Retail has been one of the sectors most transformed by digital innovation, and artificial intelligence (AI) is at the forefront of this change. Cisco has been instrumental in enabling retailers’ adoption of AI technologies to gain operational insights, enhance customer experiences, and improve operational efficiency.
Cisco is instrumental in providing AI analytics and automation of the infrastructure retailers leverage in their day-to-day business, as well as providing the resilient high-speed platform for AI innovation, but here are a few areas specific to the retail industry where Cisco and our ecosystem partners deliver line of business value to the retail industry.
Delivering Business Insights
Since the dawn of the eComm age, retailers have had detailed analytics of where consumers come from, how they traverse the site, what they look at and for how long, which cross-sell recommendations the consumer looks at and ultimately which do the add to their cart.
The same can’t be said of the brick & mortar stores… or at least it couldn’t – today with the application of computer vision and AI, in combination with existing data, we can get much closer – surpassing a simple count at the door to arrive at conversion rates. Instead, Demographics, shopping-groups, dwell, fixture and associate engagement, can help retailers make better decisions faster – optimizing staffing, pricing and merchandising, while monetizing that information and reducing costs.
Customer Experience Enhancement
One of the key applications of AI in retail is leveraging the insights derived in the store and online to improve customer experience, using generative AI tools that help retailers personalize the shopping experience for their customers. For example, through data analytics and machine learning, we can help retailers analyze customer behavior and preferences to provide tailored recommendations and promotions. Where the customer is unknown to the retailer, the analytics of their behavior can still drive engagement through interactive displays that engage customers and enhance their in-store experience.
AI enabling the Contact Center can greatly improve satisfaction scores, allowing known customers to receive rapid personalized service with purchase histories and other relevant information being used to deflect calls to chatbot functionality or arm the agent with the tools they need for a superior experience.
Inventory and Supply Chain Optimization
By analyzing sales data and inventory levels using machine learning algorithms, retailers can better predict demand more accurately, ensuring they have the right assortment of products, in the right quantities, at the right time. This minimizes overstock and out-of-stock scenarios, saving costs and maintaining customer satisfaction. Optimizing supply chain logistics, minimizing warehouse downtime, is key in getting products from the warehouse to the store shelves or the customer’s doorstep – potentially reducing the number of truck rolls required over time.
Operational Efficiency
The integration of AI into retail operations, supported by Cisco’s robust networking infrastructure, leads to significant improvements in operational efficiency. AI algorithms can be used to drive the automation of repetitive tasks such as price tagging, checkout processes, and even scheduling cleaning, freeing up employees to focus on customer service and other more valuable activities.
Staffing is one of the retailers’ largest costs, and still a significant challenge when it comes to filling shifts. Retail analytics can assist in identifying the best staffing ratios to boost revenue and control costs, as AI detects patterns in consumer traffic throughout the week.
Cisco’s AI-driven analytics also help retailers in energy management, dynamically adjusting lighting, heating, and cooling systems, even powering off infrastructure components, to reduce energy usage and costs without compromising customer comfort.
Security, Safety & Compliance
AI also plays a critical role in enhancing safety and compliance and reducing losses in the retail environment. Cisco’s computer vision solutions can detect suspicious transactions, allowing for more efficient and timely investigations. With the addition of Splunk to our portfolio, Cisco can now help with fraud detection by identifying unusual transaction patterns or actions that may indicate fraudulent activity. By providing these advanced security capabilities, Cisco helps retailers protect their assets and ensure a safe & secure shopping environment for their customers.
Data-Driven Decision Making
Finally, Cisco empowers retailers to make better, data-driven decisions, faster through sensible application of AI. With the vast amounts of data generated by sales, customer interactions, and supply chains, Cisco’s AI analytics platforms and partner ecosystem can turn this data into actionable insights. Retailers can use these insights to optimize operations, plan store layouts, and create targeted marketing campaigns that resonate with their customers. Cisco’s AI helps in forecasting trends, enabling retailers to stay ahead of the curve by anticipating market shifts and adjusting their strategies accordingly.
Cisco is helping retailers transform their operations across various fronts, from enhancing customer experience to optimizing supply chains, improving operational efficiency, securing assets, and enabling informed decision-making. As the retail landscape continues to evolve, AI technologies will remain pivotal in shaping the future of the industry, and Cisco is at the forefront of this technological revolution.
