Hype is a concept used by marketing teams to refer to intense promotional actions for a product or service over a short period, focused on topics that are highly discussed at a given moment. The use of digital technologies is essential, but recent innovations, such as artificial intelligence, allow companies to plan practices that go far beyond hype.
In this sense, personalization in customer relationships is the big leap. ‘When we talk about digital transformation and the future of retail, today we must turn our attention to artificial intelligence. Will it replace people in some activities? Will we have stores without salespeople? Beyond these questions, we must understand how AI can contribute to the customer journey,’ says César Baleco, CEO of Grupo Irrah.
The organization specializes in technological products and solutions focusing on retail. It includes e-commerce tools, store management, and automation of contact channels between retailers and customers—including AI-powered chatbots. It has been in the market for nearly 20 years, a period during which it has witnessed intense and accelerated technological innovation. ‘Now, we see AI coming to revolutionize retail,’ he notes.
An example of personalization in customer service, enabled by artificial intelligence, is what could reconfigure the concept of a store. Whether physical or virtual, standardized service will give way to personalized relationships, made possible by algorithms and increasingly deeper and faster data analysis, ‘practically in real-time,’ as the expert points out.
‘Purchase history, interactions on social media, the words used by the consumer both in speech and searches, how this consumer behaves in the store—all of this provides information for the technology to deliver responses that align with the customer’s specific personal preferences, satisfying their needs and desires,’ explains the CEO.
This way, retail will not only be able to meet consumer demands but, more importantly, anticipate those demands and needs. The collection, storage, and analysis of data through artificial intelligence expand exponentially; the generative capacity of the technology enables tailored, personalized responses, ‘custom-made,’ in Baleco’s words.
The expert explains that retail stores will become as personalized as user profiles on streaming or music platforms today, which already offer consumers menus of movies and music that not only meet their preferences but also keep them engaged and loyal. ‘Presentations of new releases, discounts, and promotions can be customized for each customer,’ he predicts.
Customer behavior at any given moment can also be understood. That is, despite search, purchase, and viewing history, artificial intelligence tracks potential shifts in taste or even the consumer’s sentiment at the moment of interaction. ‘An AI-powered chatbot can detect a shift in mood due to frustration over an unmet need, for example.’
Investing in technology providers that offer an ecosystem of solutions (management, customer service, sales) is therefore essential for retailers to achieve full digital transformation. After all, notes the CEO of Grupo Irrah, segmented and personalized actions are meaningless if, when the customer needs to continue their journey, the system is not structurally prepared to handle demands and workflows.
