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How Retailers Can Excel in Holiday Sales With AI-generated Gift Choices

Nowadays, artificial intelligence (AI)-driven shopping solutions have completely transformed game marketing. 

Table of Contents

Introduction

1. Why Are Retailers Embracing AI Shopping?

1.1. AI Helps Enhance the Customer Experience

1.2. AI Driving Sustainability in Retail

1.3. AI in Tracking and Analyzing Customers’ Behavior

2. Case Studies

2.1. Google and Microsoft’s AI-generated Gift Choices

2.2. Simon offers gift purchasing with the AI Search Tool.

Conclusion

Introduction

The holiday shopping experience has come a long way, from customers battling crowds of shoppers in a busy mall or market to the convenience of browsing online. Today, artificial intelligence (AI)-powered shopping solutions have changed the game entirely. Even retailers have embraced the competitive advantage of AI shopping, with the expectation that AI will drive their sales in the holiday season of 2023.

This article will discuss how retailers can excel in holiday sales with AI-powered gift choices.

1. Why Are Retailers Embracing AI Shopping?

According to a global survey, around 71% of retailers have embraced AI this holiday season with the belief that it will enhance the shopping experience for their customers, with 69% expecting AI to boost seasonal revenue and increase customer satisfaction. This optimization fueled the belief that customers will purchase more when AI is embraced by retailers. Let’s see why in-store or online retailers are embracing AI shopping with some examples:

1.1. AI Helps Enhance the Customer Experience

Thanks to AI, retailers can make the customer journey much more convenient and engaging. Customers no longer have to wait in long lines when they adopt the buy-online and pick-up-in-store concepts.

A great example is Zara’s AI robot, which elevates the in-store shopping experience. Zara introduced AI robots, which help customers avoid long lines and reduce their waiting time; rather, customers can buy the product online and visit the shop to pick it up. The robot further fetches the product from the back of the automated retail store and speeds up the in-store collection process.

1.2. AI Driving Sustainability in Retail

According to the IBM Institute of Business Value, around 84% of customers prefer sustainable brands, and AI has the potential to achieve zero-waste initiatives. This is a good example of on-demand manufacturing, where it not only solves the problem of personalization for customers but also leads to fewer returns and a decrease in CO2 emissions.

One of the best examples is that H&M Group has harnessed the power of AI to make fast fashion sustainable. In 2021, H&M launched the Body Scan Jeans pilot project, where customers could have their bodies 3D scanned in-store, enabling them to try different denim colors and styles virtually. Following that, the machine learning program can convert the body scan into a paper pattern and measurement list, and then the customers could pick up the personalized jeans in-store.   

1.3. AI in Tracking and Analyzing Customers’ Behavior

Numerous AI-based solutions on the market enable retailers to track and analyze consumers’ behavior on brands’ websites or mobile apps. By analyzing a customer’s behavior, retailers can better understand what influences consumers’ buying decisions and personalize the online shopping experience, which greatly impacts the conversion rate.

Let’s take, for instance, Jazmin Chebar uses Cappasity, a cloud-based AI platform, to deliver a better shopping experience. Cappasity provides an AI-based analytics system that allows Jazmin Chebar to see how their customers interact with the 3D content and what they like and dislike about the product, which eventually creates better engagement between customers.

2. Case Studies

2.1. Google and Microsoft’s AI-generated Gift Choices

Numerous tools and applications help retailers provide AI-generated gift choices this holiday for their customers. Tech giants like Google and Microsoft have recently launched AI-generated shopping and gifting software to help your customers find the ideal gift.

Google and Microsoft have invented an artificial intelligence (AI) tool that can help customers find an ideal gift this holiday season. For example, if you are shopping for a 5-year-old boy, these tools can help you find the right gift, which is available online.

On the other hand, e-commerce retailers gain leverage as customers find the potential website where they can find the right product at the correct price.

2.2. Simon offers gift purchasing with the AI Search Tool.

This AI shopping tool was an experiment that turned out to be profitable for in-store shoppers and employees. The Simon search tool assists customers looking for in-stock items at participating retailers by visiting Simon’s property before and during their visit. This allows customers to select and buy their desired gifts from their desired retailers.

Simon Chief Marketing Officer Lee Sterling stated, “Shopping at our centers during the holiday season is always festive, and we are excited to make the experience extra special this year with our Simon ‘helper elves’ who will be using customized AI technology to make gift finding easier for busy shoppers.”

Conclusion

To sum up, retailers that leverage AI can bring a better in-store and online experience to their customers at the next level. Visionaries believe AI has the potential to bring a lot to the table, especially for retailers who are looking for more personalized experiences, sustainability, and better insight into customers’ behavior during online purchases. So, for the 2023 holiday season, retailers need to strategize their traditional marketing techniques and think of a broader picture with AI.

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