Thriving in the digital age

Artificial Intelligence (AI) has emerged as a topic of much conversation and news hours, but could it also be an empowering tool for small gift shops and independents to thrive in the digital age?

From personalised customer experiences to streamlined inventory management, AI offers an array of solutions. But can they work for smaller retailers? I asked ChatGPT to tell me how it thought it could help, and then edited its words with my thoughts and views on its solutions.

virtual assistants can engage with customers and answer basic queries. But many a time I’ve found myself asking a chatbot if I can speak to a real person.

Inventory management, with its predictive analytics, can help anticipate demand patterns, ensuring that the right products are stocked in optimal quantities. This not only minimises storage costs and reduces wastage, but also enhances the overall shopping experience by preventing out of stocks and backorders.

Automating your supply chain processes can lead to cost savings and efficiency gains, allowing businesses to allocate resources more strategically. But I still feel like this would need overseeing with a retailer’s instinct.

AI can also help you implement dynamic pricing strategies, allowing you to adjust prices based on real-time factors such as demand, competitor pricing, and inventory levels. The algorithms optimise pricing decisions, helping you strike the right balance between profitability and attracting customers with competitive pricing.

AI-powered marketing tools can target specific customer segments with tailor-made advertisements. Through social media and online advertising platforms, you can reach your ideal audience, increasing the chances of converting leads into loyal customers.

For all business owners, keeping abreast of developments in AI is key. And in my view, some elements it can offer, such as streamlining more mundane tasks and admin, are definitely worth exploring. However, letting it own the relationship with your customers takes away the strength that smaller businesses and independents do well in terms of genuinely knowing their customers and interacting with them in person.

One aspect of AI you might want to consider lies in its ability to create personalised customer experiences. By analysing customer data, AIpowered systems can gain insights into individual preferences, purchasing behaviour, and trends.

Armed with this knowledge, you can offer targeted product recommendations, discounts, and promotions to entice customers and foster brand loyalty. The devil’s advocate in me would say a good shopkeeper knows these things instinctively already - but do you have the time to do anything about them?

Chatbots are another AI tool that allows businesses to offer 24/7 customer support. These

Sara Allbright is a director and co-founder of Retail100 Consulting, which is a consultancy firm with 100 years of retail experience that helps retailers and brands grow. Prior to Retail10 Consulting, Sara worked in buying roles at John Lewis & Partners for 18 years, predominantly for home and seasonal categories, including eight years leading gift and home fragrance buying. She has specialised in brand relationships and growing small emerging brands into market leaders. Sara is also experienced in own-label sourcing across multiple categories and countries.

Email: hello@retail100consulting.co.uk

Visit: www.retail100consulting.co.uk | www.linkedin.com/company/retail100-consulting