Credit: Getty Images by MoMo Productions
Competing in the tech-saturated business landscape is easier than you might think
Industries are rapidly adopting artificial intelligence. Today, 83 percent of companies are prioritizing AI in their business plans, and large platforms are announcing new AI use cases daily. Amid so much momentum, small and medium-sized (SMB) brick-and-mortar (B&M) businesses might feel like they’re getting left behind.
With so much focus on data and e-commerce, it’s easy to overlook opportunities that new technologies can bring to those operating IRL. AI can help B&M leaders overcome business challenges, deliver better customer experiences, and stay true to their brands — while boosting bottom lines.
The Challenges
B&M retailers are often more complex than e-commerce businesses. While e-commerce businesses can operate efficiently with lean teams, B&Ms require more employees and operational layers to function. This can make it more difficult to capture and consolidate data, which is critical for effectively using many new technologies, including AI.
B&M businesses that have tried to consolidate data often end up with a patchwork of point solutions that capture data for inventory, sales, and employee performance. Even where some centralization exists, it can be difficult for all staff to access the data they need quickly, preventing the true democratization of product knowledge, sales insights, and more.
The Opportunities
While most savvy retailers have already started to leverage point-of-sale and inventory management systems and data, the most innovative B&Ms envision new possibilities for better customer experiences.
Customer experience is a top differentiator between visiting local stores and shopping online. Bringing more tools and insights to front-of-house operations can unlock step-change growth for B&M businesses.
Below are some near-term ways B&M businesses can leverage AI and other technologies to grow their bottom lines:
Gen AI That Knows Your Business
Imagine using a chatbot like ChatGPT but designed specifically for your store, capable of answering questions like, “How many of this chair do we have in stock?” By applying AI to existing datasets — such as inventory, sales, or employee performance — retailers can use AI models for the unique demands of their retail stores in real time. As smaller businesses integrate disparate data systems, they can build AI solutions that empower employees with better information to enhance customer experience.
Training and Upskilling
AI can increasingly be applied to human-to-human sales interactions on the retail floor. By listening to sales conversations, AI can provide nearly instant feedback, highlighting missed opportunities or suggesting improvements. Over time, as these interactions are correlated with sales, retailers can identify patterns that lead to success and use this data to coach sales teams more effectively.
B&M stores often lack visibility into what causes missed opportunities. Instead of paying for coaches or classes to upskill salespeople, SMBs can leverage AI to bridge the gap more effectively, guiding better sales approaches and delivering long-term return on investment.
Put Admin on Autopilot
Where does tedium exist in your operation? Identifying repeatable tasks that don’t require human oversight presents opportunities for new technology to step in and automate.
Workflow automations can streamline approvals in marketing, accelerate accounts payable and receivable processes, generate schedules, improve inventory management, facilitate employee training, and more.
Sentiment Analysis
B&M leaders can use AI to analyze the tone and context of customer comments on platforms such as Google, Yelp, and Reddit. This unstructured data is compiled into easy-to-read reports that identify customer service issues, opportunities to outperform competitors, and the best paths to leveling up customer experiences.
Winning the Future
By identifying key opportunities, seeking the right tools, and thoughtfully integrating them into existing operations, B&Ms can embrace the future of business and improve operations while preserving the identities that make them unique.
Kal Amin is managing partner of 1848 Ventures, a B2B SaaS venture studio backed by Westfield and focused on empowering SMBs through AI.
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