Nearly 90% of convenience-store retailers are using or evaluating artificial intelligence (AI) projects. Eighty-seven percent of them report that AI positively affects revenue, and 94% say it lowers operating costs.
Art Sebastian, founder and CEO of NexChapter, a Des Moines, Iowa-based consulting firm helping retailers with loyalty, retail media and digital commerce strategy, delivered these statistics Monday at CSP’s Center Store Forum in Lombard, Illinois.
“AI-enabled planograms and layout updates can improve sales by up to 15%,” Sebastian added.
Looking at what a center store will look like in five years, Sebastian said c-stores are in the midst of shifting from static shelves to data-driven merchandising, from manual updates on shelves to real-time digital execution, from general promotions to personalized shopper promotions, and from cost-center perception to profit center through retail media networks.
To reach these goals, convenience-store retailers should continue focusing on current initiatives, Sebastian said.
“Evolve your loyalty program, expand your e-commerce beyond third party to first party and kiosks, and remove friction from your in-store checkout experience,” Sebastian said.
Sebastian also said retailers should consider in-app gamification to engage their most loyal customers.
“Consumers check their phone every five minutes while awake,” he said, adding that the in-app experience creates brand engagement from anywhere and that instant connected rewards lead to more in-store visits.
“Turn customer data into actionable value,” Sebastian said. “The more customers we identify, the more powerful our data and activations become.”
While most customers shop anonymously, loyalty programs, apps and digital payments turn anonymous shoppers into identifiable customers, he said.
“Identified customers unlock richer insights: who they are, what they buy and how often,” Sebastian said. “The more shoppers you move into the ‘identified’ circle, the more fuel you have for personalization and retail media.”
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.