According to a recent blog by Klarna, AR is set to dominate the in-store and online landscape, especially in the fashion retail sector. With 81% of respondents expecting AR to elevate the in-store shopping experience using Virtual dressing rooms and AI-driven fashion advice. It's clear that this technology is gaining popularity, offering convenience and eliminating the hassle of trying on clothes physically.
An augmented reality screen for trying on lipstick at Nordstrom in New York City. Bethany Biron/Business Insider
Shoppers are embracing the idea of robots and virtual personal shopping assistants, with more than half open to the concept of robot fashion advisors in-store and virtual personal shoppers online. A study by Shopify found that products with AR experiences have a 94% higher conversion rate compared to products without AR.
But, if retailers are to jump on board of this wave, how can they track the ROI of these initiatives in a physical store? This is where technologies like Aura Vision step in & help them track analytics in-stores just like online. By harnessing visitors demographics data, dwell times, and conversion rates, retailers can ensure they have the right intelligence infrastructure in-store to optimize their technology implementations, ensuring they deliver immersive experiences that drive business outcomes.
Dynamic Pricing Strategies in your stores is a thing. Here is what you need to know 👇🏻
Almost 30 percent of all retailers in the UK and Europe are now using dynamic pricing, with the biggest growth occurring in sectors such as consumer goods, grocers, consumer electronics, sporting goods, DIY and home improvement.
Dynamic pricing offers an opportunity to maximise total revenue by setting multiple price points. Here's how:
Real-Time Price Adjustments: By analyzing store data such as footfall peak traffic, demographics, and product engagement, retailers can make pricing decisions that maximize their revenue potential. For instance, during peak hours, retailers can increase prices to capture the heightened demand, while during slower periods, they can decrease prices to stimulate sales. By considering additional data points like inventory availability and market trends, retailers can fine-tune their pricing strategies and implement timely price adjustments directly in-store.
Dynamic Promotions: In-store analytics can provide insights into customer preferences by demographics & purchase trends. Retailers can leverage this data to offer personalized pricing to customers based on their profiles and behaviors. Personalized discounts or offers can be tailored to specific customers.
Location-Based Pricing: In-store analytics can help retailers identify geographical trends and customer preferences specific to each store location. By understanding the local market dynamics, retailers can implement location-based pricing strategies. This may involve adjusting prices based on factors such as regional demand, competition, or local economic conditions.
For dynamic pricing to work, businesses need to understand a lot about their customers. How much are people willing to pay for your services? How does this demand change over time? It has always been possible to get these sorts of insights using traditional market research. But as companies have become more digitally mature, the power of real-time data has made dynamic pricing faster and more powerful. This is where in-store analytics AI, such as Aura Vision, can significantly help retailers in implementing dynamic pricing strategies:
Real-Time Data Insights:Aura Vision's AI-powered analytics can provide retailers with real-time data on customer behavior, foot traffic patterns, and product & staff interactions within the store. This data can be used to make informed pricing decisions and optimize pricing strategies based on real-time market conditions.
Customer Segmentation: Aura Vision's AI algorithms can identify and segment customers based on demographics, buying behavior, and preferences. Retailers can use this information to tailor pricing strategies for different customer segments, delivering personalized pricing offers that resonate with individual customers.
Performance Evaluation: Aura Vision's analytics can provide retailers with comprehensive insights into the effectiveness of their dynamic pricing strategies. Retailers can track the impact of pricing adjustments on sales, customer satisfaction, and overall profitability. This allows them to refine their pricing strategies and measure the return on investment (ROI) of their dynamic pricing initiatives.
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