Dehan WijesekaraFollow
30 October 20206 min read
Field of artificial intelligence was formally found around 1956 and from then scientists researched and improved algorithms to create something better than the human brain which is capable of understanding, self learning and able to predict based on the data on hand. Examples for most common AI based solutions you can experience nowadays are Facebook face recognition feature, Apple Siri, Spelling and grammar correction tools, etc. I'm sure you have already seen those features in your day to day online life. In this article I'm focusing on which features you can introduce to supermarket businesses.
World leading supermarket chains recently started working on AI to learn about their customers and expand the business opportunities. In this article I'm expected to introduce what kind of AI based solutions can integrate into supermarket business and the benefits they return.
1. Identify products customers buy together
It's possible to predict a possible list of products customers may purchase by looking at their initial buying items. If a customer is using an online system to reach the store, the system can prioritize to show advertisements and products with high probability of purchase to convince the customer to buy more items.
AI is more than just a series of “if, then” rules, such as “If you buy pasta, you get a coupon for pasta sauce”. A true AI can recommend highly relevant products even though you have never bought them before
2. Recommendation system
Assume if you could get recommendation from a computer program regarding how you should provide offers and advertisements, which rates, to whom, which products etc.. you can easily plan your promotions and offers. This helps to cover your target sales sooner than you expect.
3. Excess price prediction
There are certain periods of every year, some product item prices go up and down bcoz of additional supply or lack of supply. if you could get a prediction before this happens may be you could align to manage the situation by managing your inventory stock.
4. Predict product demand
You can predict your next year sales growth, festival seasonal product demand with AI. Trust me Artificial intelligence can do this more accurately and faster. By knowing the demand you can get ready for the sales and make not only your customers happy but also generate an extra amount of profit by sales.
The massive amount of transactional data that retailers collect is a true feast for machine learning algorithms. They can analyze hundreds of millions of shopping baskets and recognize complex market structures, consumers’ shopping behavior and common reactions to external stimuli such as discounts and promotions (including their form, time and placement). The algorithms can furthermore conduct thousands of micro-experiments and evaluate their effectiveness on the go.
In order to train an artificial intelligence algorithm, you need millions of data to reach the accuracy level. Best way to collect data through a computerized system or an online ordering system. By deploying an online ordering system not only you can collect the data but also you can prepare and get ready for the next level online shopping trend which is growing very fast among the people where customers can shop from home or anywhere they are.
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