Customer preferences and expectations often evolve too rapidly for marketers to keep up with. Here’s where AI in retail media is changing the game. AI is helping CMOs stay up-to-date and continually adapt to survive and thrive.
From enhanced customer experience to streamlining operations, AI is revolutionizing businesses globally. Naturally, organizations are heavily investing resources in the latest technology. Amazon, for instance, is a major retail media network and has invested $4 billion in AI startup Anthropic to advance Gen AI technologies. In April 2024, the e-commerce platform announced a €700 million investment in robotics and AI-powered technologies across Europe.
But how can CMOs ensure their AI investments in retail media reap benefits long into the future? Sustainable growth is the key to future-proofing business investments.
Investing in scalable solutions is not just advantageous but imperative. However, CMOs must ensure that the strategic shift toward growth is sustainable for the business in the long run. Here are some ways to achieve that:
- Tech Integration: Opt for solutions that seamlessly integrate with the existing systems and adapt to the evolving needs of the business strategy. This ensures that the firm capitalizes on every opportunity without any disruptions.
- Premium Personalization: Craft personalized messages that resonate with the target audience. Focus on creating valuable premium experiences for the customer, enhancing consumer satisfaction, and fostering loyalty.
- Predict and Measure Attention at Scale: Leverage the capabilities of AI to predict consumer behavior. Meet the consumers where they are and deliver tailored offerings for individual customers at scale. The longevity of any business depends on its ability to anticipate market shifts and customer demands.
- Collaboration with AI Providers: Like Amazon’s collaboration with Anthropic, collaborate with AI technology providers to gain access to the latest tools and expertise. This ensures the business stays ahead of the curve and does not lose any opportunity.
- Culture of Learning and Innovation: Encourage a mindset of continuous learning and innovation within the team. Provide the team with training and opportunities to develop and grow their AI-related skills, equipping them with the latest trends and techniques.
- Performance Tracking: Establishing measurable KPIs is critical to assess the impact of AI investments. Track the metrics to measure the performance of investments to gauge their effectiveness and make informed adjustments if necessary. This step ensures the optimal use of limited resources.
As technology evolves, CMOs cannot overlook ethical considerations. Respecting customer privacy, data security, and transparency fosters better credibility and customer relationships. CMOs must implement guidelines and standards to ensure the responsible use of AI.
The Way Ahead
Strategic integration of AI can help a business grow exponentially. By investing in scalable and sustainable solutions, CMOs in retail marketing can future-proof their investments in AI. To maximize the ROI on these investments, CMOs need to implement strategies that create premium experiences for consumers, collaborate with AI providers, and track KPIs. CMOs must encourage an environment of innovation and ethical standards to sustain the success of their investments.
