AI-Powered Product Selection: The Future of Retail
Customer data analytics firm dunnhumby has launched a new suite of tools that use artificial intelligence to localize assortment selection and optimize planograms. This innovative technology is set to revolutionize the retail industry, enabling retailers to build store-specific assortments centered on what the customer wants.
The future of retail is here
In today’s dynamic retail landscape, keeping up with customer expectations while outpacing local competition is crucial. dunnhumby’s new assortment tool, powered by advanced AI, allows retailers to make data-driven decisions, ensuring that their stores are stocked with the products that customers want.
“Our new assortment tool, powered by advanced AI, allows retailers to build store-specific assortments centered on what the customer wants.” - Jenn Dabbelt, dunnhumby global head of product
The AI model uses purchase data to determine which products are best for individual stores. For example, protein shakes might sell better at stores near a gym. By looking at the relationships between products and stores, advanced recommender systems can detect relationships and highlight opportunities with a much lower risk of error.
The right products, in the right stores
The planogram tool takes a similar analytical approach at the shelf level, using historical data to choose assortments that optimize sales potential. This means that retailers can create a more efficient and effective in-store experience for their customers.
The new tools also feature predictive AI that estimate what would happen when products are introduced or removed from a store. For example, removing a certain pack size or flavor of cookie will not necessarily reduce category revenue by its full sales value. dunnhumby’s AI lets retailers understand how much of those sales would transfer to a similar remaining product in the assortment, creating a more accurate forecast.
Making informed decisions with data
With these innovative tools, retailers can gain a competitive edge in the market, improve customer satisfaction, and increase sales. The future of retail is here, and it’s powered by AI.
