Nikki Baird of RSR Research points out the difference between retailers practicing personalization and relevancy. Personalization can be selfish when the motive is simply to sell more. Relevancy can be noble when the desire is to satisfy more.
This is a great observation and a common pitfall with personalization. How can retailers use relevance (or personalization) to present offers that truly help shoppers?
Shoppers say they they most value offers on items they regularly buy, offers related to personal events, and recommendations on relevant new items, according to a recent IBM survey of 30K shoppers (Institute for Business Value 2011). Continue reading
Artificial Intelligence (AI) was recently top of mind when IBM’s Watson computer challenged Jeopardy’stop two human players–and won. Does this change the way retail should think about AI?
AI has advanced since the 60s with gains in processing speed, memory, and quantitative models. In retail, the quality of data has improved not only with NLP, but also with new data sources such as demographics and purchase history.
AI already drives in-store digital media. It also serves operations, merchandising, and marketing. Distributed intelligence powers inventory management. Analytic processing enables site selection, marketing mix modeling, and demand forecasting. Continue reading