This article was based on the interview with Joe Shasteen from RetailNext by Greg Kihlström, MarTech keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
One area where artificial intelligence (AI) is revolutionizing physical retail is through the use of camera technology. Companies are using AI and machine learning algorithms to analyze customer behavior and provide valuable data to retailers.
By tracking customers as they enter retail locations, AI can accurately measure traffic and conversion rates, providing insights into the overall opportunity of a physical store. This information allows retailers to effectively understand their stores, identify additional opportunities, and maximize their sales potential.
AI is also being used to identify staff members based on the unique color of their uniforms. By using machine learning algorithms, AI can differentiate between customer behavior and staff behavior, providing valuable insights into staff performance and customer interactions. This allows retailers to improve their customer service and ensure that staff members are well-trained and knowledgeable about the products they sell.
The future of physical retail is not bleak, despite the headlines of retail and mall spaces closing their doors. While there may be some consolidation in lower-rated malls, A and B malls will remain important for driving traffic to retailers and providing a new customer base. These malls will need to adapt to changing customer demands and provide a hub-like experience. This includes ensuring that associates are well-trained and knowledgeable, and that the spaces are easy to shop and clear for customers to find what they’re looking for.
AI is revolutionizing physical retail by providing valuable insights into customer behavior, optimizing operations, and creating personalized experiences. By leveraging advanced analytics and technology, retailers can thrive in the digital age and compete with online retailers. However, it is important for retailers to prioritize data privacy and compliance to build trust with customers and ensure the ethical use of data. With the right implementation of AI, physical retail can continue to evolve and provide unique and engaging experiences for customers.