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THE FUTURE OF RETAIL

The retail market is proving to be one of the most susceptible to digital transformation

According to the results of the "Artificial Intelligence in Retail: Russian Business Practice" research, conducted by RAEC, NRU HSE with the support of Microsoft, Russian retail companies are actively introducing AI into their business processes: - 42% of Russian retailers are already using technologies and solutions based on artificial intelligence - 35% plan to implement artificial intelligence algorithms in the next 5 years - 77% of Russian companies in the retail segment are planning a full-scale implementation of artificial intelligence by 2024

DIGITAL TRANSFORMATION OF MARKETING
AND ADVERTISING

The international research agency Global Market Insights identifies the following priority areas for using AI in retail:

• merchandising automation
• predictive analytics
• automated personal advertising
• optimization of the layout of the retail space

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Deep study of the target audience

Personalized marketing

The main task of personalized marketing is to generate messages that evoke a personal response from the buyer, and form a deep emotional connection between the brand and the target audience. The basis of personalized marketing is omnichannel analytics of purchasing behavior and maximum personalization of communications with the consumer. Before setting up individual communication with a buyer, you need to deeply study your target audience. According to Nielsen's research, ad messages with strong emotional responses increase sales by 23%. A deep emotional connection also increases loyalty, and 70% of emotionally involved consumers spend twice as much money on brands to which they are loyal.

According to Criteo 53% of shoppers make purchases exclusively in a physical store. They don't use loyalty cards and don't install mobile apps. The retailer knows absolutely nothing about this segment of the target audience.

Is it possible to build reliable personal communication with clients whom we know nothing about?

Thanks to an automated system of impersonal video analytics, the MAIA system collects and accumulates data about customers in a physical store, combining them with loyalty program profiles.

When interacting with a buyer, the MAIA system monitors feedback: how long the buyer was interested in the advertising message, and what kind of feedback it caused. This allows you to not only generate personalized ads, but also track their effectiveness by adjusting your marketing strategy in real time.

Such a careful approach to customer attention turns out to be more effective, since it does not create the illusion of excessively intrusive attention on the part of the retailer, but at the same time forms a feeling of personal attention to the needs and desires of each customer.