Volume 4, Issue 7, July – 2019 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Retail Intelligent Automation: An Overview

Kalyani Kapate Dr.Y.T.Pawar
Research Scholar Principal, MSG College, Malegaon Camp
MGV’s IMR, Nasik(India) Dist. Nasik (India)

Abstract:- Retail industry is one of the most dynamic, meet the changing customers’ expectations which enable
evolving and vibrant industry. Retailers today are them to provide differentiated customer experience
focusing on low cost, great convenience, enhanced Retailers today have realized the gaining importance of
customer experience. Changing demographic profile, online stores and hence are focusing more on offering a
changing tastes, preferences of consumers, changes in “unique and differentiated in-store experience.
consumer shopping behavior are some of the key factors
due to which the retail shopping experience is Retailers need to rethink and strategize their business
constantly evolving. One of the biggest challenges for processes to ensure they remain competitive in today’s
retail industry is adapting to the world of online and technologically competitive market place.
technological advances in the field of marketing and
sales. Today retailers are facing tough competition from II. LITERATUER REVIEW
e-commerce giants like Amazon. Despite of such
competition, in-store retailing will survive, however it A. Customer Experience:
needs to change and differentiate from that of their Customer Experience is the outcome of customer and
competitors with the integration of retail business company interactions over the duration of their relationship.
processes, artificial intelligence and automation to meet Customer experience means all that the individuals
the changing customers’ expectations which enable experience during all points of contact matches the customer
them to provide differentiated customer experience. expectations. (Thompson, Ed and Kolsky, Estaban 2004-12-
With the help of artificial intelligence and automation 27) Gartner asserts the importance of managing the
differentiated consumer shopping experiences can be customer’s experience.
given which will match up with the changing
expectations of modern customer and also help the Customer experience can also be said as customer’s
retailers to increase their sales and loyal customers. perception of their experience with the company. A
With a proper blend of business and IT alignment company delivering Quality customer experience will have
retailers can achieve a pervasive automation at all levels more number of loyal customers.
and business processes which will enable them to stay
strong in the competition by providing enhanced The overall experience reflects how the customer feels
customer service. about the product, services provided and also about
company. Understanding the customer experience is the
Keywords:- Customer Experience, Artificial Intelligence, integral part of customer relationship management. Creating
Automation. differentiated customer experiences has become one of the
most competitive force in the retail industry.
I. INTRODUCTION
B. Retail Automation and Artificial Intelligence:
Retail is one of the largest industries in the world and With the e-commerce revolution many changes in
technology is transforming the retail industry in a way to consumer shopping behavior got initiated and such changes
enhance business competency of the retailers. There has are evolving also due to usage of modern technology in the
been a big change in the shopping behavior of today’s field of retail. Use of Mobile apps, social media as a
customer who does not view shopping as an “activity” but medium of marketing communication by businesses is also
more as a complete experience inclusive of joy, supporting such changes leading to changes in customer
entertainment and pleasure from purchases . Retailers today demand patterns. Under such situation competition is
are focusing on low cost, great convenience, enhanced getting more and more intense compelling retailers to
customer experience. Changing demographic profile, match with the changing market trends set by changing
changing tastes, preferences of consumers, changes in consumer preferences, shopping behavior.
consumer shopping behavior are some of the key factors
due to which the retail shopping experience is constantly Retail Automation is the use of technology to
evolving. One of the biggest challenges for retail industry is automate retail locations. It’s a process whereby the
adapting to the world of online and technological advances retailers are equipped with operational tools infused with
in the field of marketing and sales. Today retailers are latest technologies used to make their business processes
facing tough competition from e-commerce giants like and systems more responsive, personalized, and convenient
Amazon. Despite of such competition, in-store retailing from customer’s point of view to create delightful and
will survive, however it needs to change and differentiate differentiated customer experiences.
from that of their competitors with the integration of retail
business processes, artificial intelligence and automation to

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Volume 4, Issue 7, July – 2019 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Artificial Intelligence (AI) can be defined as a
capability in machines to reason, remember information, Intelligent automation does not only mean
learn and identify new insights through data discovery. technological transformation of retail business processes &
Intelligent automation is guided by AI tools that need Systems but it also has potential to increase the business
minimal manual routine interventions. This operational competency whereby retailers can become leader in
shift augments and assists human capabilities, reduces today’s highly competitive and dynamic retail marketplace.
human errors and builds efficiencies, while enabling digital
operations and innovations. Four components make up III. NEED OF RETAIL INTELLIGENT
intelligent automation: the first three are fueled by AI, the AUTOMATION
fourth by automation. 1. Engagement over external touch
points where users interact with systems 2.Learning from With the use of latest and next-gen technology
analytics across different data sources and recognizing retailers today can create a platform for customers to enjoy
semantic references to use as criteria for decisions a completely new experience of shopping both online and
3.Reasoning from learning to make autonomous decisions in-store.
and self-remediate over time 4.Doing or executing to carry  Implementing AI enabled automation help in
out the next best action that systems can execute digitally transforming retail industry by becoming
and/or that people or robots can execute physically. technologically more competitive, increasing sales and
gaining customer loyalty. Intelligent retail automation
Many of the industries have automated their business will have a crucial impact on their survival and success.
processes and have changed beyond recognition. In retail  Intelligent retail automation helps in revolutionizing the
industry retailers doesn’t have to work on and automate way retailers interact with their customers, the way they
each and every business process or function, but they need are integrating advanced digital technologies for
to work on the areas of improvising customer experience creating retail experiences.
and automate their execution.  Retail automation will yield significant returns for both
employers and employees. Automation helps in
Automation by improving the quality of various retail improving scalability, minimizing errors and increasing
systems help the retailers to improve their touch points efficiency.
whereby they can provide better customer service and  With the help of artificial intelligence and automation
create more satisfied and loyal customers. differentiated consumer shopping experiences can be
given which will match up with the changing
While making use of automation, retailers need to expectations of modern customer.
know about their brand’s perspective, brand expectations  With a proper blend of business and IT alignment
from their customers and with such understanding they retailers can achieve a pervasive automation at all levels
should try to communicate and connect with their target and business processes which will enable them to stay
customers. Automation facilitates monitoring of such strong in the competition by providing enhanced
changes and guides the retail brands to select and customer service.
implement best course of action in order to enhance sales.  With the use of various tools and techniques of
and generate recommendations, and to make autonomous automation retailers can strongly complete with the e-
decisions and self-remediate over time. commerce giants like Amazon.
 Retailer’s key areas of concern for survival and growth
Intelligent automation was initially used for some of like reduced cost, benefits of business optimization,
the processes and systems to work on increasing rising demand for automated retail products,
efficiency and reducing cost by retailers. But with the improvement in customer service quality and customer
advent of technology, the scope of automation got widened
convenience, increasing competition from e-commerce
which has introduced new ways of automation which can giants have created need for intelligent automation in
increase operational agility, improve the quality and speed retail.
of decision making process, improve the customer service
quality and enhance the overall customer experience. With
IV. AUTOMATION IN RETAIL: WAYS AND
these advancement in automation certain issues also got
TOOLS
introduced like ethical issues in conducting processes,
issues of machine responsibility, etc. Retail in 21st century is under tremendous pressure.
Higher costs to on supply chain, higher investments in
When thought of processes, in retail world a product operational areas, rising customer expectations, competitive
passes through various stages- planning, sourcing,
pressure from online giants are some of the key areas of
producing, marketing, distributing, and selling. During this
concern for retailers. Many of the industries have
journey of product lot of data has been generated at each automated their business processes and have changed
stage. The artificial intelligence (AI) driven automation in beyond recognition. With the use of latest and next-gen
retail can find many answers to enhance the efficiencies at technology retailers today can create a platform for
operational levels, service levels and quality of customer customers to enjoy a completely new experience of
experience with the smart use of valuable data generated at shopping both online and in-store. Implementing AI
various stages.

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Volume 4, Issue 7, July – 2019 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
enabled automation help in transforming retail industry by D. Other Tools:
becoming technologically more competitive, increasing An automation can also be implemented by
sales and gaining customer loyalty. Responsive POS, UGC Automation, Chatbots, Internet of
things Automated Inventory Management and many other
Inman and Nikolova (2017) draw attention to how automated processes.
technologies can benefit both consumers and businesses,  Responsive Point-of-sale (POS) System: Speed,
which ultimately enhance the businesses’ profitability. convenience, transparency are some of the key factors
They highlight mobile apps, scan-and-go technologies, self- which are putting pressure on retailers to upgrade and
check-outs, QueVision, and smart shelf technology. automate their POS System. With such upgraded POs
system retailers can better manage their inventory as
A comprehensive Retail Automation would include: well as their customers profile. Mobile POS Apps is one
such example .
A. Supply Chain Process Automation:  UGC Automation: User Generated Content (UGC) is
Supply chain is concerned with managing various one of the highly successful marketing tool adopted by
elements like people, technology, resources, raw materials companies which brings actionable insights in order to
to finished goods, various processes like distribution, win customer attention. It helps retailers in engaging
delivery in order to ensure optimum utilization and customers on consistent basis. UGC encompasses
outcome from such resources and processes. Automation in various latest business solutions ratings and reviews,
supply chain function will help in achieving the optimum questions and answers, etc.
efficiency and effectiveness from such various elements  Reviews & Ratings: This platform helps retailers to
involved in supply chain process. identify the satisfied and dissatisfied customers through
their positive or negative reviews, feedbacks. Further
Automation will help the companies to direct the flow of helping the retailers to work on negative feedbacks
various activities to automatically update and adjust the generated from dissatisfied customers in order to
plans, avoiding the problems of under stock or overstock enhance customer satisfaction.
situations, ensuring smooth flow of products which will  Qustions and Answers: This platform is also a very
further help them in enhancing the inventory productivity. powerful tool under UGC system which helps retailers
to identify potential and prospective buyers for their
B. Customer Service Automation: product categories.
Customer Service Automation includes the customer  Chatbot: Chatbot is a complete program which conducts
support system of the retailer which is provided and a conversation via auditory or textual methods. It is
supported by an automated system, like customer care typically used in dialogue system for various practical
center, self-service mechanism and Artificial Intelligence purposes including customer service or information
Systems. An automated customer support system facilitates acquisition. Today most chatbots are accessed via
smooth flow of customer service activities performed by virtual assistants such as Google assistant, Amazon
the retailer and reduced cost of human Alexa via messaging apps such as Facebook Messanger
support.(Ref.www.Zendesk.com) or Wechat, individual organisation’s websites. One
good Example of retail brand innovating with
C. Customer Experience and Customer Engagement chatbot:Pizza Hut- It has tapped into their customer
Automation: base by using chatbots to make the customer purchase
Retailers are taking lot of efforts in improving their easier.
customer service thereby trying to give delightful  Internet of Things (IOT): The eRetail industry
experiences to customers. They also conduct various welcomes Internet of Things. IOT is a system of
customer engagement programs like contests for customers, computing devices , digital machines, objects, or people
campaigns. With intelligent automation these programs can which are interrelated that are provided with Unique
be better implemented. Retailers make use of social media, Identification Numbers which enables transfer of data
various mobile apps, visual digital displays, real time through network without need of man-to man or man to
messaging. machine interaction.
Roggeveen and Grewal (2016) suggest that five effects V. RETAIL AUTOMATION IN PRACTICE:
drive consumers to engage with social media: connected,
network, information, dynamic, and timeliness effects.  Nike automates process for customer-designed
Automation in Customer Experience and engagement sneakers:
programs will help the retailers to conduct more Nike Inc., an athletic footwear, apparel and equipment
meaningful, effective and cost effective programs so as to company, has developed a system which makes use of
achieve the objectives of improved customer experience augmented reality, object tacking and projection systems.
and better customer involvement. Through this system their customers as per their choice,
requirement can design their own shoes and leave the store
wearing them. With this system they can make these
customized shoes (by cutomers) available to the customers
in under two hours.

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Volume 4, Issue 7, July – 2019 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
 Avenue Stores LLC, a retail apparel chain, integrates VI. BENEFITS OF INTELLIGENT RETAIL
data across multiple touch points: AUTOMATION:
Avenue Stores LLC, a retail apparel chain, collects
data through their system at various touch points and make A. Enhanced Business competency:
use of such data for customization of their offerings. With Intelligent automation was initially used for some of
the data collected they can better learn about their the processes and systems to work on increasing
customer’s likes, dislikes, market trends and fashions which efficiency and reducing cost by retailers. With various
enable them to offer best suited products to their customers’ intelligent automation tools retailers are now enabling
requirement. They also run the system of real time themselves in enhancing their business competency.
messaging.
B. Reduced cost:
 Scan Go technology :Amazon Go Cost will be needed for implementing automation in
Amazon Go uses the “scan-go- technology” to business processes and systems but once implemented it
facilitate ease in shopping and faster purchases to their will benefit the retailer in reducing the operational costs.
customers. For this customer requires a smart phone and
the Amazon Go App. Amazon Go allows customers to scan C. Improved customer experience:
their smart-phone as they enter the store, pick up the Retail automation can help in increasing footfalls.
products they want, and leave. Computer vision, sensor Parking without needing a ticket, having new gadget to
fusion, and deep learning technologies automatically detect interact with, or check-out free stores like Amazon go
when products are taken from or returned to shelves and makes customer happier by providing them with a unique
keep track of items in a virtual cart. After consumers leave experience.
the store, they are charged and sent an automatic receipt.
(Amazon 2016). D. More Consistency:
As most of the retail business processes will be
 Self-Check-Out Technology: automated it will yield more consistency in terms of
self-check-out technology helps shoppers scan, bag, increasing sales, providing better customer service and
and pay for products without any need to interact with a giving delightful customer experience. Customers believe
cashier. in brands with consistent performance. Retail automation
helps in performing consistently to ensure maximum
 QueVision Technology : customer satisfaction.
QueVision gives retailers insights into how many
registers are needed and the expected wait times, using data E. Helps in strategizing the store operations:
garnered from infrared sensors over store doors and cash Automation in various Store operations and in-store
registers, predictive analytics, and real-time data feeds from operations, systems helps retailers to perform more
point-of-sale systems. Using this technology, grocery efficiently and cost effectively. As lot of data has been
retailers have been able to reduced wait times from more generated at various stages, under automation such data is
than 4 minutes to less than 30 seconds. utilized to understand the customer product requirements
and expectations, it also helps in assortment selection for a
 Introduction of smartphones, changes in mobile particular store. AI technology further helps retailers in
technology have revolutionized shopping. It has opened customizing their offerings suiting to their customers needs.
many ways to retailers’ to reach effectively, connect
with their target customers. Mobiles have become one F. Helps in improved efficiency and gaining agility:
of the strong marketing communication tool for Every retailer today use automation in some or the
retailers. other form. At the planning stages intelligent automation to
 Integrating channels and the power of big data are not help their organizations do a better job of what they do now
distinctive factors anymore but rather are prerequisites – to improve operational efficiency, extend and expand
of competitiveness. Where the field goes will depend on capabilities, increase revenue growth. At the operational
even newer emerging forces: The Internet of things, level retailers have to raise efficiencies at service levels,
virtual or augmented reality, artificial intelligence, and improvise service quality and quality of customer
robots/drones/driverless vehicles (Deloitte2016). experience. Businesses using intelligent automation
 Virtual and augmented reality has offered vast promise experiencing the benefits they are getting by the change in
for a long time; those promises are just beginning to be the ways they do business – increase in operational agility,
realized. The new forms of technology-based reality and improvement in quality and speed of decision making,
applications enhance sensory perceptions (Poncin and enhanced customer experience.
Mimoun 2014). For example, fashion retailers use new
technology to help customers engage in virtual fashion G. Better Customer Service:
shows (Deloitte 2016). a car, or games such as Automation processes helps businesses with accurate
Pokémon GO that combine a hunt for virtual creatures data creation and helps provide context around customers
(Pokémon) with the real-world locations of the players. shopping behavior and expectations. By getting access to
A mobile device’s GPS capability makes this possible. such accurate data and using it across personalization,
retailers are enable to deliver more customized and

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Volume 4, Issue 7, July – 2019 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
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