The realms of retail and e-commerce are evolving rapidly, with artificial intelligence (AI) at the forefront of this transformation, reshaping them to be more efficient, competitive, and personalized.
New tools are abound, ranging from inventory management—where AI predicts demand before products are requested, optimizing warehouse and logistics management—to cashier-less stores and cashier-less checkout experiences.
Tools supporting enhanced customer experiences include chatbots (including voice-activated ones) assisting customers during purchases, augmented reality for virtual trials of accessories, clothing, makeup, cars, and more. Additionally, visual search allows users to upload product photos to initiate a search, digital fitting rooms suggest clothing combinations, and robots guide customers to desired products.
Unifying Digital and In-Store Shopping Experiences: An Interview with Barbara Labate on AI-Driven Personalization and the Future of Retail
A distinct aspect involves using AI to analyze the psychology and emotions of each customer to boost purchases. Algorithms process emotional responses and customer behavior during past shopping experiences to identify optimal offers for each visitor, whether in the digital realm or in-store, utilizing facial recognition technology to identify behavior, emotions, age, gender, and other physical qualities (considering privacy issues).
Therefore, the digital and physical—online and in-store experiences—must be viewed as integral parts of a unified experience.
Today, we discuss these trends with Barbara Labate, current CEO of ReStore—a fully customizable Saas e-commerce platform for grocery retailers to sell online using their POS as digital hubs for pickup or delivery services. Barbara, a serial entrepreneur with several success stories in the retail and marketing world, sheds light on how AI’s potential is being harnessed and the challenges to overcome for broader adoption.
Barbara, let’s start with the focal point of retail and e-commerce strategies: the customer. How can AI enhance the customer experience?
Certainly, a personalized browsing experience tailored to customer habits, such as purchased products, purchase frequency, and willingness to try new products, could yield excellent results in terms of receipt value and insights! We are working to make shopping a bit smarter and more customizable, avoiding showing cat food to someone with a dog!
We deliberately combined e-commerce and retail, emphasizing the importance of “phygital” and how physical stores can be integrated with digital and AI. What trends, opportunities, and challenges do you see?
I currently see a missed opportunity, little dialogue between physical and digital, and above all, the idea that consumers behave identically in the two different universes, which is neither possible nor probable. In fact, I believe the concept of multichannel is fundamental in the current business landscape. The synergy between home experiences and digital immersion in the physical world can create a powerful and engaging mix.
Another crucial aspect for those in your profession is inventory and supply chain management. How can AI assist, and where are we today?
Several players in Italy already offer inventory management through machine learning and AI. I believe a model must be found to scale these products across distributed networks in thousands of points of sale, often managed by individual entrepreneurs with limited technical knowledge. In this industry revolution, it’s essential to allow current managers and supervisors to envision increasingly automated and accelerated work.
How do you foresee AI influencing the retail sector in the near future? What difficulties might arise?
I think a potential risk is the over-fragmentation of offerings, creating millions of micro user clusters, inevitably leading to a loss of the overall vision. So, while personalizing is excellent, caution is needed to avoid excessive segmentation of offerings, communication, and thus the measurability of digital tools themselves!
Multichannel strategies, logistics, communication, skills: these are the other aspects to carefully consider and integrate for those who genuinely want to incorporate Artificial Intelligence into their company’s processes and store networks.
Bringing together data, strategy, and artificial intelligence (AI) is the correct approach for a comprehensive and accurate view of the customer and how the company and network should be modeled.
Embark on the journey of transforming your retail and e-commerce experience with the power of Artificial Intelligence. Neodata Group, a leader in AI solutions, is here to guide you through the future of intelligent retail. For inquiries and consultations, reach out to Neodata Group at info@neodatagroup.ai. Elevate your business with AI-driven innovation!
Barbara Labate
Barbara Labate is a successful entrepreneur , In 2004, she founded her first startup and went on to achieve great success with RisparmioSuper. Currently, she is the founder and CEO of ReStore, a leading e-commerce portal in Italy.
