Artificial intelligence at the point of sale: Three use cases for personalization to delight your customers (Part 2)

Retailers juggle vast amounts of data on a daily basis – be it in inventory management, price management or with regard to good customer service. Artificial intelligence (AI) helps retailers in both physical and online stores to make sense of and use this multitude of data. In Part 2 of our blog series “Artificial Intelligence at the point of sale,” you will learn how personalization can help you win customers with individual offers and increase sales at the same time.

1. Advisor tablet to make personalized recommendations

What makes for good customer advice? Sales staff learn about customers’ needs during a conversation, and then recommend suitable products and services. How practical would it be to know more about the customer’s product preferences right at the beginning of each interaction, and to have recommendations ready that match their product search?

An advisor tablet makes this possible. It supports sales staff during a customer consultation by displaying relevant product recommendations that are individually tailored to the customer’s interests. The customer card or e-mail address, for example, are used for identification. This makes all available customer information – across all channels – available to staff. This includes recent purchases, wish lists in the app, or click behavior in digital channels.

Based on this data, AI calculates suitable product recommendations. This enables sales staff to make suggestions and incorporate the customer’s reaction (for example, whether or not they make a purchase) back into the system.

Through recommendation-based customer advice, sales staff achieve a better quality of service, strengthen customer loyalty and generate additional purchases, which in turn has a positive impact on sales volume.

Personalisierung am POS, Berater-Tablet, prudsys, GK Software

2. Personalized coupons for loyal customers on receipts or in newsletters

Many customers like coupons. Whether it’s paper or presented digitally on a smartphone device, coupons are still a popular means of customer loyalty. To actively push the redemption rate, you can individually suggest relevant products to your customers. If the coupons match their needs, the probability of use increases many times over. If the products on the coupons are not a fit, this has a negative effect – e.g., offering a vegetarian coupon for sausages would be counterproductive.

This is where AI provides valuable support: self-learning algorithms automatically calculate product recommendations of the highest personal relevance and combine these with fixed discounts or discounts staggered according to customer value. At the POS, the customer receives the coupon for a product category via their receipt. In addition, the combination of discounts and product recommendations through newsletters also prove to be effective.

From projects already carried out, I can report that retailers were able to noticeably increase the redemption rate of coupons when they coupled them with the individual favorite products of their customers.


Personalisierte Coupons, Personalisierung am POS, prudsys, GK Software


3. In-store TV with suitable product recommendations

Artificial intelligence at the point of sale can also provide content for an in-store TV. Retailers use in-store TV or digital signage to push specific products. However, in-store advertising also means manual maintenance for the retailer since the content must be timely. Using AI, retailers can fully automate their digital signage spaces with real-time, relevant content. Depending on the goal of the retailer, different scenarios are implemented, such as sales consolidation for products relevant to demand, or the pushing of products with high contribution margins.

The content of digital advertising boards can be adapted to time of day, location, regional events or current customer behavior. For example, if there is little demand in a department, the billboard will display a special offer during a specific time slot. If the weather is warm, AI recognizes this and plays out suitable recommendations, such as barbecue equipment or ice cream. In this way, the impact of in-store TV and digital signage is significantly increased, and more interesting offers can be played out to customers.

Personalisierung Instore TV, Personalisierung am POS, prudsys, GK Software

Are you considering using personalization for your business? Please feel free to arrange a meeting with me.

Mr Personalization