ChatGPT, the most talked-about artificial intelligence technology in the last year, is the key to the retail and consumer goods (CPG) sector thanks to its ability to provide accurate and personalised answers to consumer questions, as well as making it easier for companies to better understand their customers.
In this article you will find out how to use this technology in the retail sector, read on!
Areas in which to implement ChatGPT in retail
This AI can be incorporated into different phases of the business, including production, advertising and customer service. Thanks to the multiple use cases offered by ChatGPT, it is changing the way retailers interact with their customers, optimise their operations and maximise their sales.
Do you want to find out in which areas to implement ChatGPT in the retail sector? Within each area there are numerous applications in which to use this technology. Here are some examples:
Customer Care and Customer Experience (CX)
- ChatGPT integrated with an analytics platform, can analyse customer purchase history to make personalised product recommendations.
- Social Listening in social networks and opinion analysis, to provide valuable information about brand reputation and customer preferences.
- Virtual assistants to help customers find products on the web, resolve doubts, manage purchases, process orders, etc.
- Customer satisfaction analysis: elaboration of surveys based on recent purchases and analysis of responses.
- Monitoring of customer interactions
- Descriptions, product guides and labels: can help produce detailed product descriptions based on photographs and provide detailed product information (components, ingredients and nutritional values in the case of food, fact sheets, etc.) as well as help resolve problems and frequently asked questions.
Operations and processes
- Process and/or platform support in assistance, training and generation of manuals or technical documentation.
- Inventory management, for the optimisation of assortment for a market, customer group, region, m2 of shop, seasonality, etc. Inventory tracking, programming of alerts when new product orders need to be placed or when there is overstock, etc.
- Identification of units of need.
- Demand forecasting.
- Price optimisation, analysing competitor prices and supporting decision making, e.g. how to adjust prices to maximise profits.
- Supply chain management; monitoring, identifying bottlenecks or providing recommendations to improve efficiency and reduce costs.
- Product returns, analysing feedback and ratings or monitoring the quality of products sold for optimisation.
- Improving ROI: analysing results to provide recommendations to reduce costs and improve profitability or identifying areas where costs can be reduced and providing more profitable alternatives.
Marketing
- Creation of customer profiles through integration with other sources such as social networks, purchasing, CRM, analysis of similar profiles, financial projections, etc.
- Identifying purchasing patterns.
- As a segmentation tool, identifying groups of customers with similar behaviour.
- Analysis of customer preferences, providing recommendations for developing products that meet customer needs or as a tool for generating ideas for new products and improvements to existing ones.
Analytics, data, reporting and BI
- Data analysis: Providing valuable information and conclusions based on analysis of consumer behaviour, market trends…
- Market research, based on information searches, market trends, competitor monitoring, etc.
- Generation of reports with the main results, variations, comparisons…
- Profitability analysis based on the review of costs and expenses and identification of areas where costs can be reduced and provide more profitable alternatives.
ChatGPT success stories
Many companies in the retail and CPG world have already implemented this technology in their processes. Among them are:
H&M
Swedish fashion brand H&M launched a ChatGPT-based chatbot on its website to help customers find products and answer frequently asked questions. The chatbot uses natural language to understand customer queries and provide accurate, personalised answers.
Sephora
Cosmetics retailer Sephora has used ChatGPT in its mobile app to help customers find products and provide personalised recommendations. The chatbot uses customer behavioural data to understand customer preferences and provide relevant product recommendations.
Domino’s Pizza
The restaurant chain has implemented ChatGPT on its mobile app and website to allow customers to place orders via chat. The chatbot uses natural language to understand customer orders and provide a seamless ordering experience.
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