Harnessing the power of data and AI in retail
AI-powered solutions are helping retailers worldwide transform the shopping experience for customers and frontline workers alike. Embracing a unified, secure digital architecture can uncover new, valuable customer information and drive personalization for a unique customer experience.
The Retail Cloud Alliance (RCA) offers resources to navigate today’s evolving retail environment. Created by Microsoft and industry media partner RETHINK Retail in collaboration with Microsoft Cloud AI Partners, RCA supports retailers in seamlessly adopting cloud technology and maximizing its capabilities across business operations. RCA provides educational content, resources, engaging discussions, and consultations to guide retailers on using new technology.
To dig deeper into this retail transformation, RETHINK Retail recently held in-depth discussions with its Top Retail Experts Community and Microsoft subject matter experts for a podcast series, which explores the four pillars of successful retail in the era of AI: unlocking data value, unifying personalization, connecting supply chains, and empowering store associates.
Moving beyond data to actionable insights
Data has long been a driver in retail decision-making, but the synergy between AI and a solid data foundation can uncover new insights about customers. Transitioning from storing data in disparate locations to a unified, cloud-based architecture helps organizations to fully harness the unique capabilities of AI. New, AI-powered analytics about shopping patterns, marketing messaging, or inventory status are changing how retailers relate to customers.
“With the launch of generative AI, a lot of retailers are learning things about their organizations they didn’t understand before,” says Shelley Bransten, Corporate Vice President, Global Industry Solutions, at Microsoft. “Once you start to open that up, you’re going to know more about what your customer is doing today and what recommendations you can offer to them in the future.”
Retailers that embrace a cloud-first approach to data collection and storage can also boost security and privacy within the Microsoft ecosystem. Embracing a powerful data solution like Microsoft Power BI helps retailers process and store reliable data that AI technologies can build on.
To understand how a secure data foundation is the beginning of any AI journey, check out this podcast. Furthermore, discover how RCA partner Icertis is helping retailers use the wide organizational footprint of AI across data sources to uncover new insights.
Thriving through personalized customer experiences
Building upon the insights provided by AI-powered tools in unified data sets is helping retailers thrive in an environment where personalization is not only desired but also anticipated. Bransten notes that over 70% of customers now expect a personalized shopping experience.
More customers now begin their shopping experiences online, and AI is helping retailers merge information on customers’ in-person and online shopping patterns. Whether in a physical store or in the digital realm, every touchpoint between retailer and customer should be a personalized experience that stands out in the customer’s mind.
“The next stage of retail development is about seamlessness across technology, and retailers need to invest in the right technology that will encourage a single source of truth for who your customer is,” says Liza Amlani, Principal and Founder of Retail Strategy Group.
Explore the world of unified personalization and how it’s providing retailers with a competitive advantage in this podcast, and discover how RCA partner Cognizant empowers the use of personalization through new technologies by helping customers organize their data. Learn more here.
Increasing supply chain agility with AI tools
Retailers have increasingly focused on the need for a nimble supply chain over the past four years. AI-powered tools and technology, such as radio-frequency identification tracking and Internet of Things, help retailers track inventory across sites in near real time. With this increased visibility into the flow of goods, retailers can also improve the accuracy of their forecasting for future needs, which impacts sales revenue.
“For every 1% accuracy that retailers can improve in their inventory, that shows itself 10 times as much in their bottom line,” says Ricardo Belmar, Director Partner Marketing Advisor for Retail and Consumer Packaged Goods at Microsoft. “Having that accurate inventory count has become absolutely critical to ensure customers get what they want, when they want it.”
Discover how advances in technology are giving retailers end-to-end transparency on their supply chains and inventory in this podcast. Supply chains and inventory technology are also frequent topics of RCA, where Microsoft partners such as Blue Yonder highlight how the cloud and AI come together to power modern retail supply chains.
Facilitating meaningful customer engagement
A sales associate equipped with AI-powered insights about products and consumers at their fingertips can make all the difference in closing a sale while building customer trust and loyalty. Frontline workers are not looking for just another tool but for a comprehensive system that supports how they work.
Offering frontline workers detailed, real-time data on products, customer shopping patterns, and inventory can boost employee satisfaction and productivity. Making such information quickly available, whether in a handheld device or on a screen, facilitates meaningful engagement between associates and customers.
“The right tools empower associates to ask the right questions while they’re selling and while they’re building a relationship with a customer,” says Amlani. “That’s key to increasing footfall and driving more loyalty.” Learn how retailers are empowering store associates in this podcast.
Embracing the future of retail
From inventory to supply chain to the frontline sales associate, retail is benefitting from the customer insights provided by a secure, unified data foundation. Harnessing AI-powered analytics offers retailers exciting opportunities to stand out among the crowd with personalized service, an agile supply chain, and empowered employees.
To learn more about how Microsoft is helping retailers embrace AI solutions, explore RETHINK Retail’s podcasts and the following resources:
