Welcome back to Brainless Intelligence blog! Today's aim is to discuss about AI in Personalised Shopping and how does it help to people to get better experience. The retail sector has drastic changes in the past few decades, new developments of technologies have been integrated to make those changes (Rafaeli et al, 2017). The entrance of AI positively impacts the retail landscape and shapes a better consumer experience towards shopping in technology innovated shops (Grewlan, Motyka and Levy, 2018). AI uses algorithms to collect data and tailor it to a single user in real-time, allowing for the creation of content-specific suggestions for that individual (Haelein and Kaplan, 2019). Companies can successfully produce sales processes using AI. AI in personalised shopping saves customers time searching or exploring for the appropriate product (Moncief, 2017). As a result of being exposed to a wide range of brands and products, consumers have become more demanding. They grew more aware of the importance of the goods, and their expectations are higher than in the past (Sweeney and Soutar, 2001). The term AI in the context of personalisation refers to the customers and the marketing strategy used to give the correct message to the right person (Daugi and Malik, 2017). Consumers benefit from personalised buying because they receive more accurate preference matches, personalised recommendations, and more relevant messages (Paschen, Kietzmann and Kietzmann, 2019). This innovation in AI improves response rates, loyalty, and customer happiness (Vesanen, 2007). Image Source: https://www.forbes.com/sites/jonathantreiber/2021/02/02/how-artificial-intelligence-can-be-the-key-to-loyalty-and-retention-in-2021/?sh=70a634f612aa (Treiber, 2021). Customer data is gathered as input for analysis and observation, and AI can forecast customers' behaviour and reaction. AI may acquire such valid data through interests, interactions on social media platforms, and subscriptions to loyalty programs, allowing it to make predictions about customer preferences. AI can forecast customer preferences based on the data obtained in this way. According to algorithms and feedback, AI can produce correct and accurate outcomes in personalised shopping (Abramovich, 2018). Consumers may now integrate technology as part of their shopping experience since stores are directly connected with virtual and real worlds (Abramovich, 2018). The two ways personalised shopping with Artificial Intelligence can happen: In store personalisation: Many stores introduce chatbots that engage with customers and assist them in shopping. These interactions enable AI to collect data and send and deliver personalised alerts to consumers. As a result, customers have a better purchasing experience and are more satisfied (Ameen and Anand, 2020). Furthermore, the customer's personalisation journey can begin at the shopping door, where scanners are activated, and data is recalled, then communicated to AI. The individual is then presented with a personalised shopping list based on all prior and existing information. This information is only based on consumers’ preferences and likes being examined by AI (Morgan, 2018). Image Source: https://displayforce.ai/blog/hyper-personalized_ai_targeting (Displayforce, 2020). In Online shopping personalisation: Personalisation of online shopping is more strategic and significant to apply because of technological advancements (Beath et al, 2012). AI-based retail personalisation can improve the personal buying experience. Personalised shopping sends customers direct text notifications about items based on their preferences or upcoming specials for the products they like. In online purchasing, AI may browse in a sequence tailored to demographic features or based on website history recalled. It assists in identifying and recommending appropriate items. Chatbots and voice-activated services are solely addressed to that customer, and AI automates and personalises the data. This advancement in artificial intelligence in shopping helps marketers be more aware of their customers' requirements and desires (Kaplan and Haenlein, 2019). Image Source: https://www.forbes.com/sites/benjaminlaker/2021/08/04/here-is-how-to-successfully-lead-e-commerce/?sh=501fb35e3564 (Larker, 2021). Stay tuned for last blog in Shopping releasing this week which covers more interesting information. References:
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