In brief
AI, cloud technology, indoor positioning and machine vision help retailers deliver personalised experiences, engage customers across channels and assess marketing events. To earn trust and loyalty, retailers must invest in technologies that protect privacy, uphold ethical standards and provide security.
An IDC research report projected that, by 2021, technologies such as mobile applications, cloud computing, the Internet of Things (IoT) and artificial intelligence (AI) would power digital products and services accounting for 60% of Hong Kong’s GDP. Retail is one of the key pillars of Hong Kong’s economy. As digital transformation gathers momentum, the industry is integrating digital technologies into both retail operations and marketing to deliver new, reliable retail experiences for businesses and customers.
One familiar example of digital transformation in retail is using AI to recommend products or content that match customers’ preferences and needs. Brands use AI systems to analyse consumer data, including customers’ gender, age group and occupation, as well as changes in their preferences. This enables them to deliver tailored recommendations in real time, giving consumers a more personalised experience.
How else can digital technologies such as AI and cloud computing bring fresh possibilities to retail? Here are several examples of retailers using technology to engage more effectively with customers.
Indoor positioning technology creates personalised shopping experiences
In recent years, Hong Kong’s retail landscape has undergone rapid change. Economic volatility, the rise of e-commerce, intense competition that squeezes profit margins, and consumers’ growing expectations of the shopping experience have all prompted traditional retailers to reassess their customer attraction and engagement strategies.
Using a company’s proprietary positioning and navigation technology together with Microsoft Cloud services, shopping mall mobile apps can provide customers with indoor navigation. They can also deliver relevant content in real time based on customers’ locations, helping attract foot traffic and encourage spending.
Big data analytics also enables retailers to deliver personalised experiences more effectively. Marketing teams and management can use the findings to improve marketing strategies and make better business decisions.
Cloud technology helps brands reach customers across channels
Today, visiting physical stores is no longer consumers’ only shopping option. They are increasingly accustomed to using the internet and smartphones to interact with brands across different platforms and channels. Retailers must adopt an omnichannel strategy so that customers enjoy a seamless, consistent experience both online and offline.
Traditional financial services, particularly insurance, have long relied on frontline sales staff to sell face to face. A local mobile app developer recognised Microsoft Azure’s reliability and strong scalability, and used its cloud services to develop a mobile app for an Asia-Pacific financial services company. The app allows customers in Asia to purchase and manage their travel insurance products on their phones anytime, anywhere, giving them greater flexibility and control over their insurance services.
Machine vision technology improves marketing event effectiveness
As customers’ expectations of their purchasing experiences continue to rise, loyalty reward programmes have gradually become an essential marketing strategy for brands. Customers want to connect and interact with brands that share their beliefs, so brands need to bring loyal customers together and build a “customer community”.
Marketers regularly organise marketing events to interact with customers and build brand loyalty. However, measuring the effectiveness and benefits of in-person events is often a major challenge. This is where AI and data analytics technologies can help. A local AI and data analytics start-up developed an AI solution for an international brand, using machine vision to analyse customer interactions at marketing events, including how long customers spend in each area. This helps the brand assess customer satisfaction, plan and design future brand marketing events more precisely, and continually improve the customer experience.
Looking ahead, digital technologies such as cloud computing and AI will continue to reshape every aspect of retail. To stand out in the digital age and earn consumers’ trust and loyalty, retailers must consider how to achieve breakthroughs through digital transformation. They must also focus their investment on cloud and AI technologies that protect privacy, uphold ethical standards and provide security, delivering safe, reliable new retail experiences for customers.
Original article URL: https://bit.ly/330qib1