December 10, 2021
The retail industry has been rapidly evolving over the last few years, and the pressure to adapt has been accelerated further by the global pandemic. With innovations in analytics, delivery, product engagement and marketing, retailers can now access new solutions, enabling them to be more agile than ever before. Retailers realise that they must embrace new technology to stay competitive in today's market. Changing customer needs have driven some of the most significant transformations in retail this year - from AI-powered robots to personalised marketing tailored just for specific demographics.
Retail stores are evolving rapidly to meet new customer demand. Retailers like Target and Macy's, are spending billions of dollars on impressive new store layouts such as the American Girl store in New York City and Bloomingdale's flagship store in Manhattan. They've also been investing heavily in more high-tech products like video analytics software to help them understand and predict user trends in stores, AR apps to drive customer engagement.
As consumers expect more engagement during their physical shopping trips, many stores have started personalising the retail experience. For example, this can be seen in clothing stores, where a customer can create a style profile and receive recommendations from the store. To do this, retailers have been using video analytics and predictive data from the different demographics of previous customers as well as social media platforms such as Instagram and TikTok to figure out what customers want from their stores. Sephora, for example, makes relevant product recommendations based on previous purchases. With physical data integrated with the sales data, they are able to send tailored offers and increase the average lifetime value of a customer.
Combining in-store and online retail experiences is the holy grail for retailers. The return to bricks and mortar won't be as we know it. In-store retail will move towards more interactive browsing experiences, a place to see, touch and try products and maybe take back returns.
A connected online-offline experience will require adopting advanced AI systems like Aura Vision's, which turns your physical stores into data so that you can measure every customer demographic and product interaction.
When retailers have insight into which products were engaged with both online and in-store, compared to purchases in each location,, they can introduce new products and make ever more relevant recommendations to their customers. This includes information such as "when", "why" and any defining habits that distinguish essential factors about their target audiences. As a result, these integrations will become increasingly relevant and will be able to make instant trending decisions based on intelligent AI algorithms.