The AI revolution continues to change the retail landscape. With more than 2,700 shops shut in the first half of the year, how long until traditional retailers will implement technologies to improve their declining revenue and customer loyalty?
Another big question faced by brick-and-mortar retailers is whether prices should be the same online and in stores. There is no right answer here, but there is a feature that retailers can use to drive sales and customer loyalty, and that is a dynamic pricing strategy.
What Is Dynamic/Personalised Pricing?
The concept of dynamic pricing is the ability to offer the optimal price at the right time to the right customer.
Nowadays dynamic pricing is based on the real-time changes made in product supply and demand or competitor activity. Dynamic pricing might be a common thing online, but in stores is not so popular. A survey by Planet Retail shows that 40% of retailers were using electronic shelf labels (ESL) to display prices, promotions and detailed product info, or planned to use them in the next 12 months.
Although retailers recognise that inaccurate pricing and promotions are some of the reasons why they lose customers in-store, many admit technology is one of the challenges they face.
KnowledgeKube technology can be used to connect these offline to online environments, as well as legacy systems faster than any traditional development methods. KnowledgeKube empowers retailers to think differently, helping to provide physical shopping experiences, but with the benefits provided by online systems.
Examples of Artificial Intelligence in Retail
Traditional retailers struggle to match the agility of online rivals, the apparent issue being changing prices requires altering labels. In recent years we have seen the trial of smart shelf technology with digital price displays that allow stores to offer deals at different times of the day.
Leading supermarkets across the UK have already introduced electronic pricing systems in select stores and just last year we saw Marks & Spencer conducting a trial selling sandwiches at discounted rates during the morning rush hour to encourage commuters to buy their lunch early.
Across the US, Coca-Cola has been using Google's cloud platform to send videos and discount offers directly to customers' smartphones in Albertsons grocery stores. Alongside changing thousands of prices simultaneously, shops can use the smart shelf technology to convey information about stock availability, social media reviews and, as in the Coca Cola’s case, connect with smartphones to send micro-targeted promotions.
The imminent arrival in the UK of Amazon Go is another sign of the change driven by customer expectations. The concept is that cameras and sensors track your movements through the store after you’ve scanned your Amazon account on entry. The system, which also uses computer vision and other AI-assisted techniques, monitors when you take items off shelves. When you decide to leave, you walk out, and you get charged for your purchases and given a digital receipt through Amazon’s app.
If you are a retailer and you are looking at changing your business processes for the better, book a demo with one of our product specialists today. Our development solutions are used by a growing list of the world’s biggest organisations including household names across the retail vertical. KnowledgeKube makes it easy to fully enable and integrate digital solutions, empowering retailers to sell more, retain customers and offer better shopping experiences.
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