Streamline Operations and Boost Customer Satisfaction With Generative AI5 min read
A SoftServe/Wakefield Research survey shows nearly half of enterprise retailers are prioritizing Gen AI over the next year
Only 25% of retailers have implemented Generative AI, according to a November 2023 survey of 100 retail executives at companies with a minimum of $1 billion in revenue conducted by SoftServe and Wakefield Research. However, 47% see Gen AI as a priority to invest in and 36% have already put non-generative AI or machine learning in place.
As consumer behaviors shift due to technological developments, businesses must adapt and integrate technological innovations such as Gen AI into their business practices to stay ahead of competitors and thrive in a highly digital and tech-driven economy. This is particularly true for retail enterprises that aim to improve customer experience, streamline operations, and remain competitive in an evolving market.
Improve customer experience
Improving customer experience is a top priority for retail executives. According to the SoftServe Wakefield Research, 44% of retail executives have put it at the top of their goals for their 2024 technology strategy. AI-powered chatbots and virtual assistants provide immediate responses to customer inquiries and provide personalized feedback based on specific customer interactions.
With AI, enterprises can also respond efficiently and personalize customer engagement to enhance customer satisfaction and increase loyalty. This explains why 50% of retail executives plan to invest in AI-powered customer recommendations in 2024. AI can analyze the vast amount of data collected by retailers to create more personalized product recommendations for each consumer. Additionally, AI analyzes customer data to provide insights on how to improve products or services based on customer preferences and behaviors. This allows retailers to tailor their offerings to meet the needs and preferences of their customers, resulting in increased customer satisfaction and retention.
Gen AI can also streamline retail operations, saving time and reducing costs by automating routine tasks such as inventory and supply chain management. In doing so, retailers reduce human error and free up time for employees to focus on tasks that require more creativity and intuition. With 32% of retailers concerned about workforce shortages and 29% troubled by rising labor costs, these benefits are significant.
By adopting Gen AI, retailers improve productivity, leading to increased profits. Additionally, AI-powered systems can predict demand for products, allowing retailers to optimize their inventory levels and minimize waste. This can result in significant cost savings for the company.
Enhance product development
Gen AI can aid in product development by generating new and innovative designs based on consumer preferences and trends. Retailers can use this technology to create unique products that stand out in the market and cater to specific customer needs.
AI can analyze thousands of images and customer feedback to identify trends and preferences, leading to better product designs and more creative ideas. By incorporating Gen AI into their product design process, retailers can stay competitive and remain on the cutting edge of their industry. With sales and marketing as a top-three driver for technology investments according to the SoftServe/Wakefield Research survey, Gen AI’s ability to impact product development and design is significant.
Optimize customer service
Gen AI is also helpful in providing customer service. According to the SoftServe/Wakefield Research results, 46% of retail executives plan to invest in online chatbots in 2024. Chatbots can help retailers provide quick and efficient customer service, saving both time and money. By automating customer service, retailers reduce the burden on customer service employees and provide 24/7 support to customers. This can lead to increased customer satisfaction and loyalty.
Gen AI takes chatbots a step further, offering an interactive digital assistant that engages in real-time conversation, gets to know a customer’s individual preferences, and provides a unique, tailored shopping experience.
Gain a competitive advantage
Research reveals that 47% of retail executives plan to invest in Gen AI-powered solutions in 2024, while 46% will invest in in-store analytics, and 50% plan to invest in AI-powered customer recommendations. The adoption of AI by retailers is increasing, providing a significant competitive edge. Retailers using Gen AI are already reaping the benefits of reduced costs, enhanced customer experience, increasingly streamlined processes, and a significant competitive advantage in a highly competitive industry.
SoftServe recognizes the significant impact Gen AI has on reshaping the retail and innovation landscape. That's why we've proactively initiated steps to drive progress by establishing strategic alliances with key players in the field, such as NVIDIA.
We specialize in guiding businesses through the intricacies of Gen AI, ensuring that the experience is not only revolutionary but also aligns seamlessly with your retail objectives.
Let's talk about how SoftServe offers comprehensive guidance and assistance in implementing solutions that position your retail business as a leader in the industry.