Embrace The Change: How AI Is Shaping The Future Of Neighborhood Retail

From science fiction fodder to an everyday reality, artificial intelligence is quickly becoming indispensable to nearly every industry.  AI-powered tools are being used to generate promotional images, sift through applicant resumés, and even identify potential health issues in medical tests.  To keep up in an increasingly competitive landscape, embracing AI’s potential is an absolute necessity. The c-store industry is no exception.  With retail giants threatening to wipe out smaller convenience stores and independent retailers, it’s more imperative than ever to utilize AI and its myriad solutions.  Whereas in the past, much of this new technology would require an entire tech staff and a sizable investment, many of the latest advancements have put AI-powered tools within reach for small businesses.  Several companies now offer affordable, subscription-based platforms that give independent retailers the tools they need to remain profitable. Here are just a few of the ways retailers can use AI to help their business:

Anticipate Trends And Plan Accordingly

One of the biggest responsibilities of an independent retailer is to ensure that supply and demand are properly balanced.  While larger chains have the space to host a backstock of products for a rainy day, smaller convenience stores need to be more judicious in what they order and how they price their products.  Ordering too much, pricing too high, or failing to schedule enough staff can have disastrous consequences for the bottom line. One of AI’s biggest assets is its ability to anticipate trends and plan accordingly.  AI-powered tools use predictive analytics to forecast customer behavior and product demand, taking into account factors such as weather, local events, and fluctuating fuel prices.  This allows the small business owner to then order the ideal amount of product and schedule staff accordingly, minimizing missed sales opportunities and wasted product.

Train Employees

Inconsistent employee training is another issue that many independent retailers encounter.  While major corporations have fixed guidelines, educational programs, and even dedicated trainers at their disposal, smaller businesses often have to apply a more makeshift approach.  This results in inconsistent training, a lack of reinforcement, and higher staff turnover.  Ensuring everyone is properly and consistently trained requires a much higher amount of time, labor, and money. AI learning systems help fill in the gaps by delivering personalized training modules for each new employee.  Instead of applying a one-size-fits-all method, these systems can identify knowledge gaps and adjust training methods accordingly.  For example, some employees may do better studying written material or informational videos, while others may benefit from simulated exercises.  AI can determine an employee’s preferred learning style and even offer gamified learning experiences to improve engagement.  Managers can then track the process of their employees through dashboards that allow them to follow up when necessary.

Create More Personalized Marketing

Marketing is an easy fit for AI thanks to its ability to analyze customer purchase patterns and determine future behavior.  The secret to successful marketing is to identify what message works on which customer.  The daily coffee drinker may be more receptive to the half-priced coffee and donut combo, while someone who loves a particular brand of energy drink may be interested in getting discounts on a new flavor. AI loyalty programs can organize customers into different segments based on their behavior, then send them personalized promotions accordingly. These tools are also able to optimize when notifications and promotions are sent to the customer, such as when the customer is near a store.  This makes it easier to upsell and introduce customers to new products they might like.

Finding AI-Powered Retail Solutions

Independent retailers and small business owners don’t have to sacrifice profitability to introduce AI into their operations.  In many cases, organizations that provide independent retail solutions are already incorporating AI into their system.  National Retail Solutions (NRS), a leading provider of point-of-sale (POS) systems and payment processing solutions for independent retailers, has introduced new AI-powered tools as part of its upgraded Premium Features suite. The enhanced Premium Features suite includes several notable tools for independent retailers, including, among other things:

• A Panic Alarm Button to enhance store security

• E-commerce Integration to help small businesses expand their online reach by selling on NRS-built platforms

• DoorDash Integration to manage DoorDash orders directly through the POS system

• Security Camera Integration to deter theft and improve monitoring

• License ID Scanning to ensure compliance with age verification

• An Employee Time Clock to track attendance and improve payroll accuracy

• Advanced Data Reporting to give business leaders the information they need to make more accurate decisions

• Store Loyalty Programs to increase customer engagement and encourage repeat purchases

  Another major feature of NRS’ enhanced Premium Features suite is the new AI Product Recommendations feature, which allows independent retailers to identify the most popular selling products in their area.  This feature not only identifies which products are most likely to sell, but even offers suggested pricing to ensure higher sales and increased revenue.  Available for $29.95/mo with NRS Pay and $39.95/mo without NRS Pay, this new feature represents an easy, affordable way for small businesses and convenience store owners to begin incorporating AI into their daily operations.

Giving Humans A Leg Up

While there’s been a lot of talk about artificial intelligence eliminating jobs, the reality is that it makes jobs easier.  Managers who use AI to train employees, enhance ordering and scheduling, and drive customer engagement have more time and funds to grow their businesses and support their staff.  Far from replacing them, artificial intelligence gives independent retailers the assistance they need to remain competitive against big businesses and keep convenience stores in the game.