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AI is helping retailers customize their offerings, create personalized experiences, and make shopping more convenient.
Customer centricity - putting your customer at the center of your strategy-has long been considered the holy grail of retail marketing.
In the digital age, customer-centricity revolves around data and smart technologies like artificial intelligence (AI). With the help of AI, companies collect as much data as they can about their customers' wants, needs, and preferences, and then apply it to customize their offerings, create personalized shopping experiences, and make the purchase process simpler and more convenient. An example of new tools available for understanding customer habits is the Personality Insights service made possible by IBM's AI platform, Watson.
As we continue to see AI moving from the hype stage to actual implementation within organizations, retailers and marketers have new opportunities for gaining a competitive edge when it comes to customer centricity. Here are three applications of how retailers are using AI to transform their marketing strategies:
AI allows retailers to identify which customers to cultivate. A company's marketing efforts are always at risk of being ignored. There's a reason that John Wanamaker, the 19thcentury marketing pioneer, once quipped: "Half the money I spend on advertising is wasted; the trouble is, I don't know which half."
But AI helps companies know which customers are...