Artificial intelligence (AI) is one of the most promising technologies for retail. According to market firm Tractica, global AI revenues will see a massive growth to $36.8 billion in 2025. AI capabilities have reached the level where brands are starting to take them seriously. To make a winning formula, now retailers just have to add their most valuable asset: customer experience. So, what are the reasons to adopt AI solutions today?
Vast Options for Data Analysis
Modern businesses are heavily dependent on their metrics and data. With AI, they can process this data in an entirely new way, discover eye-opening, counterintuitive insights, which will help to inform new strategies and create a better shopping experience.
Personalized Customer Service
Brand heritage and quality are no longer enough for tech-savvy, forward-thinking consumers. Nowadays, they want personalized, exceptional shopping experiences, which not only match their lifestyle but also prompt the right kind of emotions. AI provides a better understanding of people’s expectations, letting brands fine-tune their marketing campaigns and offers. Based on historical data, AI can predict user behavior and suggest what could be done to improve a certain scenario.
Better Product Presentation
There are efficient AI tools to track online user behavior. They calculate how, when, and for how long customers interact with a product. All that knowledge allows retailers to improve product visualization, choose attractive angles, and so on, all of which help to improve conversion rates.
Keeping Up With Competitors
Incorporating technologies like AI might become a game-changer for retailers sooner than you think. And those retailers that refuse to adopt it will eventually be left out of the game. That's a mistake you cannot afford to make.
What Does it Actually Do?
Let’s have a look at one of the studies conducted by Cappasity together with U.S.-based luggage manufacturer and retailer Samsonite, and with the help of an AI service for 3D analytics.
The Cappasity AI service analyzed over 37,000 customer interactions with 3D product images on Samsonite's website. It tracked the way potential customers interacted with 3D product images on the site and presented the most telling metrics on a heat map. It also calculated the time spent on the interaction, detected zoom-in points, most popular angles, and more. The study showed that 20,000 users activate 3D views on the Samsonite website every month, and that 80 percent of all the visitors who select a 3D View actively interact with it.
It was observed that the most attractive details of the Samsonite luggage are the handles, combination locks and zippers. While wheels — seemingly very significant product details — often go unnoticed. It’s unexpected and certainly important information which, if applied wisely, might boost sales considerably. Imagine that, instead of highlighting the wheels on the product page, Samsonite would concentrate more on locks and zippers.
A Tool for Luxury Retailers
Despite political and economic instability, 2019 showed an apparent growth for the luxury goods industry, which reached an estimated $1.4 trillion globally. But wealthy customers demand special treatment. To provide that, retailers have to dive deep into the data with the best analytics tools available. This might be the only way to deliver truly personalized content.
AI-gathered data helps brands obtain unique insights into their customers’ behaviors and preferences. This, in turn, makes it possible to improve visual elements, design the perfect product page based on your audience’s taste, and create more relevant ad campaigns.
Related story: Why 3D Product Image Technology is the Future of E-Commerce
Kosta Popov, CEO and founder of Cappasity — the company providing an easy and scalable platform for creation, embedding and analysis of 3D and AR/VR content — has 20+ years of experience and a successful track record as a software company CEO. Under Kosta’s lead, Cappasity has so far successfully raised $6.4M. Kosta is an expert in 3D technologies, SaaS solutions and mobile applications and was named one of the top innovators by Intel Software.