How to evaluate the return of investment of AI technology in Retail

The retail industry has been the site of many changes in recent years, many of which have resulted in less footfall and decreased profits. To contend with these changes, many retailers are seeking out new technologies that will allow them to get the most out of their locations. AI and IoT are two classes of technologies that have the potential to do just that. For efficient and effective adaptation that lasts, businesses want their employees to be kept in the loop with insights, metrics and KPIs while AI technology takes it course. 

There are a few well known metrics such as conversion rate and average spend per customer that store managers tend to look at when it comes to store performance, however, with having enough contextual data it is always difficult to know if a given store actually performs to its best capacity. That is why with an easy to use analytics dashboard the operation and area managers would be able to set a realistic goals and KPIs for each store. 

Many shoppers are now seeing stores as an extension of their online shopping process, they visit the store to finalise their decision or perhaps inspired by other alternatives in the store. For retailers that mean the need to provide a harmonious customer experience across their omni-channel business. AI retail tech platform such as alertiee.io enables customer experience managers, marketing and retail teams to close the gap between customers’ digital experience and their physical experience.

Calculate your potential increase in sales

Adapting AI and IoT technology comes with an initial investment. Moreover, you should consider setup cost in the case of IoT sensors, or cameras for computer vision and video analytics projects. Additionally, these technologies usually come with a monthly running cost, this includes cost of server, cloud storage, and subscription to user dashboard. 

It is always difficult to calculate the return on investment for AI technology in the retail industry. The initial operational effort and cost outweigh the promised benefit. Perhaps the most important metric to consider before embarking on any project is how the new technology will affect the bottom line and contribute to increased sales.

According to alertiee.io data, the following specific AI and IoT benefits can have a direct impact on business growth. First, measure and improve your conversion rate. Second, by having a better understanding of your customers through proper customer segmentation for targeted marketing campaigns. Finally, with the help of accurate heat map data, you can get a complete picture of the customer's experience during their visit and how they browse the store.

This year, alertiee.io launched a new ROI calculator for retail AI and IoT technology. A simple ROI calculator is the best way to calculate the potential increase in sales due to the use of AI and IoT. This calculator calculates the increase in sales as a result of adopting new technology. To use the calculator for free, go to www.alertiee.io.

About Alertiee.io

Alertiee will help you to provide a harmonious customer experience across your omni-channel business. Our technology enables customer experience, marketing and retail teams to close the gap between customers’ digital experience and their physical experience.

Alertiee.io technology can identify, advise, and support retailers to make location management decision and improve store performance using reliable data. With Alertiee Smart Space technology it would be possible for retailers to operate at peak efficiency, enhance customer-centric shopping experiences, and ensure that they are part of the future of retail. Alertiee can bring the following benefits to your business: 

Boost conversion rate

Use real-time conversion rate data to locate weaknesses and increase sales. Alertiee provides you proper sensor and analytics dashboard to assess inside and outside number of customers to provide a better conversion rate. 

Operational excellence

Create SMART KPIs for your team by knowing your store’s operational demand.

Spontaneous engagement

Engage with potential customers in the right place, at the right time, and with the right message using passer-by proximity marketing and engagement technology.

Knowing your customers

Create active customer engagement offers with video analytics. Understand your buyers’ attributes, and update store displays and offers in real-time.