How Can Smaller Retailers Fight Amazon's Growth? The Answer Is AI And Personalization

While retail giants have seemingly unlimited resources and scale — and they certainly matter — their smaller competitors can tap into one of these giants’ key performance drivers — personalized and emotional experiences with their customer base.

In an era where choice is unlimited, and price or location no longer create a competitive edge, authentic customer experiences and community have become a huge differentiator. People increasingly expect brands to interact with them in a personalized, emotionally intelligent fashion, with communications and offers that are timely and relevant. Retailers are using a scientific approach to deliver the experiences that resonate with specific customers and keep them loyal. This loyalty is translated into an increase in all customer KPIs, including conversions, LTV and churn reduction. While this personal approach is one of the strong suits of e-commerce behemoths with Amazon at the head, smaller digital-first brands are adopting it in droves, and it is already widely trickling into the wider realm of e-commerce.

How Amazon Will Use Analytics To Shake Up The Supermarket Industry

Legacy supermarkets, such as Kroger and Safeway, have ingrained practices that often have existed for decades. They range from how they set prices to how they pick what to offer, how they organize their stores, and how they evaluate success and failure. With the Whole Foods acquisition, many of these industry practices will be challenged.

Amazon manages its online retail site in a way fundamentally different from how most retail supermarkets operate. For example, at Amazon the customer is a central unit of analysis, but in many supermarkets the products are the focus. Many retailers employ sophisticated category management practices, but they are far less involved with sophisticated customer management programs.

New JDA Survey Finds Understanding Consumer Behavior Is the Missing Link in Manufacturers’ and Retailers’ Path to Omni-channel Success

In today’s highly competitive, omni-channel market, companies are realizing the path to success hinges on their ability to understand consumer behavior. Retailers and manufacturers can unlock significant competitive advantage by leveraging consumer insights to make category decisions and create localized merchandising assortments. The JDA Voice of the Category Manager survey, conducted by JDA Software Group, Inc., reveals findings from nearly 100 professionals responsible for category management and merchandising activity in North America. The report revealed that most companies lack the ability to mine and leverage important customer data, and are therefore failing to meet evolving shopping demands. As such, respondents indicated that their number one investment priority in the next five years is big data and predictive analytics (41 percent), followed by investment in customer-driven data science (37 percent)

How the auto industry is about to get personal

As technological advancements have revolutionized the driving experience, carinteriors have become seamlessly integrated with the outside world.

Sensors and software make it possible for vehicles to interact with your home or office, allowing you to stay connected while on the move. While autonomous vehicles are likely years away from becoming mainstream, connected cars are here and now. Those working in the automotive industry realize that as artificial intelligence solutions continue to advance the level of connectivity between the outside world and the inside of a vehicle, personalization is becoming one of the key elements of connected vehicles.

Recommended Just For You: The Power Of Personalization

Personalization is a popular trend that enhances the customer experience. It starts with knowing the customer – or maybe a better way to say it is remembering the customer. I stayed at a hotel last year, and when I was checking out I mentioned how nice the room was. When I came back, nearly a year later, the front desk clerk welcomed me back and mentioned that they had given me the same room that I stayed in before. I was impressed, and after my stay, I looked forward to returning again. After all, this is the hotel that “knew me.”

The Homepage is Dead: A Story of Website Personalization

In 1998, Jeff Bezos had a vision for the Internet. At that time he was four years into building Amazon. It was taking off as a humongous online emporium of books and music. In an interview with the Washington Post that year, Bezos made a visionary statement about the web. “If we have 4.5 million customers, we shouldn’t have one store. We should have 4.5 million stores,” he said.

Fast-forward 19 years and here we are in 2017. My Amazon homepage is extremely personalized to me. (In August it was showing me glow sticks and solar-powered lamps. It clearly knew I was going to Burning Man.)

How Digital Personalization Boosts Conversion of Brick and Mortar Stores

These days, everyone seems to have a need to get personal. In the retail industry, specifically, more than half of the consumers surveyed (59%) says that personalization influences their purchasing decisions.

This is an indication that businesses should leverage on online personalization to fuel higher conversion rate. Specifically, business needs to get into online personalization to bring life to business in a post brick and mortar era. 

Rather than repelling from the digital approach, retail marketers should embrace online personalization to drive conversion towards their brick and mortar stores.

Philips leaves personalization out of latest indoor positioning job

When the sprawling, four-story Media Markt computer and electronics store re-opens in Eindhoven, the Netherlands this week, its refurbishment will include LED ceiling lights that transmit information to help smartphone-equipped shoppers find their way to different goods, using visible light communication (VLC) from Philips Lighting.

New Evergage Study Shows Compelling Personalization Benefits - But There's Still Room for Improvement in Executing Campaigns

With personalization becoming a more widely adopted marketing strategy, organizations are realizing a range of benefits – from deeper customer relationships to improved conversion rates. What's more, 9 out of 10 marketers (88%) say their customers expect an experience, across digital properties, that's personalized to them. Despite all this, according to a newly released, annual studyfrom Evergage and Researchscape International, many marketers still have work to do to realize the full potential of their campaigns.

Retail Technology And Catalysts of Change In An Age of Disruption

 

Disruptive technologies, such as artificial intelligence, the Internet of Things, big data and robotics will create huge future opportunities for retailers and brands. But this future is not as far away as we think. New business models are already disintermediating traditional retailers, particularly when it comes to owning the relationship with the customer.

3 Ways to Give Your Customers the Personalized Experience They Expect

Trying to get inside the mind of a customer is a complicated thing. It requires that you really dig in and look beyond the surface level details for meaningful takeaways. While you’ll probably discover a lot, there’s one truth you’ll definitely uncover: customers crave personalization.

Which Big-Box Retailers Lead and Lag With Personalization?

ICLP, global loyalty marketing agency and part of the Collinson Group, surveyed 1,000+ U.S. consumers to learn their top-six preferred big-box retailers – Amazon, Walmart, Target, Nike, Macy's and Kohl's – and then analyzed how each is performing when it comes to personalizing the customer experience. Personalization, the act of tailoring the shopping journey through three key facets – proper communications, understanding of preferences, and relevant rewards – is paramount for attaining and maintaining customer loyalty.

Data Analytics: The Key To Unlocking The Retail Advantage

Today’s retailers have so much to know about customers — who they are, what they buy, when they buy, how they like to pay, and how they feel about the interaction, product and brand. The good news is there’s plenty of data to fill in the gaps. Every customer visit and interaction, be it in-store, online or on a mobile app, yields a trail of data for the retailer to explore.

Lagging In-Store Personalization Cost Retailers $150 Billion In 2016

The lack of in-store personalization remains a major pain point for retailers: 49% of U.S. consumers still say they “never” or only “sometimes” receive personalized service while they’re in a store, according to a survey from TimeTrade.

The report, titled: TimeTrade State of Retail 2017, suggested that by failing to offer shoppers the personalized shopping experiences they want, U.S. retail stores left approximately $150 billion in potential revenue on the table in 2016. Consumer respondents said they would increase their in-store spending by 4.7% on average if they received better, more personalized service from retailers

The Entertainer Triples Email Revenue Through Real-Time Personalization

Email is still a critical component for marketing organizations, even though most consumers' inboxes are filled to overflowing. UK-based toy retailer The Entertainer has been able to stand out with real-time personalization, allowing the company to send smarter emails and communicate with customers in a timely and relevant manner.

Consumers Want More Retail Apps to Incorporate AI and AR

Retailers need to embrace next generation technology such as artificial intelligence (AI) and augmented reality (AR) if they want shoppers to continue using their apps, new research has found.

The study found that nearly 30% of consumers would like to see more innovation in mobile apps, so that they provide a better, more personalised shopping experience. Shoppers surveyed said they would be more likely to download a retail app if it featured technology that helped them to make a buying decision, or let them preview products before purchasing them.

Personalization, Diverse Merchandising Drive Vipshop’s Growth in 2016

China’s online discount retailer for brands Vipshop Holdings Limited reported a 40.8 percent increase in total net revenue for the full year of 2016 over the prior year. The number of active customers also increased 42 percent to 52.1 million compared to the previous year.

A Machine Learning Landscape: Where AMD, Intel, NVIDIA, Qualcomm And Xilinx AI Engines Live

Without a doubt, 2016 was an amazing year for Machine Learning (ML) and Artificial Intelligence (AI) awareness in the press. But most people probably can’t name 3 applications for machine learning, other than self-driving cars and perhaps their voice activated assistant hiding in their phone. There’s also a lot of confusion about where the Artificial Intelligence program actually exists.

 

4 Types of Content Personalization and What They Mean

These days, consumers are hungrier than ever for brands to cut through the clutter and provide exceptional experiences—and content’s role in brand’s delivering on that experience is growing in importance. Increasingly, consumers will only spend time with the content that earns their attention and is personally relevant to them.