Retailers today are constantly finding new ways to inspire customers and stand out from the competition. For example, many retailers are currently using live shopping formats to present their products online to interested viewers. In this article, you will learn more about live shopping and how personalization helps to promote this sales format to the right shoppers.
Video and live shopping - how does it work?
During a live shopping presentation, the host will showcase various products, highlighting the features and benefits for consumers in an entertaining way. Viewers then have the opportunity to purchase the presented products during the live video. Unlike TV shopping, which takes places on TV channels like 1-2-3.tv or HSE, livestream shopping takes place via the company's own online store, social networks or marketplaces.
Why rely on livestream shopping?
The effort, preparation and implementation of livestream shopping events should not be underestimated, but the growing audience numbers and measurable successes make this comparatively young format increasingly attractive for retailers.
Livestream shopping brings the following benefits to retailers and consumers:
- Closer customer contact during online shopping journeys
- More opportunities for brands to present themselves in a personal and authentic way
- Access to a sales consultation and decision-making aids for people who, for a variety of reasons, cannot shop in a local store
- Direct connections to social media platforms that allow viewers to engage directly with retailers during live shopping and ask questions about the product
- A more unique online shopping experience complete with product experiences and entertainment
Livestream shopping in practice
Livestream shopping has been part of the online shopping experience in China for some time. The consulting firm McKinsey1 estimates that sales resulting from this format in the Middle Kingdom will reach $423 billion in 2022. According to Statista2, by 2025, 46.5 percent of all online shoppers in China will take a closer look at a product via a livestream shopping event and then buy it directly afterwards. The coronavirus pandemic also led livestream shopping events to pick up steam. In this country, more and more retailers are starting to use this marketing channel for their business, such as the health & beauty chain Douglas. In 2021, more than 1.2 million viewers watched the perfumery chain's live shopping shows. OTTO, Lidl, Tchibo and MyToys have also integrated livestream shopping events into their e-commerce businesses.
How can personalization improve the live shopping format?
A personalized customer journey has been proven to lead to higher revenues and stronger customer loyalty. Retailers use personalization in various ways within different distribution channels to make the shopping experience personalized and relevant -- in the store and online. Personalization can also be used effectively in live shopping to provide viewers with relevant content:
- Play out videos and live shows in a personalized way
Personalization software calculates the appropriate content for each store visitor based on their click and purchase behavior. This way, the potential viewer receives suggestions for relevant video content or the appropriate upcoming live event. For example, if a customer’s current and past behavior indicates that they prefer clothing from a particular brand, the appropriate live shopping event or video content will be suggested to them. This greatly increases the customer’s time spent in the store and the likelihood of a purchase.
- Product recommendations within the livestream events
In the livestream, the focus is on the presenter with the product. But the streaming event is also ideal for placing product recommendations at the appropriate touchpoint. Here, a personalization solution can create completely different types of recommendations depending on the retailer’s products, the livestream’s theme and the customer’s interests.
This could be a recommendation for a piece of jewelry with a similar look, or an item of clothing that complements the outfit presented. This added recommendation creates a unique incentive to buy. In addition, product bundles or product packages can incentive increased basket sizes during livestreams. For example, a featured perfume may be combined with a matching body lotion as a special offer.
Individual purchase recommendations within the livestream event, which are based on click and behavior data of the shopper and match the presented product category, also inspire viewers. For example, dresses that the shopper previously viewed might be highlighted to intrigue a viewer.
Another deployment option is an automated campaign newsletter sent to attendees following the livestream event. In this scenario, each viewer receives a newsletter containing individual product recommendations, based on click behavior during and before the livestream event.
- Live shopping in the store based on current demand
The boundaries between the online and offline worlds are becoming increasingly blurred. For example, retailers can also stage the live shopping experience as an in-store event that is simultaneously shown as a livestream in the online store or on social networks. This way, both distribution channels benefit. In the store, this product presentation attracts the attention of customers, and the online store customers can watch the live event from the comfort of their own home. Incidentally, the products presented can be selected based on product categories that are currently in high demand in the store. If, for example, there is increased demand for barbecue products in the summer months, the presentation of these products in the store can be extra worthwhile.
Would you like to learn more about how to personalize unique shopping experiences like live shopping events? Get in touch with us!
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1) How live commerce is transforming the shopping experience, McKinsey 2021
2) Prognose zum Anteil der Käufer über Livestream-Shopping-Formate in China bis 2025, statista 2021
The NRF Big Show is known for its grand exhibition hall, exciting presentations and stellar networking. But for GK, the best part of the Big Show is that it brings the retail industry together under one roof.
We're proud to work with customers and partners all around the globe, and we appreciate any opportunity to discuss our solutions live and in-person. At NRF in particular, given its size, we have an opportunity to join forces with many of our partners to showcase how our joint technologies can benefit retail businesses.
This year, GK is proud to showcase several of our innovative partnerships including Opterus, TruRating, MySize , Abacus Lottery, ReAct, Shekel and Hitachi. If you are planning to attend NRF this year, make sure to stop by booth #4257 to see these integrations in action.
Here's a preview of some of the technology partners that you'll see at the GK booth:
Shekel and Hitachi
At NRF, GK is proudly presenting its scanless store, GK GO. With the help of Hitachi's Smart Spaces solutions 3D Lidar Sensors and Shekel's LTD Product Aware Technology, GK is revolutionizing the scanless store. The Lidar sensors and shelf scanning technology allow for an exceptional cashierless experience, without using imaging technology. GK GO gives shoppers easy access to basket information, like prices, coupons and product details at any point within their shopping journey.
Opterus
Opterus is a leading global provider of store information and execution management solutions that increase productivity and improve retail enterprise communications. Opterus's on-demand, web-based retail portal communicates corporate policies and day-to-day objectives across teams and store locations. What's more, store information compiled in the OPSEngine solution can be applied to customer touchpoints like point-of-sale systems, powered by GK OmniPOS, to improve the checkout experience.
MySize
Innovator MySize works with GK to offer unique sensor-based measurement technology for retailers. In 2021, GK announced that the MySize measurement information would be available across CLOUD4RETAIL touchpoints, giving shoppers access to personalized size recommendations and enhanced in-store customer service.
ReAct
Last January, GK announced the seamless integration of ReAct's IoT-based communication software into GK's CLOUD4RETAIL OmniPOS solution. As a result of this partnership, retail employees can easily communicate with one another easily and efficiently. For example, the integration can be used to alert store employees when a checkout queue needs to be opened to manage long lines. Then, ReAct's technology can notify customers of the new lane with lights or an announcement.
See These Partners and More at Booth #4257
To see how these solutions work together to create new and exciting opportunities for retailers in any sector, visit us at booth #4257. If you're interested in a personal demonstration, schedule a meeting today.
We hope to see you there!
- GK ranks top in new retail POS software installations worldwide for the fourth year in a row.
- GK is also once again among the top vendors worldwide for self-scanning installations.
According to the recently published Global POS Software 2022 study by British research firm RBR, GK once again defended its number one position for the fourth year in a row in new POS software installations for all industries excluding Hospitality and Convenience/Fuel in the period studied, June 2021 to June 2022. For this study, the analysts evaluated the installation numbers of more than 100 POS software providers in 48 countries. Only retailers and projects with more than 1,000 POS systems are included in the survey.
Globally and in terms of all POS installations in eight industries surveyed, GK improved by one rank to fifth place, compared to the previous year. 34,500 new installations by GK underline that both new customer business and the expansion of systems with existing customers are progressing ideally, and that projects are being completed quickly. This makes GK Software one of the fastest growing companies in the retail technology sector. Europe remains the company's core market, with ALDI and the Schwarz Group as customers. Still, the strong development in the US, with customers such as Hy-Vee, is supporting GK's position globally.
Enormous growth potential for self-scanning installations
As early as May 2022, the analysts at RBR had issued the report “Mobile Self-Scanning and Checkout-Free 2022” on market development around mobile scanning and payment solutions as well as checkout-free systems, i.e., technological solutions without a classic scanning and payment process. According to the report, scanning with customers' smartphones or retailers' own devices is expected to be possible in more than 160,000 stores worldwide by 2027, which would represent a threefold increase from the current market within the next 5 years. GK ranks third among mobile self-scanning software vendors worldwide in the study, which uses data from 2021. While the overall market for mobile self-scanning and checkout-free installations grew by 26% between 2020 and 2021, the share of these systems powered by software from GK grew by 45.6%. RBR examined the market shares of more than 60 software and hardware vendors across 23 countries.
RBR is a strategic research and consulting firm with three decades of experience in banking and retail automation, cards and payments. RBR supports its clients by providing independent advice and information, with reports, consultancy, newsletters, and events.
Getting a meal at a quick-service restaurant (QSR) is quickly becoming an entirely different experience than it was just a few years ago. The pandemic forced restauranters to pivot away from indoor dining and the labor shortage led to slower than usual service or worse, permanently shuttered doors.
Unfortunately, for most quick-service restaurants, neither of these issues are fully resolved and there's a new goliath in the ring – inflation. According to Lending Tree, 85% of Americans say inflation is impacting how much they eat out. In fact, 67% of consumers reported dining out less frequently due to inflation and 25% reported reviewing prices more closely.
In many cases, restauranters cannot afford to lower their prices amid inflation due to rising supplier costs. But luckily, there are ways that QSRs can keep consumers engaged through technology. The key is to make the dining-in experience as convenient and affordable as possible.
Technology Increases Convenience at QSRs
Ever since the pandemic began, curbside pickup has skyrocketed in popularity. And with inflation on the rise, this trend is predicted to remain strong. Domino's CEO Russel Weiner told investors that inflation will likely impact delivery more than carryout or curbside due to the added expenses incurred during the delivery process, like fees and tips. In fact, the market value of DoorDash has dropped 67% in recent months.
Curbside and carryout options are growing in popularity as consumers look to achieve a convenient experience without paying delivery prices. Restaurants will look to technology to keep these unique customer journeys efficient.
A seamless omnichannel experience and a frictionless payment process is critical to the success of mobile ordering and curbside pickup. That's why GK offers TransAction+, a family of certified solutions that give restaurants the flexibility they need to integrate all payment processes into one secure system. Transaction+ makes it easy to incorporate new checkout experiences that entice consumers back to the restaurant.
Dynamic Pricing Reduces the Impact of Inflation
For QSRs that prepare fresh food daily, reluctancy to dine out can be extra costly. Not only are these restaurants dealing with decreased traffic, they're also up against expensive food waste.
In response, QSRs can implement dynamic pricing and promotions. As the day progresses and the likelihood of selling the products at full price diminishes, these restauranters can rely on artificial intelligence and machine learning to strategically change prices. With AI and ML, the pricing strategy is always optimized, ensuring the consumer will be intrigued by the price, without lowering margins too far for the restaurant.
With GK AIR Dynamic Pricing, QSRs set pricing strategies based on their goals – whether that's increased sell-through rate or maximized profits. The solution can be easily integrated into existing touchpoints to create cost-efficient and error-free pricing workflows.
Enhanced Use of Data Improves the Customer Experience
Oftentimes, QSRs don't use consumer data to the fullest. By collecting data and using the related insights to drive the customer experience, QSRs can increase traffic despite inflation. Customer behavior will continue to change even as the current challenges abate so proper data and insights will remain critical.
GK's CLOUD4RETAIL platform makes it easy for data to flow through a restaurant setting. The features of the solution include full table-service functionality, integrations with kitchen production systems, and enhanced APIs to enable third-party integrations and customization for restaurant-specific requirements.
How GK Can Support Innovative QSRs
The best way to withstand any storm is to be customer-centric and respond to the needs of the target audience. By investing in the tools and technology needed to create the strongest customer experience, QSRs can continue to thrive amid today's challenges.
GK is here to support QSRs through their digital transformation. Whether it's dynamic pricing or increased cloud capabilities, GK has the solutions that foster long-term success. Reach out to us today to learn more.
Black Friday is considered the starting signal for the annual holiday season. One day after Thanksgiving, retailers from various industries offer discounts on their products. This year, Black Friday falls on November 25. In this article, we explore which personalization use cases retailers employ to offer their customers a positive shopping experience and increase sales rates.
In 2021, according to the German Retail Association (HDE), the combined sales volume of Black Friday and Cyber Monday totaled 4.9 billion euros. This corresponds to a sales increase of 27% compared to the previous year. It will be exciting to see how sales will develop in 2022. Due to inflation and high energy prices, retailers are only cautiously optimistic.
In addition to Black Friday, many retailers are also focusing on Cyber Monday on November 28. Every year, retailers strive to wow consumers on these extraordinary discount days. For a successful shopping experience, personalized content and other unique retail strategies are needed.
We present five exciting use cases for personalization that ensure sales growth on Black Friday and strengthen customer loyalty.
Automated Newsletter Campaigns
Newsletters targeted to specific groups will draw your customers' attention to a specific product or product group. Personalization software analyzes your customers' click and purchase data and can determine which of your customers are amenable to the selected products in seconds. For example, customers can receive an automated newsletter promptly after they visit the online store, with recommendations from the previously viewed favorite category. Through this type of newsletter campaign, you reduce waste and increase the response rate. Learn more about this topic here.
Content Personalization
The goal of content personalization is to offer customers content that interests them. Whether it's blog posts, videos, or tutorials, content that matches your customers' preferences and interests add value. The customer feels well-advised because he receives information and tips on a topic that is relevant to them. In turn, the customer will be more loyal to the retailer because of the exception experience. You can find out more about content personalization here.
Dynamic Recommendation Boxes
Let your customers decide for themselves what they see. You can do this with recommendation boxes, in which the customer chooses their favorite category. By clicking the box they prefer, the customer receives personalized recommendations from that category. This way, retailers can promote cross-selling, as the customer sees more of the broad assortment.
Schedule for promotions
Especially during Black Friday and Cyber Monday, it is helpful for customers to see the periods with scheduled product promotions prominently placed in the online store. You can include individually suitable product recommendations for the respective customer in your schedule e.g. from the product category. In addition, you can place personalized product recommendations around predefined promotion products.
Product Bundles
Offer your customers a "product bundle" of two, three or other products. The bundle can contain products that are often clicked or bought together in the online store. For example, a shower gel might be paired with a matching lotion or a Lego toy might be bundled with other items from this Lego series. Bundles have the advantage of saving your customers time when searching for products. A discount for the bundle can also provide an additional incentive to buy more. Read more about bundles here.
Would you like to use personalization for your business? Contact us here, and we will be happy to advise you!
- Preliminary figures project a revenue growth of 18 percent
- EBIT increases by 50 percent
EBITDA reached 22.24 million euros, compared to 17.24 million euros in the previous year (adjusted for the one-off effect of the sale of AWEK microdata). EBIT increased by almost 50 percent and stood at 17.19 million euros in comparison to an adjusted 11.48 million euros in the previous year.
Based on these results, the EBIT-margin (on sales) after nine months in the fiscal year 2022 reached 15.2 percent (9M 2021, adjusted: 12.0 percent).
The increase in revenue and earnings is based on growing Saas-revenue, as well as strong existing customer business and traditional software license revenue with new clients.
Based on the results achieved already as well as the outlook for the remaining months in 2022, the Management Board confirms its forecast for fiscal year 2022 as well as the medium-term outlook until the end of fiscal year 2023.
The nine-month announcement is scheduled to be published on November 28, 2022.
It's no secret that the entire holiday season is busy for retailers. But for grocers, the busy season continues into the "big days" thanks to forgetful chefs.
With 94% of consumers planning to host the same amount, or more people, than they did in 2021, shoppers will be buying more ingredients to prepare the Thanksgiving turkey or Christmas feast.
And what's more,61% of shoppers will forget an ingredientleading up to the big day, causing them to make last-minute grocery runs. Thetop ten most neglected itemsinclude cranberries (forgotten by 32% of shoppers), spices (20%) and pie crust (20%).
If the missing items are realized too late, some consumers will be out of luck. Many grocery chains like Stop & Shop, Walmart, Whole Foods and Trader Joe's are closed on the holidays to give their employees the day off. Unfortunately, this kind gesture oftentimes leaves shoppers without the ingredients they need to complete their holiday meal.
Luckily, there is a new solution – cashierless checkout. With scanless stores like those powered by GK GO, shoppers can get in and out of the store quickly, without requiring excessive staffing.
The Holiday Shopping Experience with GK GO
Let's set the scene. You're making Thanksgiving dinner for your extended family and the holiday snuck up too quickly. Hours before the meal is set to commence, you realize you forgot cranberries. While this may seem trivial next to the successfully roasting turkey, the cranberries are a staple for your loved ones.
Fortunately, a grocery store in your town recently trialed a cashierless checkout experience that's slated to be open on the holiday. You arrive at the store and scan an app. From there, you go in, grab the cranberries and walk right out the front door without waiting in line or interacting with an employee who's (rightfully) unhappy about working on the holiday.
How GK GO Benefits Store Associates
Seamless experiences like the one described above aren't the only benefit retailers gain by offering a scanless setup this season. Scheduling in-store associate hours during the holidays can be a headache. Since the onset of the pandemic, retailers have faced increasing pressures to close on the holidays. While this is a great way to support employees and boost company morale, last-minute holiday sales are lost, particularly for grocers.
By offering a cashierless option like GK GO, grocers can take advantage of these timely sales without asking many associates to come in. Customers can peruse the store independently and check out on their own. With GK GO, consumers have all the information they need to complete the transaction on their phone, including relevant promotions and basket totals.
This level of consumer independence decreases lines and helps forgetful chefs get home to their families quicker, while ensuring more employees can enjoy the holiday, too.
Be There For Yoyour Customers Without Sacrifice
Grocers want to offer the best experience possible for their shoppers and during the holidays this can put undue stress on employees. To learn more about how GK GO can simplify the already complex season,reach out to us today.
Many retailers are turning to content personalization to improve the user experience, strengthen customer loyalty, and optimize success metrics. In this article, you will learn what content personalization is, how it can be integrated into customer communications, and how Douglas and Betti Bossi put this personalization form into practice.
What does content personalization mean in retail?
Content personalization refers to the user-specific adaptation of content at various customer touchpoints on behalf of the retailer. It’s all about creating valuable content that is individually relevant to the user in the app, in the newsletter or on the website.
An important factor here is playing out the content in real time because good content should always correspond to the current situation. As a rule, what interested the customer ten months ago is not relevant. For example, if a shopper purchased an outdoor spotlight in the past, he likely won’t respond to content with similar offers, but he may be interested in other outdoor décor. A good personalization solution responds to each customer's needs from the first click and learns in real time with each subsequent click.
Content personalization benefits retailers and customers. In fact, customer loyalty is strengthened when content relevant to the customer is promoted. This leads to higher click-through and purchase rates, and ultimately to more sales for the retailer.
How do retailers incorporate content personalization into their customer approach?
Depending on the retailer's intention, personalized content can inform, entertain, advise or inspire. There are no limits to the retailer’s creativity when it comes to content.
One example of personalized content in action is topic-specific articles in a DIY store’s blog. Based on the interests of the store visitor, relevant posts are shown to inform and advise them. A customer interested in plants and gardening will be shown blog posts that fit this category, e.g., how to build a raised bed and which plants are suitable for such a bed.
Let’s explore another example from a fashion retailer that sends out a print magazine to its customers twice a year. In addition to a general section with colorful content on fashion, the retailer can include ten pages of personalized articles. Here, customers read articles on styling topics tailored to them, including product recommendations, based on their click and purchase behavior in the online store.
Content personalization at Douglas: Beauty stories in the online shop
Europe's leading beauty retailer relies on a holistic individual customer approach with many different use cases for personalization.
Recently, customers have also received personalized content recommendations on the home page of the Douglas online store. Here, GK AIR Personalization calculates the appropriate "beauty stories", or articles about care and cosmetics, based on the click and purchase behavior of the online store visitors. The AI solution learns the correlations between product and content interaction in the store and can thus display the most suitable beauty stories for each customer.
Content personalization at Betti Bossi: Relevant recipes in the online store and app
Betti Bossi is part of the Coop group of companies and has been an online portal offering various products and services related to cooking and baking since 2001. To offer a personalized shopping experience to customers in the online store, the company uses GK AIR Personalization. In addition to relevant product recommendations, Betti Bossi customers receive content recommendations in the form of suitable recipes. This is how Betti Bossi succeeds in increasing user experience and sales.
Want to learn more about content personalization? Contact our expert, Mr. Personalization, on LinkedIn or via email at This email address is being protected from spambots. You need JavaScript enabled to view it.
As retailers undergo digital transformations and become more innovative, customer data will become increasingly important. But these advancements aren't without risk. According to Cisco, 86% of consumers are concerned about their data privacy and 19% have terminated a relationship with a retailer that they felt was misusing their data.
One innovation in particular has sparked controversy over data usage – the cashierless store. These efficient and experiential stores don't require anyone to work the cash register, instead they rely on in-store technology to track a shopper's purchases and automatically charge the credit card on file.
In the most well-known version of cashierless technology, hundreds of cameras follow a shopper's every move. This modern store format has caused a divide between consumers who are delighted by the efficiency and those who are hesitant to visit a scanless store with cameras. But luckily, there are other ways to implement a cashierless store that'll bring more shoppers to the side of innovation.
The Concerns Surrounding the Camera-Centric Model
Some scanless store formats rely solely on cameras that together can view every corner of the store, capturing thousands of customer images a day. While there is typically no facial recognition used, some shoppers are hesitant to have their images taken and stored by the retailer.
According to Street Fight Magazine, consumers have also cited "the potential for data breaches, a lack of legal accountability for protecting shoppers' data, and even a potentially negative impact on low-income people and people of color" as top concerns for camera-based checkout.
From the retailer's point of view, cameras also pose logistical issues. While most cashierless shoppers failed to cheat the camera system, it's not impossible to do so. One technology reporter successfully shoplifted from an Amazon Go store by simply changing clothes in the bathroom mid-shopping trip. The average shopper likely won't do this, but this anecdote proves the potential for errors with a camera-only system.
And, while it may seem less expensive than other scanless options, the price of a camera format includes the costs of the cameras and the costs associated with processing and storing all the footage. Furthermore, according to an article from Focal Systems, stores using cameras will also require shelf weight sensors to become at least 95% accurate, adding an additional cost.
Alternatives to In-Store Cameras
To avoid these privacy concerns, increase accuracy over time and offer customers alternatives, GK GO provides another approach to cashierless. In a GK GO store, no video footage is required because GK utilizes Shekel Product Aware shelves and Hitachi's 3D LiDAR technology to determine which items left the shelves and with whom.
The benefits of a camera-free store are plentiful. The first benefit is the freedom of choice. In a GK GO store, the customer provides consent for data sharing. By opting in, they receive a hyper-personalized experience with recommendations and promotions appearing on their smart phone along with real-time basket updates.
If a customer opts out of data sharing, they are still welcome to use the store as a guest. This will not require a data transfer and the guest shopper will be able to checkout at a payment kiosk.
GK GO also reduces total cost of ownership and time to market for new products. With LiDAR, retailers don't need to process large video streams. Instead, a few weight samples are enough to introduce a new product and the machine learning, which will continue to improve accuracy over time.
From an aesthetic point of view, LiDAR doesn't require any particular lighting and can be positioned higher than cameras, eliminating a potential eye sore from the store's layout. When the store looks the same as it did before implementing the GK GO technology, skeptical shoppers will be more likely to experiment.
Protecting Privacy Shouldn't Limit Innovation
With self-scanning stores expected to triple by 2027, it's important that customers feel comfortable with the new in-store innovations. GK GO eases the transition by giving shoppers a choice of how to shop and protecting their data privacy.
To learn more about GK GO visit our website or schedule a conversation with us today.
Sales rates can fluctuate for any number of reasons. Something as simple as the day of the week can influence a person's shopping behavior. This creates a challenge for retailers as they strive to have the right products available when a customer wants them.
This challenge is particularly complex for grocers that sell perishable food. In fact, according to the United Nations Environment Program, approximately one-third of all food produced in the world is lost or wasted every year. As a result, grocers must find a way to limit their contributions to the annual 1.3 billion tons of food wasted.
Luckily, artificial intelligence offers a path forward. With data-driven dynamic pricing capabilities, retailers can maximize the success of the turnover and earnings strategies while giving customers a good deal and minimizing food waste.
"Retailers face a broad spectrum of challenges. They must, for example, find solutions for consumers who are calling for more sustainability, while expecting fresher and larger inventories to choose from. They also have to deal with an intensifying competition in the market space due to an increasingly challenging global economy, as well as growing complexities and rising costs. The combined force of GK CLOUD4RETAIL, GK AIR and IBM Consulting offer all-encompassing solutions that enable retailers to digitize their infrastructure, reform their business strategy through data-based decisions and apply cutting-edge technology to transform the customer experience. Particularly in food retail, these solutions make a tremendous impact in avoiding food waste by adjusting prices dynamically based on their respective due date and other external factors. Together, IBM and GK are building solutions today, that help retailers solve the challenges of tomorrow," knows Jens Spring, Senior Partner Recruitment Leader, IBM Partner Ecosystem – Germany.
What is GK AIR Dynamic Pricing?
GK AIR Dynamic Pricing enables retailers to take greater control of their inventory as well as price products in a way that optimizes customer loyalty. The as-a-service offering is available on IBM Cloud with IBM Kubernetes and Red Hat OpenShift. These key integrations bring AI-powered pricing to any environment, whether it's on premise, in the cloud or via IBM Cloud Satellite. This partnership enables retailers to manage the lifecycles of products with limited shelf-life more sustainably.
"IBM Cloud offers the kind of flexibility retail customers demand," says Jens Scholz, CEO, GK Artificial Intelligence for Retail AG. "Retailers have mixed requirements for the solutions they own and how – and where – they are hosted. IBM Cloud's ability to serve retailers needs regardless of their environment is key to our partnership."
With GK Software and IBM working in tandem, both brick-and-mortar as well as e-commerce retailers can use machine learning to account for a wide selection of pricing variables. These variables include current and historical data, inventory, transaction data, company targets, competitor prices, seasonal trends and regional factors including weather. The advanced solution then suggests the optimal price point and sell-off dates for products, drawing in customers whilst increasing sustainability.
How does GK AIR Dynamic Pricing Work?
The process for using GK AIR Dynamic Pricing is simple. When perishable inventory comes in, store associates scan the products with the help of a pricing app that has been specially developed for food retailers. In the app, the staff can enter current stock levels and best-before dates for every product. Then, advanced algorithms calculate an optimal price.
AI-supported pricing solutions rely on current and historical data to predict the sell-off date for perishable items. Depending on how the forecasted sales timeline deviates from the expiration date, GK AIR Dynamic Pricing lowers or raises the price completely automatically . For example, if a product is predicted to sell three days before it expires, due to availability of inventory or other residual factors for example, the pricing software will recommend a higher price than if it was to expire the next day. The price strikes the right balance between supply and demand to ensure the price is appropriate for the customer and the retailer.
Additionally, GK AIR Dynamic Pricing creates a database for inventory and expiration date information. This way, retailers achieve transparent reporting for their store by digitizing the process.
What are the benefits of GK AIR Dynamic Pricing and IBM's Partnership?
The benefits of GK AIR Dynamic Pricing extend beyond ad-hoc in-store price changes to the ability to perform price optimization across the entire assortment and product lifecycle. This is especially important for fashion, luxury and beauty industries that can also benefit from GK and IBM's collaboration. In these industries, dynamic pricing should begin with the introduction of a new item, be applied throughout its peak popularity and end with the markdown and inventory clearing phase.
No matter the industry, it is difficult to price a complete assortment with the level of detail and frequency required to boost profits. As a demand-based and AI-driven price optimization solution, GK AIR Dynamic Pricing helps retailers not only automate, but optimize their pricing process, allowing them to focus on strategic decisions and improving sales KPIs across the board.
What's more, GK and IBM's partnership is designed to support retailers throughout the integration process. According to Michael Scheibner, Chief Strategy Officer, GK Software, "Our collaboration with IBM brings a holistic solution to retail customers beyond the expertise needed to integrate GK technology on IBM Cloud. IBM is providing advisory services to customers based on years of deep industry expertise, helping customers to optimize their strategy and operations as well as their technology."
How can GK AIR Dynamic Pricing and IBM Help Your Business?
To learn more about how GK AIR Dynamic Pricing and IBM Cloud can improve sales and boost your sustainability efforts, visit our website or contact us today!
