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Grocery Retailers Looking At Artificial Intelligence Apps

An mcommerce marketing strategy to track consumer shopping behavior


Grocery Retailers Looking At Artificial Intelligence Apps

E+M is a brand response company – a hybrid of designing and executing Advertising and Direct response.


Here's What One Retail Supermarket Would Like to Do

We see how Kraft is using this to understand your consumption behavior and potentially nudging the consumer to modify their behavior. Can a supermarket use mobile technology along with artificial intelligence apps to execute an mcommerce strategy to understand more about you and tailor messages and promotions? Walmart is already doing this with theirMy Holiday App along with their My Local Walmart Facebook App. Here is an example of a program that will be rolled out by a major grocery retailer.

You are passing by your store and the retailer sends you a message to your cell phone asking if you want to opt into their mobile marketing program.

If you find the message intriguing, you opt in which then send you a series of questions to see what you are interested in. So it might ask you a question with a list of brand for you to choose. It then would see if you are attracted to certain brands that are deemed healthier. If you select these healthier brands it could give you options of organic and natural brands. All of this is stored on your phone AND back at the retailer's database.

Once there is the initial brand selection, the supermarket sends you coupons based on your selections. The powerful positive reinforcement is this - once you start using the coupons the store will double the coupon offers!

All of your brand selections, purchases, coupons AND your total activity is stored… this is how they will track your behavior in shopping the store.

Now this is the really intriguing part of AI apps. As you shop the store there are these gadgets on the shelf, called proximity triggers that use blue tooth technology to connect with you as you walk around. So for example, let's say you are in the cereal aisle AND the AI app knows you are a healthier-for- you shopper. It might send you an offer for one of the natural and organic granolas.

Because the system is connected to you real-time, it can tell how long you are in the cereal aisle. Your longevity in the aisle along with other data they have learned about you might lead them to the conclusion you are a heavy user of better-for- you foods and if you purchased or decided not to purchase. They are connected to you and if you they can send you incentives to get you from undecided to decided that breaks new ground in consumer packaged goods. Now you just can't do this with conventional marketing tools.

Implications to the Food & Beverage - Mobile Brand Engagement

All brands strive to learn what will trigger the consumer… the stimulus that motivates them to purchase. This "mobile engagement" allows the brand to interact with the individual consumer in the environment when they are ready to buy. Friendly reminders sent to your smartphone… that is way more than just a "cool" app. The brand learns about the consumer at a granular level, which means a very detailed level of the consumers wants and needs. It is knowing the wants and needs, not by asking, but buy learning the individuals shopping and usage behavior.

Food & Beverages are only successful when the consumer makes repeat purchases. The repeat purchase can lead to "food fatigue". People get bored with frequently purchased food products and often switch brands to try something new and different. AI apps can figure out other ways the consumer can use the brand… ways that the consumer probably won't come up with on their own and avoid food fatigue.

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