Posted on : 2024-04-14 20:27:28
Article : Good morning Monday Management solution for the TASK 289- Collaboration between retailers and technology companies drives AI innovation and growth in the FMCG industry.
From hawkers to roadside stalls to branded showrooms to ecommerce portals, the process of selling consumer goods and services through retail channels has followed an interesting evolution over the years. It is worth noting that with every refinement, the task has continually become more complex and specialised, requiring newer techniques by the sellers. In the age of customer-centric businesses, the role of the retailer becomes extremely critical as the last link in the supply chain; for consumer-facing businesses this leaves no scope for errors and inaccuracies. In an immensely competitive market which spoils the consumer for choice, brands must embrace AI and data-driven solutions to deliver the best customer experience while keeping the costs low. AI can be used to analyse customer data and behaviour to develop targeted marketing campaigns and sales strategies. For example, AI can be used to predict which customers are most likely to make a purchase or respond to a marketing campaign.
Here are five case studies that demonstrate effective and innovative AI use by Indian retail brands.
Video analytics and emotional AI for Bata: The footwear retail company Bata deployed an AI-based video analytics solution to improve the company’s in-store sales, operations, and customer satisfaction. Developed by Agrex.ai, the solution utilised the store’s existing video infrastructure to implement data harvesting and insight generation on smart conversion and audience segmentation. An “Emotions Chart” adjudged the number of customers showing interest in the merchandise and the type of merchandise. The store compared the responses to products and determined which products evoked happy/satisfied emotions.
Personalised customer engagement program for Blackberrys: The menswear fashion chain Blackberrys utilised AI to raise its revenue with omnichannel engagement. Capillary Technologies implemented the Engage+ platform for Blackberrys powered by its proprietary AI platform – Zero AI. The adoption of Machine Learning and Artificial Intelligence algorithms created the best campaigns for Blackberrys. The platform’s advanced algorithm automatically picked the best channel mix for a customer by analysing multiple factors like Reachability, Responsiveness Score, and Conversion Probability. Journey Builder enabled Blackberrys to automate engagement across the consumer’s purchase lifecycle and communicate the next best message.
Coca-Cola AI Case Study- One example of AI being used for sales and marketing is the case of Coca-Cola. The company implemented an AI-powered marketing platform called Albert to help it optimise its digital advertising campaigns.
Albert uses machine learning algorithms to analyse customer data and identify patterns and insights that can be used to optimise digital advertising campaigns. The platform is able to make real-time adjustments to advertising campaigns based on factors like customer behaviour, preferences, and purchasing history.
Since implementing Albert, Coca-Cola has seen significant improvements in its digital advertising campaigns. The platform has helped the company increase its return on investment (ROI) by optimizing ad spend and targeting the most profitable customer segments.
End point- While AI has a huge potential for FMCG brands to scale and improve, its widespread adoption also raises concerns about data privacy and ethical considerations. The heavy reliance on consumer data for insights also means transparency is a key priority in AI. The future of AI in the retail industry will increase as collaboration between retailers and technology companies drives innovation and growth in the industry.AI (artificial intelligence) is disrupting all industries, and the retail industry is front and centre. Leading retailers have been experiencing and engaging with an influx of AI in the retail market for some time now as it influences consumer shopping experiences and shapes retail operations. Research tells us that global AI in retail market size is expected to hit USD 45.74 billion by 2032, with a compound annual growth rate of 18.45% from 2023 to 2032.
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