Generative AI is one of the most promising technologies for businesses to increase operational efficiency, automate analysis practices, and improve customer experience. A McKinsey report shows that 33% of businesses are implementing GenAI and using this technology regularly in at least one business function.
GenAI is projected to see significant growth in the coming years, with a forecasted compound annual growth rate (CAGR) of over 24% from 2023 to 2030, resulting in a market volume of US $207 billion by 2030.
Retail is one of the most complex and competitive industries, requiring its players to act proactively to ensure customer satisfaction and create seamless experiences in digital and physical stores.
Some retail brands are already using GenAI practices to create personalised recommendations or generate product descriptions. Beyond these practices, GenAI offers many opportunities for retailers to achieve operational excellence and transform their CX approach.
In this blog post, we’ll explore these possibilities and learn how the Artiwise VoC platform can help retailers and CPG brands unlock the ultimate shopping experience effectively.
Understanding the Current Landscape in Retail
The past two years have been anything but ordinary for retailers. The retail and CPG industry experienced rapid changes in inflationary pressures, technological advancements, and changing consumer behaviours.
Adapting to these ever-changing forces is necessary for brands and merchants to survive in the industry. They need to find an efficient way to improve process efficiencies and reduce costs while keeping up with current trends.
We’ll explain how technologies like Artificial Intelligence and GenAI can help these organisations to achieve their goals but before that let’s take a look at the emerging trends shaping the retail landscape in 2024.
Technology-Driven Transformation
As we stated before, the exponential growth of technology is reshaping how retailers operate. Moreover, retailers are cautiously optimistic as the global economy shows signs of recovery. Consumer sentiment is improving, inflation concerns are easing, and spending intentions are rising.
Organisations should utilise innovative strategies to enhance customer experience in the retail and CPG industry to unlock the potential of these positive signs and technology.
By analysing vast amounts of data with GenAI and AI-powered VoC solutions, retailers can tailor their offerings to individual shoppers, leading to higher conversion rates and improved customer experience.
The integration of Artificial Intelligence into every aspect of retail operations—from inventory management to customer service—has become essential for staying competitive.
Market Adaptation and Consumer Diversity
The European retail landscape is incredibly diverse, with varying consumer behaviours across countries and regions.
Retailers must adopt localised strategies to cater to these nuances. Prime locations in major cities remain crucial, but retailers are also exploring opportunities in suburban areas and tourist hubs.
Hyper-personalisation is the name of the game. By leveraging data analytics, retailers can understand local preferences, cultural nuances, and buying patterns. Whether it’s adjusting product assortments or tailoring marketing messages, retailers who embrace consumer diversity will thrive.
The retail landscape in the UK and Europe is a dynamic blend of technological innovation, consumer diversity, and strategic adaptation. Retailers who embrace these trends and remain agile will not only survive but thrive in this ever-evolving industry.
Common Challenges in the Retail and CPG Industry
According to the McKinsey report, companies can generate as much as 40% more revenue from personalisation. Additionally, a Deloitte study shows that 43% of executives list personalisation as a top reason for investing in hybrid experiences.
These two pieces of data give insight into the significance of creating a seamless omnichannel customer experience for today’s customers.
However, most retail and CPG brands encounter some common challenges that slow them down in improving customer experience and evaluating customer interactions effectively.
Here are all the common challenges to be overcome to create engaging retail and CPG shopping experiences.
Fragmented Customer Data
One of the primary hurdles faced by retailers is fragmented customer data. In an era where data reigns supreme, the inability to consolidate and analyze customer information from disparate sources poses a significant obstacle.
Fragmented data makes it challenging for retailers to gain a holistic view of their customers’ preferences, behaviours, and purchase histories. As a result, retailers may struggle to deliver personalized experiences that resonate with individual customers and utilise the full potential of customer experience analytics.
Personalisation Challenges
Personalization has become a cornerstone of successful retail strategies, yet many retailers still grapple with personalization challenges. From understanding customer preferences to delivering tailored recommendations, achieving true personalization requires a sophisticated Voice of Customer analysis.
However, without access to accurate and unified customer data, retailers may fall short in their personalization efforts, leading to missed opportunities to connect with customers on a deeper level.
Keeping up with Customer Expectations
In today’s hyperconnected world, customer expectations are constantly evolving. Customers expect seamless, convenient, and personalized experiences across all touchpoints, whether online or in-store.
Meeting these heightened expectations requires retailers to stay ahead of the curve and adapt quickly to changing consumer trends. However, keeping up with rapidly evolving customer expectations poses a formidable challenge for retailers, especially those operating in highly competitive markets.
Creating Seamless Retail and CPG Shopping Experiences with Generative AI
Addressing the common challenges in delivering the ultimate experience in the retail and CPG industry requires innovative solutions that empower brands to harness the full potential of their data and technology.
This is where generative AI comes into play, offering retailers a powerful tool to overcome obstacles and elevate the customer experience to new heights.
Here is how Gen AI can address the common challenges faced by retailers in the areas of fragmented customer data, personalisation, and meeting customer expectations:
Fragmented Customer Data:
- GenAI can streamline the process of consolidating and analysing data from disparate sources. By employing advanced algorithms, GenAI can integrate data from various systems and platforms, creating a unified view of customer information.
- Through data cleansing and enrichment techniques, GenAI can help retailers identify and resolve inconsistencies or errors in their data, ensuring its accuracy and reliability.
- By generating insights from vast datasets, GenAI enables retailers to gain a comprehensive understanding of customer preferences, behaviours, and purchase histories, empowering them to make data-driven decisions.
Personalisation Challenges:
- GenAI excels at generating dynamic content and recommendations tailored to individual customer preferences and behaviour. By analysing historical data and user interactions, AI can anticipate customer needs and deliver personalised experiences across various touchpoints.
- Through iterative learning and refinement, AI continuously improves its recommendations, ensuring relevance and effectiveness over time. This iterative approach enables retailers to adapt to changing customer preferences and market dynamics dynamically.
- Meeting Customer Expectations:
- GenAI enables retailers to create seamless and immersive retail and CPG shopping experiences that align with customer expectations. By generating personalised product recommendations, content, and promotions, Generative AI enhances engagement and satisfaction throughout the customer journey.
- Through real-time analysis of customer interactions and feedback, GenAI helps retailers identify emerging trends and opportunities to enhance the customer experience proactively.
- By staying attuned to customer sentiment and preferences, retailers can iterate and innovate their offerings to meet evolving expectations effectively.
Artiwise VoC: Ultimate Voice of Customer Platform with Generative AI Capabilities
Artiwise VoC platform, armed with its cutting-edge VoC (Voice of Customer) tool equipped with Generative AI capabilities, emerges as a transformative solution for retail and CPG brands seeking to navigate common industry challenges and elevate customer satisfaction to new heights.
- Real-Time Voice of Customer Tracking:
Artiwise VoC platform captures a diverse array of customer interactions, including inbound and outbound call centre dialogues, customer support tickets, NPS & CSAT surveys, online reviews, social media feedback, and chatbot & webchat dialogues.
This comprehensive tracking allows retail and CPG brands to gain a holistic view of customer sentiments and preferences across various touchpoints.
- End-to-End Customer Journey Mapping Analysis:
By tracking customer journeys from start to finish, Artiwise’s AI-powered VoC analysis feature enables brands to identify critical touchpoints and moments of truth that shape the overall customer experience. Through in-depth analysis, Artiwise highlights strengths and weaknesses related to stores, products, and experiences, empowering brands to make informed strategic decisions to enhance customer satisfaction.
- Root-Cause and Sentiment Analysis:
Leveraging advanced AI algorithms and customer feedback analysis capabilities, Artiwise conducts root-cause and sentiment analysis of customer interactions.
By delving deep into the underlying factors driving customer sentiments, Artiwise uncovers actionable insights that enable brands to address issues at their core and deliver meaningful improvements to the shopping experience.
- AI-Generated Recommendations:
Artiwise generates tailored recommendations based on its analysis of customer interactions. These recommendations span both physical and online touchpoints, encompassing suggestions for product offerings, store layouts, customer service protocols, and more.
By implementing these AI-generated recommendations, brands can enhance the overall shopping experience and drive sustainable customer satisfaction.
- NPS Impact Analysis:
Artiwise’s NPS impact analysis feature evaluates the current NPS (Net Promoter Score) and CSAT (Customer Satisfaction) scores of brands, allowing them to prioritise improvements based on their importance.
Moreover, Artiwise showcases the potential outcomes of AI-generated CX actions, providing brands with valuable insights into the anticipated impact of their initiatives on customer satisfaction metrics.
Let’s Explore the Future of Customer Experience in Retail Together
Artiwise is a holistic VoC platform, serving as a strategic ally for retail and CPG brands in their quest to overcome common challenges and achieve sustainable customer satisfaction.
By harnessing the power of generative AI and comprehensive VoC capabilities, Artiwise empowers brands to unlock actionable customer insights, drive meaningful improvements, and deliver exceptional experiences that resonate with customers at every touchpoint.
Let’s meet for a free Proof of Concept (POC) to showcase how Artiwise’s VoC platform can help you drive customer loyalty, revenue, brand recognition, and engagement!
