Intelligent Retail of the Future

Technology has irreversibly changed the way people shop. Brick and mortar stores are being supplemented by online stores and shoppers expect hyper-personalised shopping experiences across channels. No more are people afraid to buy on social channels, be vocal about their buying experience or expressing their displeasure if the experience does not meet with their expectations. Indian shoppers are no different. India Brand Equity Foundation (IBEF) reports indicate that India’s retail market is expected to nearly double to about USD $ 1.2 trillion by 2020 from USD $ 600 billion in 2015, driven by increased urbanisation, attitudinal shifts and increased access due to proliferation of smartphones and better internet access. 

To meet customer demands for personalisation, retailers are now moving to cognitive computing. This can help them analyse unstructured data in order to offer a vast array of options for improving customer satisfaction and increasing brand engagement. According to a recent IBM survey, 91% of retail industry executives who are familiar with cognitive computing believe it will play a disruptive role in the industry. Ninety-four percent are likely to invest in this technology soon.

Cognitive computing can help companies fine tune personalised marketing strategies. For example, e-commerce bookseller Alibris is leveraging cognitive computing technologies to offer shoppers fine-tuned and sharply-focused options based on their previous purchases. Shoppers can discover new authors and new books this way, and are leaving the portal delighted with the intuitive and highly personalized experience. In-store experiences can also be enhanced using this technology. 

Macy’s recently launched an in-store personalised shopping assistant. Shoppers can interact with the app in natural language and get specific answers in context to the store and their queries. At the back end, Macy’s can use cognitive technologies to access and analyse not just structured data such as purchase history and most-preferred store details, but also juxtapose that with insights drawn from unstructured data such as social media updates, call centre conversation histories, and in-store interactions. In addition to drawing up a far more detailed customer profile, marketing strategies can be more focused and tailored for each customer. Macy’s can also understand footfalls and shopping patterns and better manage store locations, inventory and supply chains. 

The retail sector has been one of the earliest adopters of cognitive computing, as there is direct application for retailers to refine their customer engagement and marketing strategies. From personalised offerings to aiding in inventory management, cognitive computing can have a profound impact on all aspects of retail. This future of cognitive retail is sure to be exciting.  

To know how cognitive computing will transform the retail experience at a mall near you, be there at IBM outthink tour and don’t miss out on transformational digital experiences at Digital Leaders Connect.