment decisions can be enhanced by using big data, AI, and machine learning

AI

Because we have entered the era of data and have almost unlimited computing power at our fingertips, algorithms are in their element. They can help filter all that data and become neural networks to help us make complex decisions. This may cause the black-box effect. People still find it difficult to fully trust software, much less algorithms. Will algorithms determine everything in the near future (as in the Matrix) or will they become our best friends in the new, increasingly complex, world order?

Prediction

Algorithms may hold the key to more accurate predictions. Algorithms can handle multiple data sources (internal and external), using different parameters and models to predict the best outcomes for replenishment and never get tired doing so. As an example, AI is becoming a best pall of Albert Heijn.  The Netherlands’ largest supermarket chain uses AI models to more accurately predict the replenishment needs of their stores. The process of making stock management and replenishment decisions can be enhanced by using big data, AI, and machine learning. These technologies make it able to build algorithms that provide improved visibility and accuracy. As a result, less out of stock is created, and there is less waste as the excesses of “too much” or “too little” are reduced.

ai, artificial intelligence

Image Source:

Personalization

The idea of personalization remains key to future, sustainable success. Today, online retailers are better able to offer personalized products and offers using data analytics and artificial intelligence. Algorithms are a very suitable way to create a rich, hyper-personalized shopping experience. Physical retailers that also have an online presence and can integrate their data from all sources have a head start. It is not an easy way, as you constantly need to pivot and tweak to get the AI to work for you and meet your targeted customers’ needs. But when done properly with a healthy dose of persistence, success will be yours. This leads to better engagement, retention, and long-term loyalty.

Feel free to reach out to us for more information or to arrange a workshop on AI working for you in relation to engagement, retention, less out of stock, and less waste.

Listen to my latest podcast here:

 

This blog is part of the “Innovation in Retail” series.
Check the others here:

Related Posts

Capgemini Invent

Touchless Retail: What the Rest of the World could learn from China’s new ways to shop

Yongliang Yang
Date icon April 9, 2020

Chinese retailers and brands have brought to life “Touchless Retail”, a new way to serve...

Environmental sustainability

Looping you in: the carbon cost of email

Gunnar Menzel
Date icon April 9, 2020

You might be wondering how much carbon an email can possibly cost. Of course, the answer is:...

Artificial Intelligence

Simplification and standardization – throwing away the paper

Elle Cardenas Sanchez
Date icon April 9, 2020

Making the switch from paper to digital copies of important documents not only cuts down on...

cookies.

By continuing to navigate on this website, you accept the use of cookies.

For more information and to change the setting of cookies on your computer, please read our Privacy Policy.

Close

Close cookie information