{"id":547,"date":"2018-06-13T13:42:31","date_gmt":"2018-06-13T12:42:31","guid":{"rendered":"https:\/\/www.microsoft.com\/en-gb\/industry\/blog\/industry\/2018\/06\/13\/retail-is-bouncing-back-with-artificial-intelligence\/"},"modified":"2018-11-14T15:28:09","modified_gmt":"2018-11-14T15:28:09","slug":"retail-is-bouncing-back-with-artificial-intelligence","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-gb\/industry\/blog\/retail\/2018\/06\/13\/retail-is-bouncing-back-with-artificial-intelligence\/","title":{"rendered":"Retail is bouncing back with Artificial Intelligence"},"content":{"rendered":"

If you were present at the recent World Retail Congress \u2013 or even if you weren\u2019t able to make it \u2013\u00a0 there was one message well worth hearing. Retailing today may be tricky, but it also features huge opportunities to create new revenue streams worth billions of dollars.[1]<\/a><\/p>\n

That\u2019s great news, especially in light of what\u2019s recently happened to household names such as Toys\u2019R\u2019Us, Maplin[2]<\/a>, Joe Bloggs, and East[3]<\/a>. The only question\u00a0 is \u2013 how can UK retail seize all this opportunity? One way is AI or, as many call it, intelligent technology.<\/p>\n

The stakes have got higher<\/strong><\/h2>\n

For many years, retail has relied on data management and database analysis to see exactly what\u2019s happened, and what\u2019s going on in the big wide world.<\/p>\n

Intelligent technology, on the other hand, ups the ante. It tells you what happened. But it does a whole lot more. It strengthens your ability to work out what\u2019s going<\/em> to happen, and why, by using parts of apparently unrelated data. Everyone knows, for example, that ice cream sales increase as it gets hotter. But did you know, for example, that they peak at 25\u00b0C? \u2013 or that fizzy drinks sell more during rainy and snowy winters?[4]<\/a><\/p>\n

If intelligent tech isn\u2019t just blue-sky thinking and is actually possible, it could prove to be a god-send for retail. For example, Next places much of the blame for its slump in profits on \u201cself-inflicted product ranging errors and omissions\u201d.[5]<\/a> Researchers at the University of California[6]<\/a> have come up with some predictive fashion algorithms \u2013 so could these help iron out Next\u2019s problems?<\/p>\n

It\u2019s amazing what human ingenuity can do with the right tools. Here are a few other ideas for you:<\/p>\n

Dynamic pricing<\/strong> \u2013 Give customers the best prices, affordable rates and occasional special offers for a range of producrs and services – not just for a few items such as airline fares and hotels. It\u2019s a great way to create loyalty.<\/p>\n

Personalisation <\/strong>\u2013 Benefit the brand and the customer by offering an experience that is right, timely and tailored to the individual.<\/p>\n

Advanced retail planning<\/strong> (ARP)<\/strong> \u2013 ARP isn\u2019t just about being smarter with planograms. It also includes making sure you\u2019re not faced with massive physical and financial stock overheads. And it helps keep the competition at bay. It uses analytics to understand what customers want, when they want it, and how much they want to pay.<\/p>\n

What\u2019s possible could kickstart the incredible<\/strong><\/h2>\n

Wondering how companies are using AI? Here are a few examples.<\/p>\n

Fashion
\n<\/strong>With 32 quarters in a row of double-digit online growth behind it, one international fashion brand used Microsoft Dynamics 365 AI solution for customer service to add a virtual agent to its website. Within a month, the virtual agent was already providing improved customer experiences. Answering more than one quarter of customer queries. Giving the right offer discounts. Suggesting products. Checking local stock. And passing calls over to live agents if necessary. Unsurprisingly, the brand now plans to expand it to additional shopping channels.<\/p>\n

Electricals
\n<\/strong>Cami\u2019s the latest recruit at a popular electricals company. She\u2019s a bot based on the Microsoft Bot Framework and Microsoft Cognitive Services, and she answers questions through the brand\u2019s website and Facebook Messenger. Customers and store colleagues can find products, check stock, and discover important information to make every experience a better one.<\/p>\n

Furniture
\n<\/strong>This online furniture retailer has around 10,000 products on its site. And each has a host of options that allow shoppers to customise their purchases. That\u2019s a lot of choices. So, to stop customers from being scared away, the company looked at Microsoft AI solutions. The website now makes customisation recommendations attached to each product, as well as ones based on a visitor\u2019s browsing history. Conversions have trebled as a result.<\/p>\n

Want some more inspiration?<\/strong><\/h2>\n

You can find a lot more information about intelligent technology here:<\/p>\n

 <\/p>\n

 <\/p>\n

The Future is Cognitive: Using AI in retail to meet new hurdles<\/a><\/p>\n

How retailers can improve the customer experience with AI<\/a><\/p>\n

 <\/p>\n

[1] https:\/\/www.worldretailcongress.com\/session\/fireside-chat-survival-guide-new-retail-world?search_id=103656<\/a><\/p>\n

[2] https:\/\/www.independent.co.uk\/news\/business\/analysis-and-features\/uk-high-street-store-closures-retail-job-losses-2018-next-toys-r-us-new-look-maplin-a8270506.html<\/a><\/p>\n

[3] http:\/\/www.retailresearch.org\/whosegonebust.php<\/a><\/p>\n

[4] https:\/\/www.inma.org\/blogs\/conference\/post.cfm\/how-weather-company-uses-consumer-behaviour-data-for-targeted-advertising<\/a><\/p>\n

[5] https:\/\/www.independent.co.uk\/news\/business\/analysis-and-features\/uk-high-street-store-closures-retail-job-losses-2018-next-toys-r-us-new-look-maplin-a8270506.html<\/a><\/p>\n

[6] https:\/\/www.technologyreview.com\/s\/609469\/this-ai-learns-your-fashion-sense-and-invents-your-next-outfit\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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