Technology and e-commerce have greatly changed the retail shopping experience making it more seamless than ever. Now that customers have experienced the convenience of browsing products online and purchasing in-store, they want more – and retailers must meet their demand.
However, it takes more than traditional strategies to offer an effortless shopping experience between both worlds — it requires innovation.
Leveraging the power of artificial intelligence (AI), brands can now bridge the gap between online and offline retail and deliver a more personalized shopping experience.
Importance of a Unified Retail Experience
Customers are increasingly favoring online shopping, yet, if they can get the products in-store, they will buy them the same day. One consumer report found that 61% of in-store shopping begins with online research. Therefore, retailers must connect digital and physical touch points to ensure customers can move effortlessly between the channels.
Connecting the two retail experiences gains a retailer more business. Research shows that 86% of shoppers would pay more for a better customer experience. With the use of AI, companies can create this consistent, engaging shopping experience that feels tailor-made.
AI gives retailers the power to connect with customers more meaningfully across online and offline platforms through the following ways.
Personalized Recommendations
AI technologies are redefining how customers discover and interact with products by suggesting uniquely tailored items. By analyzing past purchases and real-time preferences, apps and online platforms can help find entire product lines specific to their needs.
For instance, suppose a shopper is looking online for winter coats, AI can recommend outerwear based on their likes and even suggest complementary items like boots and scarves.
These recommendations can come from online platforms and as well as in-store kiosks. The increased personalization drives engagement and ensures customers feel understood, both of which can boost sales for retailers with already thin margins.
Virtual Try-On and Augmented Reality
With AI-powered augmented reality (AR), customers can visualize how products like clothing, makeup and items of decoration will look on them or in their homes.
For example, Sephora has an integrated virtual try-on technology with its Virtual Artist tool. Due to AI and AR capabilities, customers can use the app to see how different lipstick shades, eyeshadows or foundations will look on them.
The enhanced interactivity helps buyers make more informed decisions and ultimately reduces returns.
Interactive Digital Displays and Smart Mirrors
Market research shows that the global smart mirror market was worth approximately $596.23 million in 2024 and may reach around $1.23 billion by 2034.
When shoppers leverage technologies like interactive kiosks and smart mirrors in-store, they can avail a host of features like virtual try-ons, styling suggestions and item customization without stepping inside a fitting room. They can gain live product information, place orders and walk out with their items all without encountering a sales rep.
Leveraging AI for Data Collection and Analysis
AI solutions can drive the shopping experience because of the data it collects both online and offline. AI integrates data from multiple sources, such as e-commerce sites and in-store purchases and loyalty programs, an ability that gives them visibility into customer behavior, allowing retailers to tailor marketing strategies and deliver personalization.
Inefficiencies in inventory management costs retailers $1.1 trillion worldwide. AI prevents such losses by ensuring products are available when and where customers need them, minimizing overstock and stock outs.
Furthermore, AI-driven tools like Internet of Things (IoT) sensors and cameras provide insights into customer activities within physical stores. Retailers can track foot traffic, identify popular PoS and assess the effectiveness of displays to improve in-store layouts.
AI is shaping the retail industry by seamlessly integrating online and offline shopping. It is a tool that can help businesses meet evolving customer expectations and bridge the gap between digital convenience and in-store engagement, something that will potentially help companies drive consumer satisfaction and loyalty.
