The advent of artificial intelligence (AI) in retail is significantly influencing consumer purchasing behaviour.
- Eagle Eye, a firm specialising in supermarket loyalty schemes, is using AI to enhance customer engagement and boost sales.
- The strategic application of AI tailors promotions based on consumer habits, pushing smaller purchases into larger spendings.
- AI hyper-personalisation poised to revolutionise retail sector, influencing profitability and consumer experience.
- Eagle Eye has reported a six-fold increase in profits, underscoring the economic impact of AI in retail.
The integration of AI technology in supermarkets, spearheaded by companies like Eagle Eye, is transforming how consumers shop. Eagle Eye’s adoption of AI within its loyalty scheme offerings allows for the creation of personalised shopping experiences, encouraging customers to make additional purchases by targeting their buying tendencies. Using advanced algorithms, AI predicts products that consumers are likely to buy and strategically offers promotions to incentivise more significant purchases.
Eagle Eye’s acquisition of the French AI startup Untie Nots, now rebranded as Eagle AI, exemplifies the company’s commitment to leveraging AI for increased consumer spending. By analysing shopping data from loyalty programme members, the system can identify potential purchasing patterns, allowing retailers to send targeted offers to encourage shoppers. This strategy aims to stretch a customer’s typical purchase behaviour, rewarding those who engage more deeply with the scheme with better deals.
Tim Mason, CEO of Eagle Eye, believes AI-driven personalisation will become fundamental to the retail sector, ultimately creating a divide between more profitable companies utilising AI and those not yet adopting such technology. Mason envisions a future where the shopping experience is heavily personalised, accounting for individual consumer preferences, dietary needs, and even personal health information. Such a bespoke approach could lead to a personalised shopping newsfeed akin to social media experiences.
Financial performance has affirmed the impact of these strategies, with Eagle Eye reporting a considerable profit increase to £5.4 million for the year ending June 2024. This financial success is linked to an 11% surge in revenues, highlighting AI’s pivotal role in driving business growth. While the company focuses on continued expansion rather than distributing dividends, its shares have seen a slight decline, though the overall economic trajectory remains promising.
AI personalisation is reshaping retail, elevating customer experiences while enhancing profitability for innovative companies.
