Retailers can adopt a host of varying strategies in order to best achieve their sales growth targets. Among these, customer data stands out as a critical means, a game-changer that provides a competitive edge, drives revenue growth, and optimizes profitability.

At the Cool Product Awards 2024, held by Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy, Dr. Dinh Le Dat, Chairman of customer data platform Antsomi and Co-founder and Vice Chairman of Vietnam MarTech, spoke of the transformative role of AI in enhancing the customer experience within omnichannel retail.

Referencing Shopify’s latest report, he noted a significant shift in global retail competition over the next 2-3 years. Instead of competing on marketing budgets or the number of physical outlets, businesses will differentiate themselves through the customer experience and data utilization. He underscored that businesses capable of harnessing and analyzing vast volumes of customer data to deliver tailored solutions that enhance the customer experience and streamline operations will secure market leadership.

To leverage customer data effectively and boost revenue, Dr. Dat advised businesses to focus on building a unified customer profile across all touchpoints, including sales, customer service, and other interaction channels. Achieving this requires the adoption of advanced analytical tools to gain a deeper understanding of customer needs and to craft personalized approaches for each audience segment, ultimately exceeding customer expectations throughout their entire shopping journey.

AI-led customer service

In an era where consumers are increasingly informed and discerning, businesses must rethink their strategies by building meaningful, two-way communication with customers. One frequent misstep is bombarding customers with excessive promotional messages, often irrelevant to their interests or expectations. By focusing on measurable outcomes, such as click-through rates, engagement duration, or discount code usage, businesses can sharpen their approach and foster more impactful connections.

Harnessing advanced technologies like AI and machine learning takes customer engagement to the next level. These tools empower businesses to analyze behavior, automate care processes, and deliver hyper-personalized solutions with precision and speed. Modern chatbots not only handle queries but also suggest products tailored to a customer’s shopping history and preferences, turning mundane interactions into delightful experiences.

Insights reveal two pillars of sustainable retail growth. First, loyalty stems from delivering a cohesive experience, blending exceptional product quality with consistent, engaging communication across all channels. Second, sustainable success lies in nurturing current customers to spend more by offering genuine value and building long-term trust, not just in chasing new customers.

Dr. Dat highlighted a common pain point: the disconnect between online and offline customer care. Imagine buying a dress in-store, only to be treated as a complete stranger when visiting the brand’s website. This is a missed opportunity, especially since today’s shoppers often move fluidly between online and offline channels, browsing online before heading to a store or buying in-store and later exploring options online.

Retailers must step into the customer’s shoes, linking data across platforms to create a seamless shopping journey. Personalized recommendations based on purchase history and preferences elevate the experience, inspiring loyalty and maximizing each customer’s lifetime value.

Once customer data is optimized, how can businesses measure growth effectively? Dr. Dat suggests starting with the basics: evaluating the frequency and quality of customer interactions. The more meaningful the engagement, the greater the impact on revenue. Key metrics include tracking new website visitors, social media interactions, and in-store visits by returning customers, and identifying customers at risk of leaving.

Despite the growing influence of digital, he emphasized the enduring importance of offline channels, which are poised to dominate revenue streams for the next 3-10 years. A seamless blend of online and offline experiences isn’t just a necessity, it’s the future.

To offer a clearer roadmap, Dr. Dat introduced a customer lifecycle model centered on three game-changing factors: (i) customer engagement, (ii) purchase frequency, and (iii) the customer experience. Each factor includes multiple sub-metrics, but the real magic happens when businesses unlock growth across all three. By leveraging data insights, companies can turn these metrics into a powerful engine for revenue growth and market leadership.

With the relentless evolution of AI, this groundbreaking technology is reshaping industries, and retail stands out as one of its biggest beneficiaries. Imagine this: using AI to craft compelling sales content boosts productivity by 30-40 per cent, and leveraging AI for hyper-personalized customer experiences, like tailored messages or emails, drives revenue growth by 5-10 per cent. Meanwhile, employees empowered by AI tools see a productivity surge of up to 25 per cent, and integrating AI into software development boosts efficiency by 25-30 per cent.

These figures speak volumes. Embracing cutting-edge technology isn’t just a choice; it’s a lifeline for businesses looking to sustain and amplify their competitive edge.

But innovation doesn’t stop with AI. Global retail giants are diving into immersive technologies like augmented reality (AR) and virtual reality (VR) to revolutionize customer interactions. L’Oréal, a trailblazer in the cosmetics world, has redefined the beauty landscape with billions of virtual product trials enabled by its groundbreaking AR tools. Using platforms like Modiface and Skin Genius, customers receive in-depth skin analyses, examining wrinkles, firmness, and tone, paired with precise, personalized product recommendations.

The experience gets even better. With AR, customers can experiment with makeup or hair colors on their mobile devices, effortlessly finding their perfect match before purchasing. Collaboration with e-commerce powerhouses like Shopee have further elevated convenience, enabling online shoppers to “try” products in cyberspace. These cutting-edge efforts not only enhance customer satisfaction but also cement L’Oréal’s status as a visionary at the intersection of beauty and technology.

Dr. Dat takes this narrative further, highlighting data as the ultimate strategic weapon in today’s hyper-competitive market. Beyond driving revenue, data is the linchpin for seamlessly integrating AI into business processes, boosting productivity, and creating unparalleled customer experiences. Every piece of content and interaction, he continued, must be personalized to resonate deeply with customers, ensuring they not only see the brand’s value but also build lasting loyalty. In this rapidly-evolving era, businesses that master this art will not just survive, they will thrive.