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4 Generative AI Strategies Retailers Can Leverage for a Successful Holiday Season

Updated: Nov 22, 2023

AI-powered commerce experiences will drive $194 billion in global online holiday spending this year.

According to Meta Seasonal Holidays, customers will be using less in-store (-4%), search (-17%), and store websites (-16%) as discovery channels during the upcoming holiday season. AI can innovatively advance businesses as the world navigates uncertain economic times, but only if they act before the shopping season starts.

The most successful retailers will use predictive and generative AI to set themselves apart from the competition to drive revenue because consumers won’t proactively look for ways to spend as they have in previous years. Here are 5 strategies for using generative AI:

Strategy 1: Use Generative AI to Improve Your Product Discoverability

Retailers' adoption of predictive and generative AI will impact holiday spending by enhancing operational efficiency and personalizing shopping experiences. It transforms the product discovery process, mimicking in-store assistance online, with sales associates guiding customers to find the right products.

Case in Point: EBay Inc. wanted to expedite product listings and built a tool based on Open AI that creates a product description based on sellers' data about a product category, condition, color, or brand. After a pilot, their customer satisfaction score jumped to 80%, among eBay’s highest CSAT scores for recent new feature launches.

Strategy 2: Use Generative AI to Improve Your Sales

In Salesforce’s Connected Shoppers Report, 92% of retailers say they are investing in AI more than ever to improve shopping experiences, and nearly 60% of retailers say they are already using AI to help store associates make product recommendations to shoppers.

With Commerce AI tools, brands can also increase sales by analyzing business insights and customer data to better enhance and personalize the buying experience from discovery to delivery. Proven AI solutions offer the capability to boost your operational efficiency, minimize business costs, and optimize revenue streams.

Case in Point: The National Retail Federation reports that Levi is conducting a controlled experiment on, using AI-generated models to diversify body types for an improved consumer experience. This AI technology helps generate supplementary images, paving the way for a more personalized and engaging shopping experience.

Strategy 3: Use Generative AI to Jumpstart Content Creation

Salesforce Research shows that 58% of retailers use generative AI to produce creative assets for ads, emails, social media, and websites, and 39% are evaluating the potential use of generative AI.

AI automates campaigns, analyzes performance, segments customers, tailors messaging based on purchasing habits, and enhances content, offers, and recommendations for better conversion. AI can also identify and target potential new customers interested in your product or services.

Here are ten ways generative AI can be leveraged for content creation:

  1. Create high-quality written content, generating blog posts, articles, and product descriptions.

  2. Translate content into multiple languages, making it easier to reach a global audience.

  3. Improve existing content by suggesting edits, refining language, and making it more engaging, while maintaining consistency in tone and style.

  4. AI-powered chatbots and VAs can handle customer inquiries, provide information and engage in natural language conversations.

  5. Generate images, videos and animations for product images and video ads.

  6. Analyze user behavior and preferences to deliver personalized content recommendations, enhancing user engagement and retention.

  7. Generate social media posts, hashtags and captions, recommending the best times to post for maximum engagement.

  8. AI algorithms can curate content from various sources, helping creators find relevant articles, images and videos to share or reference in their work.

  9. Transcribe spoken content in audio or video files and generate subtitles, making content accessible to a wider audience and improving SEO.

  10. Analyze content performance, providing insights into what works and doesn’t. This data can inform future content creation strategies.

Case in Point: Sephora has explored using AI chatbots and virtual try-on tools, which involve generative AI, to simulate makeup looks on customers. The North Face uses AI-powered chatbots to engage with customers and provide information about products and activities based on user preferences.

Strategy 4: Use Generative AI to Accelerate Software Development

AI doesn’t just help sales and content; it also helps increase productivity to accelerate software development for retailers.

OSF Digital has been at the forefront of AI development since 2018. As a Salesforce AI-powered partner, OSF delivers AI expertise, experience, and resources to its customers. Based on their own experience of using AllAi, they have found that their developers write 42% more lines of code, close 40% more tickets monthly, and spend 11% less time on assignments.

“With a suite of AI tools, AllAi enhances human capabilities, empowering developers to increase efficiency and accelerate time to market. By spending more time building and less time fixing, retailers can achieve a faster time to value and a lower total cost of ownership,” says Gerard Szatvanyi, CEO of OSF Digital.

Remember: Savvy retailers will also use predictive and generative AI to win this holiday season.

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