Companies are confident that consumers are willing to engage with AI technologies
Survey question to retailers: Thinking about in-store and online customer service; I feel that consumers would accept being served by AI-related technology (e.g. touch screen assistants, AI natural language use, chatbots).
Source: Retail Economics/CMS, 2019
AI customer personalisation and retention
From a retailer perspective, customer retention and loyalty is the Holy Grail. Securing retention and building loyalty often stems from using data to understand the consumer, and thanks to AI-driven advancements, data mining techniques and processes, this is helping to leverage previously inaccessible insights which will lead to a new generation of customer service.
For instance, next best action marketing and post-sales data analysis will be influenced by new technology. Various next best actions that retailers could consider might include individualised offers via social media, advice on how to use a recently purchased product, texting or sending a catalogue in an attempt to sell products to an already loyal customer, or even delivering samples to a customer.
More than 85% of retailers think that AI powered data analytics will enable more sophisticated and personalised targeting of customers which will improve loyalty and lifetime value.
However, many of the technologies rely on vast amounts of personal data, and with that, comes trust. Only 17% of consumers trust retailers and consumer companies to handle sensitive data properly.
“Only 17% of consumers trust retailers and consumer companies to handle sensitive data properly”
Retailers and consumer companies are trusted only slightly more than social networks
Survey question to consumers: Who do you trust the most to handle your personal data?
Source: Retail Economics/CMS, 2019
Only time will truly tell how consumers and retailers will interact with AI-integrated technology, but the research certainly indicates growing interests, albeit tempered with issues around trust and ethical use.
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This insight article forms part of a thought leadership report entitled “Disruption 2.0 – Here we go again: AI in Consumer and Retail”. It was produced by Retail Economics in partnership with CMS and looks at consumers across all age groups in the UK and explores their attitudes regarding AI technologies they currently interact with, and the cutting-edge applications emerging. To contrast this, the research also includes a business survey of senior leaders from Consumer and Retail organisations, FMCG manufacturers and fashion and luxury brands, to gauge their sentiments towards disruptive technologies and the opportunities and challenges they currently face.
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