This article was first published on Stories by Nucleus Vision on Medium
There are many reasons why people stay loyal to a retailer. It may be because of the quality of their products, pricing or even because of the convenience the store offers in terms of its services. What’s important to note is that if two stores sell the same product at the same price, the service will become the differentiating factor. In many cases, customer experience can make up for price differences.
For example, take a restaurant that has two sections- an air-conditioned section and a non-air conditioned section. The food served in both sections is the same but the price is lower for the latter. On a hot day, which section would you choose to be seated in?
Can AI Make A Difference?
Customer experience is the most important factor in brand loyalty. Thus, it isn’t surprising to note that retailers are constantly trying to find new ways to improve customer experience. Whether it’s an online or offline store, this is where Artificial Intelligence or AI can help.
Customer Insight-Driven Personalization
Why do you trust one friend more than another to go shopping with? Usually, it’s because you assume that this friend knows not just one facet of your personality but who you are as a whole. Personalization or being able to preempt the needs of a customer is very important. This is typically based on the customer’s purchase history.
With AI, personalization can go a step further. AI mines data from many different sources and analyses it to create comprehensive customer profiles. It then uses this data to personalize the customer’s experience with the retailer.
For example, say you’re excited about an upcoming trek and posted something about it on your social media accounts. AI can process this information along with the information from your purchase history to show relevant ads of ...
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Stories by Nucleus Vision on Medium