Like every other industry, retail is changing rapidly under the influence of Artificial Intelligence (AI). Two-thirds of large retailers already use AI in one form or another.
The list of benefits claimed for deploying AI in retail is impressive. Some of the eye-catching figures published by Business Matters magazine include a 10% uplift in revenue growth, 60% increase in profitability and 70% reduction in customer churn.
AI can be used right across a retail business, from back-office operations like ERP to marketing and customer engagement. It’s also having an impact at checkout. AI is transforming traditional point-of-sale experiences by making checkout more streamlined, personalised and better integrated with general service. It is also helping businesses optimise their own operations in areas like security and business intelligence.
Enhanced Customer Experience
Every retailer wants to give their customers the best possible experience to boost satisfaction and encourage repeat business. At checkout, that means keeping queues to a minimum, making sure customers can complete purchases in good time, and also personalising the service people get – including letting them pay and checkout in their own way.
AI tools can help speed up the POS experience in many ways. For example, computer vision AI registers items on sight, avoiding the mis-scans common with barcode readers, and has the potential to scan whole baskets in a split second. It can also be used to answer customer queries, such as asking for alternatives for items on display, by cross-referencing inventory databases quickly.
AI can also be used to make personalised recommendations, for example by drawing on past sales data to find common accompaniments for items a customer is buying. Or, if a retailer is running a loyalty scheme, it can use a customer’s own personal history to make recommendations or individualised offers and incentives.
As more and more payment options emerge, AI is also great at coordinating different systems and making it easier for retailers to accept different payment methods. This is especially important for aligning in-store and online sales channels. A customer buying an item in-store may prefer, for example, to pay online, especially if they have an online account or membership. AI can make this happen in an instant, for example by generating and sending a payment code for a customer to pay on their device there and then.
As well as helping staff members provide a high-quality checkout experience, all of the above can also be used to enhance the experience at self-service kiosks. AI will become more and more important in providing the support customers might need at self-service. In the not-too-distant future, voice AI chatbots will become commonplace on kiosks, taking on the role of a staff member to answer questions and provide help verbally.
Operational Efficiency
Aside from improving the customer experience, one of the biggest benefits retailers can gain from AI at POS is better security. Computer Vision scanning systems not only speed up transactions, they also serve as a powerful deterrent against theft, and can be trained to identify suspicious behaviour. Similarly, AI algorithms can spot patterns in potentially fraudulent payments. Looking forward, when combined with biometric technology like face recognition, AI will be used to process payments automatically and instantly based on a customer’s identity.
Adding AI to POS systems also strengthens data analytics and business intelligence for retailers. From all the transactions run through a POS, predictive analytics tools can make highly accurate forecasts of trends in sales, demand and customer preferences to inform future planning and decision-making. AI tools can also monitor inventory levels based on sales trends, predicting when items are likely to run out of stock and even placing orders automatically.
In summary, the way that AI is transforming and enhancing POS in retail presents a huge opportunity. It promises to help retailers win higher levels of customer satisfaction and loyalty, driving sales while improving efficiency, and also improving decision making.
If you’re interested in learning more about retail POS in your business, contact our experienced and friendly team to find out how we can help you.