RFID in the Foundation: AI’s Retail Success Must be Built on Accuracy
Revolutionizing Inventory Management
To operate effectively, retailers must have visibility over the stock they have and the stock they don’t have. This empowers retailers to ensure product availability, optimize orders and reduce costs. However, information can become inaccurate due to manual stock counts and inconsistencies when products are distributed across multiple locations. Deploying RFID technology can significantly increase inventory accuracy by up to more than 98%, providing retailers with accurate datasets that AI can leverage to drive success.
With RFID in place, retailers gain access to detailed information in critical areas such as stock levels, availability, location, and sales trends. By inputting this data into an AI ecosystem, the technology can analyze data almost instantly to identify any patterns in product demand. By using both RFID and AI, retailers can accurately predict when to replenish stock levels and better capitalize on peak shopping periods to maximize sales and increase revenue.
Transforming Customer Service
A retailer’s ability to deliver high-quality customer experiences can create a competitive advantage, which is why customer service is one of the most common areas where retailers deploy AI. In particular, retailers are using AI to provide personalized recommendations to customers, elevating customer service to a new level. However, if a retailer offers a personalized recommendation for a product that isn’t in stock, this results in canceled orders, and the customer experience plummets.
Being unable to fulfill customer orders clearly indicates low-quality experiences, and with a wide range of brands to choose from, making the switch has never been more accessible for customers. However, by leveraging the data provided by RFID, which is continually updated in real-time as stock is manufactured, transported, stored, and sold, retailers can confidently use AI to provide bespoke interactions without the risk of canceling orders. RFID solutions also provide accurate data on purchase history and preferences, and when analyzed by AI, it can provide highly personalized recommendations based on individual customer context. Ultimately, this helps deliver bespoke interactions that increase sales and brand loyalty.
The Perfect Pairing
While AI has been around since the 1950s, its vast potential remains largely untapped. Retailers are increasingly looking for new ways of how technology can reshape their businesses. However, retailers have to deploy AI effectively to achieve meaningful results. With RFID’s ability to provide accurate and detailed data in real-time, the technology offers the perfect match for AI to deliver on its promise of delivering exceptional customer service and creating new efficiencies in-store. Without this foundation in place, retailers run the risk of not being able to make a return on their AI investment.
Read the full article on The Retailist Magazine.
