Maximising Retail Potential: The Growth of Retail Media Networks and AI for Enhanced Customer Service

The retail industry has changed significantly, there’s no denying it. Retailers have transformed from an industry driven by transactions, cash, credit cards etc, to data-driven digital media. Retail media networks (RMN) eg Amazon, Wayfair, Walmart etc, are the big players with 70% of brands having dedicated budgets to spend on these platforms. Some retailers and brands even estimate that ad sales alone will surpass merchandise sales within the next five years. Yikes – that is just crazy!

It is estimated that due to the rapid growth of the market reaching $30 billion in revenue, retail media networks will eclipse traditional television advertising by 15.4% - which historically has proven to be the most successful when it comes to advertising.

So what can retailers do to remain visible in such a crowded market?

• Expand into new territories
• Brand collaborations
• Enhance personalisation for targeted advertising              

Let’s also not forget AI. Ah yes, the dreaded artificial intelligence. Whilst there will always remain a place for human interaction, personal shopping experiences and more (which I personally feel that you cannot underestimate the power of connection and strong customer service), we can’t ignore that AI is rapidly growing also and, if ignored, brands could get left behind.

The opportunities for AI for 2024 and beyond include:

• AI Customer Services for all retailers:
  • Using Generative AI for more “humanised” chatbots creating a personalised experience to handle emotional queries from customers.
  • Continue to explore AI in growing sectors across beauty, interior design etc.
• AI for clothing & department stores:
  • Research shows that 63% of shoppers start their product search on Amazon, whilst only 3% shop on the brand’s website – a shocking stat that demonstrates the power of RMNs. Brands need to invest time and money into tech solutions, such as plug-ins, to entice customers at the start of their shopping journey back onto their own retail platforms.

Wouldn’t you agree that owning a retail business can be a ROLLERCOASTER! From mega busy periods and high sales to low seasons and limited customer interaction – so many challenges. And let’s not forget everything else that goes into it – the price negotiations, manufacturing, quality control, product design and approval stage, competitor analysis, promotional periods, trading the business to maximise its full potential.

Need I say more?

And then there’s everything else that goes into running the business – accounts, invoices, POs, MOQs, credit control, customer service, operations, marketing, sales.

If you feel overwhelmed with all of this, then reach out to us at IVA – we are an experienced team of ex-corporate retail professionals across buying, merchandising and design – we’ve got your back! We can embed ourselves into your systems as an extension of your existing team so that you have the full support available to grow your business and brand.