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Day 2 @NRF 2023 : 4 Talks that Left us Inspired
Day 2 @NRF 2023 : 4 Talks that left us inspired The first day of NRF is all about getting used to the environment –
January 17, 2023
Does ChatGPT hold all of the answers for retailers? What about topics related to retail promotions? Discover how Cognira’s retail expert, Ethan Jack, challenges answers and offers a unique perspective.
Move over Google, ChatGPT is the new kid on the block. In just a matter of 5 days after launching in November 2022, ChatGPT reached 1 million users. Since then, it has quickly turned into one of the most talked about chatbot systems for both personal and professional needs.
Many have gravitated towards the platform because of its easy-to-use interface, intelligent responses it provides with limited information, and of course the speed it delivers answers. Though artificial intelligence has long been talked about, more industries’ ears have perked up since experiencing the impact and value of ChatGPT. (Yep, often it takes truly seeing to believing).
We’re putting ChatGPT to the test today by asking a series of complex promotion questions that only retail experts would be able to comment on. To spice things up, we’ve invited our very own retail expert, Ethan Jack, to challenge the answers and provide additional perspectives.
Short-Term Results:
Long-Term Results:
Promotions are a tool for a retailer to meet their customers’ needs while exceeding their expectations. This creates an opportunity for the retailer to utilize promotions to obtain strategic business objectives. The art of promotion management continues to generate this business benefit to reach quarterly and yearly business goals year over year.
In general, I agree with ChatGPT’s long-term answers, but have a few disagreements with its answer for the short-term, particularly with customer loyalty.
Surely, promoting a customer’s favorite product can begin building a connection with the customer. However, I do not believe customer loyalty is generated in the short term.
There is a famous saying “If you win a customer by price, you can lose that customer by price.”
Utilizing promotions to generate customer loyalty is a long-term effort. You need to continuously generate value for the customer by creating a personalized experience for them and ensuring their needs are met within the full promotion management cycle. This includes the right product choice, at the right price, through the channel of choice for customers (in-store or online – delivery, pick-up, etc.).
Mid-level retailers struggle to compete with larger and leading retailers on promotions for two reasons:
To better compete, I believe that the answer is in ChatGPT’s point number 2 – Personalization. Brick and Mortar locations and mid-level retailers need to give customers a reason to prioritize their time to visit their business. This is done by creating a relationship with your customer and offering a personalized experience.
This doesn’t mean that a mid-level retailer needs to match a large retailer on price. They need to tailor their offerings to meet the needs of each customer individually. A customer segment of 1.
All of ChatGPT’s points are important when selecting an AI Promotion Management Solution. In addition to these key factors, other questions to ask your evaluation committee are:
When evaluating software, many retailers focus on software supporting what they do today. When looking at integration this is extremely important to ensure that the software is compatible with your systems and you will be able to execute the benefits the tool is providing. However, when looking at workflow and business processes, retailers should focus more on the future state. Where can this software take my business and is the software backed by knowledgeable and capable people to get me there?
Personalization is key to the growth of retailers. An effective AI Promotion Management solution should be able to help you better understand customer behavior and give you the ability to create a more customer-centric promotional plan.
An effective promotional management system should help you identify areas in which you are overspending on promotions and allow you to create a more efficient and effective promotional plan.
Ensuring that these all align will help you create the most effective promotional plan. A promotion management system should help you identify the best deals to generate a promotional plan that meets your customers’ expectations without losing sight of your business objectives and maintaining a positive relationship with the vendor
Cognira is the leading artificial intelligence solutions provider for retailers. Cognira is passionate about helping retailers unlock valuable, transformative business insights from their data.
Better Promotions. Better Results.
To learn more, check out our website at cognira.com or contact us today to get started.
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Founded by experienced data scientists and retail experts, Cognira is the leading artificial intelligence solutions provider.