Future Marketing Strategies with Enabling Technologies
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Future Marketing Strategies with Enabling Technologies
Updating technologies in retail sector is inevitable. Indeed, the consumers are looking for retailers who can respond to their needs efficiently and eliminate waste. Artificial intelligence is helpful in such instances, allowing business people to convert data into insights (Huang & Rust, 2018). In this paper, the technology is discussed, with attention to the service quality attributes and marketing applications in retail sector. Analysis of the future for AI and applications is also given. It is revealed that applying the technology in retail is vital because it leads to increased sales and profits.
Explaining Artificial Intelligence
Artificial intelligence is a branch of computer science. It focuses on designing intelligence agents with a capacity to perceive the environment and take the necessary actions (Intel Corporation, 2020). The computer systems have the capacity to perform tasks that require human intelligence such as reasoning, speech recognition, and visual perception. The goal of designing the systems is to understand human intelligence and build programs that exhibit the behavior (Huang & Rust, 2018). The programs are different others because they utilize qualitative information. They have four components, namely vision, expert systems, natural language processing, and heuristic problem solving. It can be applied in retail industry in areas such as sales, CRM applications, logistics, and payment services.
The Service Quality Attributes and Marketing Applications for the Sector
Artificial intelligence is utilized in the retail sector due to a range of service quality attributes. Foremost, the technology leads to improved shopping experience because it is personalized (Huang & Rust, 2018). The information captured by the technologies after the purchases is analyzed and used to make tailor-made recommendations. The customer also enjoys efficiency because the programs designed to perform human tasks. They can find products or services conveniently. Artificial intelligence is also used to create adaptive homepage, where digital portals are designed to create an e-retail experience that reflects current and previous shopping behavior. Still, interactive chats programs are used to answer questions about products and services.
Retailers use artificial intelligence in marketing segmentation, where they use the customer insights to provide relevant services and products. They partition the markets based on the behavioral, psychographic, and other information offered through the technologies. Weinstein (2018) affirms that doing so is directly related to creating high-value customers. The packages are likely to have high benefit with the aspects of service, quality, price and image in mind. It leads to increased customer retention, sales, and profits. Intel Corporation (2020) adds that artificial intelligence helps marketers to enhance demand forecasting and optimize product placement. They can also engage in responsive research and development and gain a dynamic outreach.
Future of the Technology and Applications
Retailers will continue to use artificial intelligence to provide personalized experiences. The bricks-and-mortar channels will increasingly become unpopular, requiring the business persons to find applications that can perform human-like tasks (Huang & Rust, 2018). At the same time, the programmers must design superior application to eliminate barriers that have limited their use. Failure associated with the technology has affected business-customer relationships negatively. It explains why large scale retailers such as Wal-Mart and Amazon have been slow in adopting the cutting-edge technologies despite their benefits. Given this, more innovation is needed so that the applications are applied in supply-chain, customer service, and other sensitive areas.
Certainly, businesses can attain success by applying artificial intelligence. The technologies are defined by their ability to perform tasks that require human intelligence such as reasoning, speech recognition, and visual perception. When applied in retail, marketing segmentation and improved customer experience becomes a reality. The technologies will define retail in future if innovations are made to eliminate barriers and failures.
References
Huang, M. H. & Rust, R. T. (2018). Artificial intelligence in service. Journal of Service Research, 21(2), 155-172.
Intel Corporation, (2020). Artificial intelligence in retail. Retrieved from https://www.intel.com/content/www/us/en/retail/solutions/ai-in-retail.html
Weinstein, A. (2018). Superior customer value: Finding and keeping. London: Routledge