Retailers Need AI to Address Shifting Consumer Behaviors
Consumer behaviors are not only in constant flux, they’re in contradiction. On one hand, retail shoppers are seeking out affordable alternatives to typical big-name brands; on the other, they’re splurging more than ever on particular goods they deem worthy. This conflicting behavior is also evident in customers’ reactions to branded communications. They want more information to help them purchase wisely, yet they don’t want multiple messages that overwhelm their inboxes.
In the midst of these patterns, two factors remain consistent. The first is clear to every retailer: customers love a deal, with two-thirds of US consumers seeking promotions and offers whenever they shop. Though the second factor has yet to prove the same longevity, it’s already clear that it’s critical to business success: retail marketers need AI to meet consumers' varying and changing needs, instead of a sole reliance on traditional discount tactics that cut deeper into their profit margins.
Discover how you can use AI strategically at every point in the campaign process, including workflow improvements and finessing every type of marketing communication.
Key AI Enhancements for the Marketing Workflow
The buzz around AI seems to be never ending, but retail marketers can quickly find specific, tactical use cases for the tools that will improve every phase of their workflow, from strategizing to campaign creation and analysis.
Streamlined Tasks
It’s no secret that AI leads to outstanding improvements in efficiency. Whether it’s automating repetitive tasks or optimizing budget spend, marketers are able to focus far more on key strategic goals—such as building customer relationships—when they use AI to give them a leg up on their workflows.
Quicker Pace
In the same vein as automation, AI can also be used to manage creative libraries and relieve some of the pressure marketers face in their day-to-day tasks. Fast turnarounds are made possible with AI automation, making stress-inducing tasks such as last-minute creative changes or product swaps a breeze.
Deeper Insights
While AI’s efficiency gains are critical, its data insights are truly invaluable. AI can be used to analyze the performance of creative assets, offering deeper insights than the typical campaign-level breakdown, illuminating to marketers what content is resonating with their customers. The AI will also help marketers react accordingly, using the solution’s automated data insights to send a perfectly personalized message at the most convenient moment for each customer.
Boosted Revenue
According to McKinsey research, the improvements in efficiency and analytics will undoubtedly lead to improved revenue. Through generative AI alone, McKinsey predicts more than $4 trillion in “annual global productivity,” with retail and CPG reaping half a trillion. When marketers delve deeper into AI by leveraging multiple models simultaneously, the results will likely be even more impactful.