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How Will 2023 Influence This Year's Retail Development?

Mar 15, 2024 - forbes.com
The article discusses the challenges faced by the retail industry in 2024, including the issue of 'shrink', the limitations of AI, and the shift towards hybrid customer experiences. Shrink, a decrease in retailer inventory for reasons other than sales, is a major concern, with technology such as RFID product tagging offering a potential solution. AI, while beneficial for handling repetitive tasks, lacks the critical thinking and empathy of human customer service representatives, and can cause problems if the data it uses is incorrect or incomplete.

The article also highlights the trend towards hybrid customer experiences, where customers combine online shopping with in-store pick up or returns, creating a 'clicks-to-bricks' shopping culture. While this can be more profitable for retailers, it needs to be a seamless experience to work for consumers. The article concludes by noting that while the cost of implementing new technologies can be a barrier, a customer-first approach to the retail experience can pay dividends.

Key takeaways:

  • One of the major issues for retailers in 2023 was 'shrink', a decrease in retailer inventory for reasons other than sales. Retailers are expected to take preventative measures to counter shrink in 2024, with technology like RFID product tagging playing a significant role.
  • While AI has been touted as a solution for many retail problems, it currently lacks the critical thinking and empathy of a human customer service representative. However, AI chatbots and voice bots can be used for repetitive tasks, freeing up human customer service teams for more complex issues.
  • Online shopping has not replaced in-store shopping as once predicted, but rather has made brick-and-mortar stores a central piece in the omnichannel shopping puzzle. Many customers prefer a hybrid shopping experience, such as buying online and picking up or returning in store.
  • While the cost of implementing new technologies like RFID and AI can be a barrier, a customer-first approach to the retail experience can pay dividends in the long run.
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