If you’re in retail, you’ve probably heard it before: Personalization matters. Tailoring the shopping experience to meet customers’ expectations and deliver what they need before they know they need it is key to success in a competitive retail environment. Because of this desire to meet — and exceed — customer expectations, there’s also a move in retail to bring the online experience into the physical store.
That’s where digital signage comes in. Digital signage can provide customers with product and reviews, interactive experiences, tailored offers, and more. As the collection and analysis of customer data advances, artificial intelligence (AI) is starting to play a larger role in digital signage, too — a trend powered by Intel technology.
AI Meets Digital Signage at the Store
You’ve probably seen digital signage in a variety of places: hospitals, airports, and malls for starters. These signs have been used for years to convey information such as directions or promotions in places where people will see them. In some cases, these signs have allowed people to search for information or get answers to questions.
In retail, digital signage has taken a leap forward with the help of new technologies and anonymous data analytics. Footwear maker Adidas, for example, created a Virtual Footwear Wall for some of the brand’s retail stores using a touchscreen digital display and Intel-powered technology. The wall allowed customers to select shoe models, view them from all angles, and see product information. Using anonymous, built-in video analytics, the company gathered data so it could provide customers with personalized experiences.
Like Adidas, many retailers collect demographic data such as age and gender and use it to create relevant content for customers on digital signage. It’s common for retailers to use intelligent scheduling software that can present content based on trends in customer data. In some cases, customers will even see content chosen for them while they’re shopping in real time.
The concept of AI being used for tasks like self-checkout and answering customer questions isn’t new. But as we can see, AI is also starting analyze more data in less time, produce deeper insights, and continuously learn how to adapt to customer audiences so retailers can use signage to create more personalized shopping experiences.
Artificial Intelligence in Programmatic Advertising
AI also plays an important role in advertising. We’ve already seen this technology roll out online for programmatic display ads. AI helps with online ad campaign management by employing machine learning algorithms that can deliver relevant content and make real-time bidding more efficient. AI generally serves to make advertisements online more personalized, presenting high-quality ads to the right consumers at the right times.
AI has begun to play a similar role in advertising on digital signage, using data about sign viewers to display targeted ads and offers. Retailers can now participate in programmatic advertising, placing ads on digital screens out in the world, similar to the way they would online.
Within their own stores, retailers also use demographic data to decide what ads or promotions to present to customers at certain locations. Other times, retailers even use video analytics to decide which ad to show to a person standing in front of a sign in real time.
Why does this matter? Companies can start using digital signage to target motivated customers already in stores. Take this example from Rite Aid: The company used a digital signage display to present coupons to customers based on demographic data. This meant they could show an ad for reading glasses, for example, to older shoppers entering the store rather than to teenagers, making it more likely the ad would lead to a purchase.
As these applications demonstrate, many opportunities exist for retailers to use AI to deliver timely, appropriate advertisements, and it’s pretty certain we’ll be seeing more of this in the future.
Build Better Digital Experiences With Intel
Retailers want engaged customers, and shoppers want retailers to engage them. Digital signage with AI technology provides a platform for retailers to take shopping experiences to a new level, wowing customers with unique interactions and exceptional service. If retailers continue to take advantage of data and AI, their digital signage could play a key role in driving sales. To get started, learn more about Intel’s digital signage platforms. Then head over to our retail solutions portal to see all the ways Intel is working with retailers to transform the industry.