Originally published on: The Ai Journal 

In a recent report published by Statista, 73% of retailers claimed to currently be using artificial intelligence (AI) in their operations. With this number expected to increase throughout 2024 – 15% of retail brands claim to be planning to implement AI in the next 12 months – we could soon see a significant change within the industry.

AI is designed to increase productivity, efficiency, and revenue for businesses, and the technology is having a big impact on the retail sector. We have watched in anticipation as the technology has developed over the years, and with AI now tied in with machine learning, its current capabilities are taking the world by storm. In 2023, we saw Generative AI capture the attention of consumers, and the technology’s boom over the past 12 months has accelerated adoption rates in B2B settings.

While it makes its way through several industries, AI also has the potential to play a significant role in shaping the future of retail. As advancements in AI become further sophisticated, retailers can use the technology to assist employees in a wide range of internal processes, from delivering personalized shopping experiences to streamlining supply chain operations. Its versatility allows retailers to minimize the time taken to perform tasks through automation and use the technology to scope and analyze market trends to help retailers make better decisions, faster. 

Streamlining Inventory Management Using AI Tools 

AI tools can help retailers streamline a number of their day-to-day operations, particularly when utilized to relieve retailers from labor-intensive processes such as inventory management.

Traditionally, inventory management practices require employees to take manual stock counts in-store, checking which items are running low and re-ordering products based on current levels. The challenge with this traditional method is that it not only takes a significant amount of time for one person to go through every individual item, but it is also prone to human error. In-store associates can take hours to count backroom stock, compromising a retailer’s ability to provide high-quality customer service during the ongoing labor shortage. Furthermore, with the risk of human error, there can be no true visibility of inventory accuracy. As such, the decisions made from manual counts become unreliable. 

AI alone cannot solve this issue. However, when deployed alongside an effective inventory management technology – such as item-level RFID – retailers will not only gain real-time, accurate insight into their stock levels, but AI will leverage the data gathered to make instant stocking decisions for the retailer. When provided with data around sales, orders, and existing inventory, AI can streamline the inventory management process by making recommendations about anticipated inventory requirements. 

This process can be taken another step further. Combining key market trends with customer buying behaviors also allows AI to assist retailers in long-term inventory decisions such as forecasting. Not only will AI recognize stock levels, but it will also use previous sales patterns to predict future consumer demands and react accordingly to ensure retailers are ready for any anticipated trends. This allows retailers to maintain optimal inventory levels and minimize waste. It also helps to maximize customer experiences, with accurate availability and fulfillment information shared with customers in real time.

AI’s Role in Improving Customer Experience

High-quality inventory management practices can play a significant role in enhancing the in-store customer experience. While these developments help reduce customer wait times and improve in-store service, retailers are now also enhancing their efforts through increasing personalization.

Customer Relationship Management (CRM) tools can be used to collect relevant data from customers. The technology allows retailers to gather relevant customer information such as purchase and browsing history to understand their evolving preferences and needs. Retailers can then leverage AI in tandem with their CRM platforms to create truly bespoke experiences.

While CRM on its own is already helping retailers provide in-store personalization, AI can enhance these efforts, combining context with existing consumer data. Using data collected from outside sources, such as upcoming weather predictions to wider national events, AI can expand on basic details such as name, location, and purchase history, by making assumptions about consumers’ lifestyles, analyzing their purchase patterns to gain a deeper understanding of customers, such as the preferred hobbies and sports, or whether they have children or pets. Predictive analytics can then help make accurate suggestions based on the profile the retailer has curated for each individual.

Retailers can use this information to their advantage by providing targeted offers on products their consumers buy regularly or are likely to be interested in. Not only will this push consumers to follow through with their purchases and increase revenue, but it will also increase satisfaction levels. Providing a truly bespoke in-store experience where store associates have access to this information increases the chances of customer retention and loyalty moving forward.

Stepping into the Future

Technology has evolved the way consumers shop today. With same-day delivery and pick-up available, omnichannel fulfillment options, and real-time visibility of stock, today’s shopper is accustomed to speed and convenience. 

AI only enhances a retailer’s capability to deliver this level of efficiency and seamlessness to its customers. With accurate personalization and improved fulfillment, retailers can deliver bespoke in-store experiences that exceed customer expectations. With optimized inventory practices, retailers can avoid overstocking and stockouts, and AI’s capabilities of machine learning to deliver predictive analytics help retailers gain a competitive edge within the market, increasing satisfaction, revenue, and efficiency.

Keep it Human

The possibilities with AI are endless and will likely play a significant role in the transformation of the retail industry. Retailers are acting quickly to invest in AI, with many planning to incorporate it into their operations within the next year. With the wide range of opportunities unlocked by the technology, retail operations, and customer experiences will only continue to improve.

While the potential of the technology promises a huge number of opportunities, retailers must remember that the most important service they can deliver to their customers is a human one. While technology acts as an enabler to improved processes and experiences, it should never be used to replace the human connection within retail. It should simply exist to enhance an in-store associate’s ability to deliver high-quality customer experiences that leave customers feeling valued.

Author: Amber Hovious

With nearly two decades of experience in corporate and channel sales, as well as marketing, Amber Hovious leads Teamwork Commerce’s fast-growing retail software organisation in its global expansion. Hovious joined the company in January 2013, and in her current role, is responsible for developing and managing Teamwork Commerce’s channel programs, partnerships and strategic marketing campaigns.

Victor Borjas 

Data Analyst

Continuing with our blog series – Five Minutes With… we get to know Victor Borjas, Data Analyst, based in our Mexico office. From his entrepreneurial venture to his debut in retail tech, Victor explains how his passion for sports and tech provided him an opportunity to work at Teamwork Commerce.

• What is your role at Teamwork Commerce?

I am a Data Analyst at Teamwork Commerce. In this role, my primary responsibility is to ensure seamless integration for our clients, overseeing the entire process from initial design to implementation and providing post-go-live support to guarantee their satisfaction.

• Explain your career path. What inspired you to join the retail tech industry?

My journey into the retail tech industry stems from my passion for sports. Around a decade ago, I ventured into entrepreneurship, starting a business related to sports. To realize my vision, I immersed myself in understanding the intricacies of retail, eCommerce, and technology. Over time, I expanded my expertise by managing online stores and business sites for friends and clients. In 2020, I was fortunate enough to be approached by Teamwork, offering me the opportunity to merge my passion for sports with my skills in retail technology.

• What is your favorite thing about working in the retail industry?

The allure of the retail industry lies in its dynamic nature. It’s an arena where brands are constantly innovating to enhance customer experiences. The perpetual quest for novel solutions ensures that there’s never a dull moment. Being part of this ecosystem means evolving alongside it, which is incredibly fulfilling.

• What is the best career advice you have ever received?

The best career advice I’ve received is to find joy in what you do. Success is not just about achieving goals; it’s also about deriving fulfilment from the journey itself.

• What is your favorite thing about working at Teamwork Commerce?

The standout aspect of working at Teamwork Commerce is the unwavering professionalism and trustworthiness of the team. Collaborating with individuals who exude reliability and integrity fosters a sense of satisfaction and camaraderie. From leadership to every team member, Teamwork is composed of remarkable individuals committed to excellence.

• Who are your key role models/inspirations?

I don’t adhere to a traditional concept of having a specific role model. While I acknowledge the presence of outstanding individuals and professionals in the world, I firmly believe that each person has the potential to be their own role model. By staying true to one’s beliefs and aspirations, anyone can inspire themselves and others around them. It’s about personal commitment and dedication to one’s goals that truly drives inspiration.

Rapid Fire Round…

What is your favorite…

• Book: “Aztec” by Gary Jennings

• Movie: “The Super Mario Bros. Movie”

• Album:“Random Access Memories” Daft Punk

Most people don’t know that I…

I was once an avid runner, cyclist, and triathlete. Ultra-marathons, Ironman competitions, and various endurance events were a significant part of my life. However, with my current focus on being a full-time father, the Sport Billy version of Victor is currently on pause.

In my spare time, I…

Primarily spend time with my daughters. Whether it’s playing with them, caring for them, or imparting valuable lessons, being present for them is my top priority. Occasionally, I manage to sneak in some time for tennis or padel tennis.

Originally posted on: Forbes

Sergey Kozhevnikov, VP of Product Development at Teamwork Commerce.

As 2024 settles into its stride, few retailers are hoping for a repeat of 2023. Rapid inflation combined with low consumer confidence played out against a backdrop of geopolitical uncertainty and heralded challenging times for both brick-and-mortar retailers and e-commerce practitioners.

Most will be hoping that 2024 ushers in a new dawn, and that is borne out by Deloitte’s ConsumerSignals research, which shows renewed consumer financial stability, spending intent comparable with 2021 levels and evidence of decreasing retail caution.

However, many of the obstacles the retail industry faces this year will be familiar. Ever-tightening margins and a cut-throat retail environment mean retailers must take full advantage of every competitive edge they can find. As is often the case, technology offers solutions to an increasing number of retail problems.

In this article, I’ll look at three of the biggest challenges affecting retail as the industry wrestles with a new year and an uncertain economic landscape.

The Growth Of ‘Shrink’

Throughout 2023, shrink was a major issue for retailers, and it’s not going away. In May of last year, Target reported that it expected to take a $500m hit to profits in 2023 due to missing inventory.

While shoplifting is a major contributing factor, shrink—a decrease in retailer inventory for reasons other than sales—isn’t only attributable to nefarious customer behavior. Employee theft, administrative errors, vendor fraud and operational loss are all leading causes. Organized theft from stores is a relatively new phenomenon but one that’s reportedly been responsible for store closures in its own right.

Some commentators claim that retailers are using shrink as a catch-all to hide poor strategic decisions and mismanagement. What’s clear is that shrink isn’t a new issue. What’s new is how retailers can approach it.

We’re set to see a shift in the way retailers assess and take preventative measures to counter shrink over the coming years. Reducing loss will be a key focus of retailers in 2024, but beyond CCTV, increased security, frequent stock checks and other traditional methods, technology provides another answer to this issue.

RFID product tagging, for example, has become commonplace over the past decade, and where it has been adopted, it’s working for retailers. Accenture’s RFID in Retail study found that 80% of retailers felt that RFID offered benefits that couldn’t be substituted by any other technology. Because RFID offers end-to-end inventory tracking, retailers can better pinpoint where losses are occurring, and take action to recover losses. It can benefit customers, too, as an RFID-powered self-checkout system can offer near-instantaneous item scanning and payment.

The Problem With AI

The specter of increasingly AI-powered customer experiences has been much discussed over the past 12 to 18 months. In retail, as with virtually every other industry, AI has been mooted as a silver bullet for all ills. In reality, while AI is well-suited to a large number of tasks, it currently lacks the critical thinking and empathy of an experienced human customer service representative.

That said, AI chatbots and voice bots can offer a way to query triage, directing complex questions directly to a human but keeping mundane, repetitive tasks away from already taxed CS teams.

Those repetitive, hygiene tasks such as order tracking, returns, refunds and basic FAQs are a time-sap to human team members but are bread and butter to an AI-powered chatbot assistant. As with all AI solutions, however, there is one major potential flaw: If your data is incorrect, corrupt or incomplete, AI can make a drama out of a crisis. An unsatisfactory customer service experience is one thing, but an ill-informed AI team member could potentially deal considerable reputational damage if allowed to communicate with customers unchecked.

Any AI solution needs the eyes of an experienced customer service employee to ensure the worst doesn’t happen. Equally, even if the solution is providing first-class service, it always pays to have the experienced eyes of a veteran customer service representative on hand to fine-tune direct-to-customer responses.

Hybrid Customer Experiences

Where e-commerce was once believed to be the cause of the end of in-store shopping, it’s fair to say that hasn’t played out as many imagined. In reality, online shopping is making bricks and mortar stores a central piece in the omnichannel shopping puzzle. The result? A clicks-to-bricks shopping culture, where buyers choose a variety of different routes to retail fulfillment. Yes, the journey may often begin online, but delivery isn’t always completed by a third-party courier.

In fact, many retailers are finding that fulfillment from stores is a more profitable option than the complex and costly process of last-mile distribution. With this realization has come a revolution in the way brick-and-mortar stores fulfill orders and a new era in customer service expectations. Far from wanting a wholly online experience, many customers prefer to buy online, pick up in store (BOPIS) and buy online, return in store (BORIS), giving them a human connection with a brand, even if the initial browsing and purchase are done online.

Making this a seamless experience is a key part of the customer journey. While more profitable for retailers, if it doesn’t work for consumers, this in-store trend will be a short-lived renaissance.

Paying Dividends

As with all technology solutions, first-mover advantage is a powerful incentive, but organizational change and board-level buy-in remain a barrier to entry for technologies like RFID and AI. Equally, the cost of implementation is often a blocker to widespread adoption.

While bottom-line impact may be the primary concern for C-suite executives, offering a customer-first approach to the retail experience will undoubtedly pay dividends in both senses of the word.

Originaly posted on: MyTotalRetail

By Amber Hovious

A human touch holds significant value in the retail customer experience and is important to get right. When done well, a customer’s interaction with in-store staff can increase sales opportunities and drive loyalty. However, a poor interaction can result in the complete opposite. Recently, technology adoption in retail has increased, with 88 percent of senior retail leaders feeling digital transformation is critically important. However, a human touch still remains valuable.

According to Statista, 86 percent of consumers stated that it was important or very important to them that they could contact a real person when communicating with a business. While technology is important to increase efficiency and drive cost savings, its use on the shop floor should be focused towards enhancing human interactions between in-store staff and visitors.

From enabling associates to seamlessly serve customers and conduct transactions from any part of a store to providing real-time inventory visibility, technology can ease the burden on in-store associates while helping them deliver high-quality experiences.

The Role of AI in Empowering Shop Floor Staff

Whether providing personalized recommendations or offering individual loyalty discounts, it can be time consuming for shop floor staff to complete each of these seamlessly without the help of technology. Artificial intelligence algorithms can help staff streamline their efforts related to a number of retail elements such as personalization, pricing and inventory.

By analyzing customer purchase history, browsing behavior, and preferences stored in a CRM tool, AI can identify shopping patterns and trends. Based on the analysis, AI can then provide tailored product recommendations and promotions for individual customers. With just a tap of a button, in-store staff can access valuable information provided by AI-powered CRM tools. This allows them to personalize each interaction with customers seamlessly.

Additionally, AI-powered solutions can also adjust pricing in real time based on factors such as inventory levels, seasonal demand, and competitor pricing changes. This can significantly reduce the time associates spend manually analyzing data every time they interact with a shopper. As a result, shop floor staff can seamlessly deliver the kind of experience shoppers demand.

Related story: How Streamlining Operations Can Generate a Competitive Edge

Easing the Burden With Mobile POS

Today, innovative mobile point-of-sale (POS) solutions can help staff swiftly process in-store transactions from any part of the store. Associates can complete checkout, check inventory availability, and seamlessly facilitate omnichannel offerings such as buy online, pick up in-store (BOPIS) using their mobile POS systems.

The flexibility and mobility provided by mobile POS software enable store associates to move freely around the store, assisting customers on the sales floor, in fitting rooms, or even at special outdoor events. As a result, staff can quickly address customer needs and boost satisfaction. Mobile POS can also create increased opportunities for upselling and cross-selling additional items for staff while interacting with customers. Associates can easily access product information, promotions, and loyalty program details to drive additional sales and increase average transaction value.

Ultimately, the burden on staff to deliver top-tier customer service, streamline operations, and drive sales can be eased by providing them with the flexibility, mobility and efficiency of mobile technology. Meanwhile, retailers with busy stores can leverage RFID technology to empower their staff to deliver exceptional customer experiences.

How RFID Helps Staff Add Value to the Customer Experience

There’s no denying that RFID plays a critical role in the retail supply chain. However, advancements in the technology have also brought it to retail shop floors. The technology helps staff track in-store inventory, locate items, and, as a result of faster service, improve customer experiences. When it comes to enabling staff to add more value to the customer shopping experience, they must be provided with technology that can free them from day-to-day repetitive tasks. This is where RFID-powered self-checkout systems can also come into play.

RFID-powered self-checkout systems can automatically scan all items placed in the checkout basket within a few seconds, eliminating the need for retail staff to manually scan products and complete checkout transactions for customers. This provides retail staff with more time to provide valuable customer service. Associates can meet and greet shoppers with personalized conversations, help them locate items in-store, answer queries related to stock, and offer product recommendations, creating a top-tier shopping experience for customers.

Additionally, with reduced checkout duration and streamlined processes, an increased number of transactions can be completed during operating hours without putting any extra pressure on staff.

The Key to Standing Out

While tech advancements are critical to helping retailers cater to evolving customer needs, the value of a human touch cannot be overlooked. Retailers that can empower their staff to add high value to the customer shopping experience can differentiate themselves and significantly drive loyalty.

Amber Hovious is Vice president of Marketing and Partnerships at Teamwork Commerce, a leading omnichannel solution provider.

Time flies, and though it might feel like yesterday retailers were planning their strategies for the 2023 holiday season, the first two months of 2024 have already passed by in the blink of an eye. As we navigate through the beginning of the year, several UK retailers face challenges while many show significant signs of growth.

In our latest Retail in Review blog, we take a look at how UK brands are navigating through the initial two months of 2024 in the retail industry.

People in Focus: UK’s Noteworthy Retail Appointments

At the beginning of the year, the UK retail panorama witnessed a number of people moves and appointments, from C-level to Director-level. John Lewis appointed former fashion boss Peter Ruis to lead the department store chain and Pets at Home hired former Sainsbury’s exec Anja Madsen as its new COO for retail. Former Poundland Finance Director Dave Williams was also in the limelight as he joined Matalan as its new CFO, replacing Stephen Hill, who stepped down after 23 years with the company. These changes at the C-level only underscore the role of dynamic leadership in driving growth.

With digital expertise becoming more important to brands, the last couple of months saw retailers leveraging talent acquisition to strengthen their digital capabilities and stay competitive in the online space. Dunelm strengthened its boardroom’s digital expertise, bringing in ex-Amazon director Ajay Kavan and Daniel Taylor, the CEO of Paddy Power owner Flutter, whereas Asos named Anthony Ben Sadoun as its new Executive Vice President of digital products. It is clear that technology is vital, but human expertise also plays a critical role in the success of customers’ digital journeys.

Navigating Challenging Times 

While the industry saw several hirings at leadership levels, a number of brands announced their plans to reduce workforces and shut down stores. The Body Shop announced that it will be closing half of its 198 stores in the UK and cutting the size of its head office, leading to hundreds of job losses. Farfetch is also set to cut up to 30% of its total workforce as global e-commerce retailer Coupang takes ownership. Meanwhile, John Lewis is reportedly considering 11,000 job cuts as part of a major turnaround. These workforce reductions only reflect the challenging times being faced by global retailers. Amidst this challenging landscape, the UK entered a technical recession.

To effectively deal with these challenges and increase sales, retailers need to deliver high value for money. From competitive pricing and loyalty programmes to top-tier and exclusive customer service, brands need to make sure they create their unique competitive edge. To better understand customers and stand out, brands need to take a holistic approach to their retail technology. British retailers can take inspiration from US markets. Reiss recently deployed Mobile Point-of-Sale (POS) technology in its US stores to streamline in-store operations and deliver top-tier customer experiences. By using technology to deliver unparalleled customer experiences, retailers can increase sales opportunities.

Growth Continues

While some brands made job cuts, many others experienced significant growth, indicating consumer confidence despite economic fluctuations. According to the latest Office for National Statistics (ONS) report, January witnessed the largest monthly sales rise since April 2021, as retail value sales grew 3.9% after a record fall in December 2023. This rebound in sales reflects a potential recovery in the retail market. 

A number of brands in the UK seemed to have a great start to 2024. Pandora’s revenue hit £1.2bn and the brand announced 5% growth in its European market, demonstrating adaptability in the competitive landscape. Meanwhile, Shoe Zone announced that its profits had surged almost 20%. As a result, the retailer is expecting to open 25 new shops in 2024 and complete a “minimum of 25 store” refits. This reflects the retailer’s strategic approach to meeting evolving consumer demands.

Primark is set to invest a further £75 million into its UK store estate this year, taking its total investment to more than £100 million in its UK stores in 2024. As a result, the retailer will create 700 new jobs as it marks its 50th anniversary on British high streets. Primark’s continued investments in the UK market signal confidence in future prospects.

Looking ahead

While the recession news created uncertainty within the market, the UK retail landscape shows promising signs of growth. Although consumers are resilient, they have also become more demanding and fastidious about their purchasing decisions. Retailers who are agile and continue to meet evolving consumer expectations are likely to thrive in the industry.

Want to understand how technology can help you increase customer retention? Get in touch today!