7 Ways Retailers Are Using Generative AI To Provide A Better Shopping Experience

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    Generative AI is a revolutionary tool that will impact nearly every industry. And retail is no exception. From smoothing online shopping to offering personalized products and everything in between, generative AI can help retailers delight their customers. This applies to shopping in physical stores as well as online stores.

    Here are seven generative AI use cases that every retailer should consider.

    1. AI shopping assistant allows purchasing via chat

    You've probably interacted with a customer service chatbot before. Well, thanks to generative AI, virtual shopping assistants (conversational AI tools that help customers find what they're looking for by simply typing or speaking what they want) are now on the rise. (In some cases, you can also share a photo to indicate the specific product you're looking for.) This makes navigation much easier, especially on large e-commerce sites. No more trying to figure out which category your desired product falls into or grappling with multiple search filters. Ask me what I want.

    eBay Shopbot features A great example of an AI personal shopping assistant. It's designed to help customers explore eBay's vast number of listings and find the right deal. It also works with text prompts, voice prompts, and even photos.

    Even complex purchases can be supported by AI shopping assistants. At Expedia, for example, customers can now freely “chat” in the app to plan their travel arrangements, from discussing accommodations to identifying the best attractions to see. This is as close to a classic travel agent experience as you can get in app form.

    2. More realistic virtual try-on function

    Until now, virtual try-on capabilities have been fairly rudimentary. For example, select from a small list of body types to see how a particular garment will look on your customer. However, generative AI brings a new level of realism to such capabilities. For example, Google introduced virtual try-on technology that uses generative AI to display clothes.Wide selection of real models” According to Google, this generative AI model simply takes a single photo of a garment and then shows how it sticks to a variety of real-life models representing different skin tones and ethnicities, from sizes XXS to 4XL. , and can show you exactly how to drape it. This feature is available for brands like Anthropologie and H&M.

    In the future, customers will be able to generate realistic avatars of themselves based on photos and exact measurements, and generate images of themselves wearing specific clothes (combining different items to create You can also check to see if they are compatible.) . Generative AI can also be used to generate images of customers wearing those items in different environments (such as the beach or a formal event), giving them complete insight into whether a product is right for them. Helps you visualize.

    3. Useful summary of customer reviews

    Imagine wanting to check out a simple product and finding hundreds of reviews offering numerous (and sometimes conflicting) opinions. That's the position customers are in every day. Now, thanks to generative AI's ability to understand and summarize long texts, this frustrating experience can become a thing of the past. Amazon is just one retailer that has begun experimenting with AI-generated review summaries. Amazon summarizes customer reviews as follows: One clear paragraph.

    4. Metaverse Store

    As augmented reality and virtual reality become mainstream, generative AI can help create immersive virtual shopping experiences. This ties in with the concept of the Metaverse, an immersive virtual world where you can shop, play games, work, and more. Forward-thinking retailers are already establishing a presence in the Metaverse, creating immersive, interactive, and personalized virtual stores. Nike is a true leader in the metaverse space with both games and showrooms nikeland on the Roblox Metaverse platform. Nikeland features buildings, arenas, games, and a virtual showroom with digital products.

    So where does generative AI fit into this? Technology can help make such virtual stores and experiences more responsive. For example, as a user navigates a virtual store, AI can generate personalized product placement and virtual sales assistants tailored to the user's shopping history and preferences.

    5. Personalized customer journey

    One of the most appealing benefits of generative AI is that it allows retailers to offer more personalized customer journeys. AI shopping assistants are one way to do that. But generative AI can do more than that. For example, this technology can be used to create custom promotions and offers tailored to each shopper by analyzing their individual buying habits and preferences. Suppose your customers frequently purchase sustainable products. The AI ​​could generate special discounts or bundle offers related to eco-friendly products on your next visit. This can be done automatically and at scale.

    Generative AI can also be used to develop highly personalized loyalty programs that evolve based on each member’s interactions with the brand. So instead of a generic points system, members could be offered personalized challenges, rewards tailored to their preferences, or unique experiences curated just for them.

    Crafts retailer Michaels Stores uses generative AI to better understand how different customer segments engage with different messages. So we went from personalizing his 20% of email campaigns to personalizing impressive email campaigns. 95% of email campaigns – This increased email click-through rates by 25 percent (41 percent for SMS campaigns).

    6. Personalized products

    Generative AI can not only suggest products that customers might be interested in, but also help customers design their own personalized products. Fashion technology specialist Space Runners has created a generative AI tool that allows people to: design their own unique clothes Just use a simple text prompt. An AI design tool called Ablo allows individuals to effectively become their own fashion brand. For brands, Ablo offers great co-creation opportunities with customers.

    7. How is the in-store experience?

    So far, we've focused on the online shopping experience. But in-store shopping could also be improved by generative AI. This technology allows you to create responsive store displays that change based on real-time data. For example, let's say you're moving into an area with a cold front. A clothing store's digital window display could be adapted to produce a live snowfall backdrop to display winter gear and attract people. Combining this with personalized customer data, in the future, store displays could adapt to each customer to show them products they might purchase. I'm interested in finding it in the store.

    Additionally, smart mirrors integrated with generative AI technology will be introduced to give customers an accurate representation of how they will look when wearing the product. This is similar to the virtual try-on features we're starting to see on websites and apps, as well as in brick-and-mortar stores. . But why would a customer want to try on clothes virtually when they go to a physical store? First, the store doesn't have all the styles, colors, and sizes available to try on.

    Coach is a handbag and accessories brand. We experimented with smart mirror technology. To celebrate the launch of the Tabby Bag campaign, the brand has installed smart mirrors in its SoHo store in New York. Customers using the mirror can see themselves wearing different digital variations of the bag (as well as other digital effects such as butterfly wings). You can also download images and share them online. Therefore, Coach was able to benefit from free social marketing by allowing users to share images on social media.


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