The Power of Artificial Intelligence and Data in Retail: Enhancing Customer Experiences
Artificial intelligence (AI) and data have become the gravitational force to a retailer’s success, and it is critical for brands to communicate to consumers how information is leveraged to enhance their customer experiences.
Intelligent customer experience (CX) made its grand debut at this year’s SAP Sapphire and ASUG Annual Conference to an enthusiastic crowd of customers, partners, reporters, and analysts. The excitement around intelligent CX is rooted in unique industry needs, connected across departments and technology systems, fueled by insightful data, and adaptive to meet the changing needs of customers and businesses. It infuses connected operational and contextual data from across the entire enterprise with AI insights to support a seamless customer experience.
The interest in AI-driven solutions has spiked with the recent buzz around generative AI. Businesses like Swarovski, the world’s premier jewelry and accessories brand, are tapping into the power of AI to create deeper connections with their customers. Dr. Lea Sonderegger, CIO and chief digital officer at Swarovski, highlighted the value of AI in elevating personalization to the highest level and providing human-like conversational interactions with customers.
While there is a clear business benefit for consumers to share data, the real question is: “What’s in it for them?” Striking a mutually beneficial balance for data sharing is crucial for retailers. Without the right data, all the AI in the world will not amount to meaningful insights that drive personalized experiences, business growth, and customer loyalty. Consumers are wary of how brands use their data, but they still want personalized experiences, loyalty programs, and discounts that come from sharing data.
Retailers must help customers make the connection between sharing data and reaping the benefits of its use. Transparency and direct value are key to building trust between customers and brands. Retailers that provide transparency and direct value will enjoy widespread brand loyalty from personalized, value-oriented interactions.
The CX innovations showcased at SAP Sapphire enable retailers to personalize curated experiences for customers. SAP CX combines trusted data and responsible AI to unlock the customer experience, providing personalized interactions and product content. AI promises transformative advantages for all industries, with McKinsey estimating the economic value of generative AI for retail and consumer packaged goods industries at $400 to $660 billion a year.
As AI continues to evolve, businesses will anticipate consumer expectations, drive strong business outcomes, and take customer experience from simply AI-powered to AI-empowered. The future of retail lies in leveraging AI and data to create personalized, value-driven experiences that build lasting connections with customers.
