How AI is Redefining Customer Engagement in Retail Marketing

retail shopping

1.0 Introduction

Over the past few years, the retail industry has been experiencing a rapid evolution, fuelled by rapid technologic advancements, evolving consumer behaviour, and global events. All of these factors have in one way or another reshaped the way we shop.

Between the years 2020 and 2023, the retail landscape has undergone significant transformations with several key trends emerging over everything else. These trends have reshaped the way retailers engage with their customers and operate their businesses.

In this article, we explore how artificial intelligence technology is redefining customer engagement, making it much easier for typical retail stores to embrace omni-channel experiences.

2.0 What is Omni-channel?

In retail, an omni-channel experience refers to a consistent customer experience throughout multiple customer engagement channels (both retail stores and e-commerce). All aspects of the different channels generating sales should be well coordinated so as to keep the overall customer experience on the same level.

In this age, artificial intelligence technology is paving the way for traditional retail stores to embrace omni-channel. In order to be successful, retailers should focus on building an exhaustive omni-channel strategy, ensuring that all information about their product is the same across all channels. This enables the customer to pick up the product from the store, order it to the store or have it delivered to their address. Uniformity of payment options and returns should also be perfectly aligned. A well-executed omni-channel will benefit retail businesses in terms of higher customer satisfaction, time-saving and higher overall conversion rates.

3.0 E-commerce and AI Digital Marketing

Typically, retail stores embracing omni-channel have to put a lot of work onto their online experience. Digital marketing should be a main focus to their omni-channel strategy in order to build strong brand perception and recognition. Typically, marketing strategies were outsourced to expensive marketing brands that would dictate and plan the marketing program.

With the introduction of artificial technology (such as generative AI), the concept of AI digital marketing was born. As a result of this, small, start-up businesses (e.g. typical retail stores that want to operate an e-commerce channel) now have access to machine powered digital marketing tools and strategies. For the first time, smaller businesses can successfully launch a marketing campaign that is on a par with a marketing campaign of large and successful business. Indeed, large corporations are also referring to the assistance. of powerful AI digital marketing tools.

4.0 What is Customer Engagement in AI retail Marketing?

Customer engagement in AI retail marketing refers to how AI technology is leveraged to achieve strong customer interactivity in the retail industry. AI retail marketing enhances customer experience, increases brand loyalty and drives business growth.

In the world of retail, AI technology facilitates omni-channel interaction, enabling brands to interact with customers across various channels including in-store, e-commerce, social media, email, live chat and other channels. Retailers can leverage AI technology to provide highly personalised experiences through the analysis of data-driven customer insights. A few examples include product recommendations, offers and tailored marketing messages.

Customer satisfaction can also improve as retailers use AI to streamline omni-channel processes, provide quicker and higher-quality responses to customer requests and offer highly-personalised assistance.

5. How does AI impact Customer Engagement in Retail?

Customer engagement should be a priority for omni-channel retail businesses. Through the implementation of AI digital marketing tools, retail shops can improve the overall customer experience.

  • As a retail shop exploring the e-commerce channel, use AI digital marketing tools to analyse customer behaviour data. Use this information to intelligently present each client with unique content that will increase conversion rates. This is an example how going digital provides new customisation and personalisation options that were difficult to achieve in-store.
  • Jump into the world of AI-enabled customer service and build the links between in-store and e-commerce channels. As an example, build customised adverts of upcoming in-store products that are linked with customer queries to a related product.
  • Some retail stores tend to focus on visual discovery of their product more than others and may seem reluctant to go omni-channel as they worry about losing this important element to the sale of their product online. Use AI to provide visual discovery through 3D tech and AR-powered online shopping experiences. Engage your customers on the other side of the world just as they would by walking into your store. Craft the online experience to the nearest detail with the help of AI technology.

6. Best AI Digital Marketing Tools for Retailers

6.1 AI Content Writers

Writing software powered by artificial intelligence opens up a whole new world of opportunities for content creation. As a retailer with many options on how to target your online audience, you may opt for a review blog.

In order to complement your omni-channel strategy, retailers may opt for a blog where they review products, give information about upcoming products and generally build a community and prospect customers with content related to or specifically focused on the product sold in-store. This may be a viable option for retailers who want to start slow and do not have the budget to go big.

Managing a blog requires dedication and time as visitor expect rich and high-quality content. As a retail shop, you may not have time to produce content. With the next generation versions of AI content writers retailers can take control of their content and build highly attractive blogs for their audiences.

AI-powered content writers can produce SEO-optimised long-form content so it can rank highly on search engines like Google and Bing, making your blog visible and accessible to a wider audience. As a result, AI content writers make the process of content generation for your retail business highly cost-efficient and scalable.

6.2 AI Chat Bots

Whether you are selling exclusively from your retail shop or decide to adopt an omni-channel strategy, online customer support is a must for an effective customer engagement strategy.

AI technology has made virtual chatbots and assistants more than a bot that can answer in a very linear and robotic approach. With AI technology, your customers can expect highly personalized responses to their queries, taking customer engagement to the next level. 

Use AI-powered chatbots to promote particular products or to give individualised feedback based on a client’s preferences. You can also use virtual assistants to recommend other products/colors/sizes that may be more suitable for you. 

6.3 AI Video Generators

AI Video generators

AI video generators can create customised video content for your audience. This tool is recommended for retailers planning an omni-channel strategy with powerful and engaging video content.

Ai video generators creates highly customized video content in a fraction of the time taken to produce video content in a studio.  Build your video content from text or an image and engage your audience like never before.

  • Use video generators to produce explainer videos for your online visitors. Adopt your strategy as to whether you want your visitors to buy online or encourage them to drop by your retail store if you have a very successful in-store customer experience.
  • Are you selling complicated products that require demonstrations (such as grills etc.)? Go online and produce detailed demonstration videos highlighting the main features and benefits to your clients. Have prospect clients visit your retail store knowing already how a product works, making the overall customer experience seamless.
  • Are you more focused on social media interactions? Create a video with an AI video generator to capture the attention with eye-catching renders. Use AI to make your video high personalised and engage your customers.
  • Are you focusing your digital marketing strategy on a strong emotional connection with your visitors? Then take customer interaction to a whole new level with AI video generators and use human-like avatars to deliver a personalised virtual service.

6.4 AI Picture Generators

If your digital marketing strategy is focused on picture content, AI technology has got you covered as well. Use AI picture generators for highly personalised visuals (3D models, drawings, paintings, digital art and so much more). Engage your online customers with highly customised and personalised content.

7.0 Concluding Remarks

In this article, we have shown how artificial intelligence technology enables typical retail stores selling any type of product to enhance customer engagement by going omni-channel. As a retail store owner, you can now use the latest and most effective AI powered digital marketing tools to upsell, cross-sell and overall grow your business.