Create winning shopping experiences with generative AI

Summary

This engaging talk delves into the transformative power of generative AI in retail, highlighting its potential to enhance customer experiences and drive new product innovation. The speaker, with a rich background in the industry, takes the audience on a historical journey from ancient trade to modern e-commerce, emphasizing the evolving consumer behaviors and the challenges faced by retailers. The script underscores the importance of leveraging first-party data and AI technologies like Google's Vision AI to personalize shopping experiences and foster customer loyalty. It also showcases how generative AI can streamline new product development, offering a glimpse into the future of retail where personalized content and innovative products are the norm.

Takeaways

• 🎉 The speaker is excited about the potential of generative AI in creating winning shopping experiences and has a rich background in retail and CPG industries.
• 🛍️ The retail industry is constantly evolving and faces various challenges such as changing consumer behaviors, supply chain disruptions, and regulatory changes.
• 📈 Generative AI can help retailers by providing better insights, improving customer engagement, and accelerating product innovation.
• 🔍 The importance of first-party data is increasing as third-party cookies are phased out, making it crucial for retailers to leverage their own customer data effectively.
• 📚 The speaker highlights the historical context of retail, from bartering in 9000 BC to the modern online shopping era, emphasizing the enduring human desire to trade goods.
• 💡 Geni (generative AI) can aid in product discovery by creating personalized shopping experiences that adapt to the shopper's needs and behaviors.
• 🤖 Google's Shelf Vision AI technology is an example of how AI can be used to gather data on in-store shopping behaviors, inventory levels, and merchandising to enhance the shopping experience.
• 👥 The speaker emphasizes the importance of human connection in retail, suggesting that AI can help forge stronger bonds with shoppers by personalizing communication and understanding unique needs.
• 🚴‍♂️ An example is given where generative AI helps a shopper find a specialized bike for triathlons and commuting by filtering and consolidating information from various sources.
• 🍔 A case study with McDonald's illustrates how generative AI and edge computing can be used to enhance customer and employee experiences, making operations more efficient and personalizing the service.
• 💡 The speaker suggests that generative AI can transform private label and new product development by leveraging both internal data and collective knowledge from platforms like Google to unlock business value.

Q & A

What is the speaker's background in the retail and CPG industries?

The speaker started early in the retail and CPG industries, with their first job being at the India Coca-Cola headquarters in the late 70s, followed by a job at an Italian retail boutique called United Colors of Benetton. They later worked at L'Oreal, Estee Lauder, and currently hold a role at Accenture, accumulating 27 years of experience in the industry.

What is the significance of the speaker's early job at United Colors of Benetton?

The speaker's early job at United Colors of Benetton involved folding sweaters and helping customers with outfits, which provided them with foundational experience in customer service and product presentation, crucial skills in the retail industry.

What are the challenges the retail industry faces according to the speaker?

The retail industry faces challenges such as changing consumer behaviors, supply chain disruptions, technology obsolescence, cyber attacks, regulatory changes, and global shifts, which make it a dynamic and ever-evolving sector.

What role does generative AI (geni) play in the retail industry as per the speaker?

Generative AI is suggested as a potential solution for the retail industry, helping to connect people to products more efficiently, generate a holistic view of shoppers, and accelerate product development.

Why is first-party data becoming more critical in retail?

First-party data is becoming more critical due to rising customer acquisition costs, changing privacy laws globally, and the phasing out of third-party cookies, making it harder to acquire zero-party data without customer loyalty.

What is the historical context provided by the speaker for the retail industry?

The speaker provides a historical context dating back to 9000 BC, mentioning the earliest recorded trading of goods with sheep and cows, and then fast forwarding to the opening of the Moravian Bookshop in 1745, which was the first retail store in America, and eventually leading to Amazon selling books online.

How does the speaker describe the evolution of the customer purchase journey due to cookies?

The speaker describes a shift in the customer purchase journey due to cookies, which made it easier for customers to find things they didn't know they needed. However, with changing privacy laws and the phasing out of cookies, the journey is becoming more about retailers anticipating customer needs and being thoughtful throughout the shopper journey.

What is the importance of engaging all five human senses in retail experiences according to the speaker?

Engaging all five human senses in retail experiences is important because it helps form bonds with customers. When customers' senses are stimulated, the experience becomes more memorable and personalized.

What is the role of Google's Shelf Vision AI technology in retail as mentioned by the speaker?

Google's Shelf Vision AI technology helps in capturing images from various sources such as robots, fixed cameras, and cell phones, which are then tabulated into data. This data provides insights into shopping behaviors, in-store inventory levels, shelf merchandising, and pricing, helping retailers to better delight their shoppers.

How did McDonald's enhance their customer and employee experience with the help of Accenture and Google?

McDonald's partnered with Accenture and Google to create a more efficient operation by automating mundane tasks and personalizing the customer experience. They introduced outdoor mobile ordering boards for faster service and used data capture to offer personalized offers and ordering experiences.

What is the potential business value that generative AI can bring to new product development according to the speaker?

The speaker mentions that generative AI can bring a projected $30 billion in business value to new product development by accelerating the process and providing insights that can help in creating concepts that are more likely to succeed in the market.

How does the speaker suggest established retailers can reinvent private label products?

The speaker suggests that established retailers can reinvent private label products by focusing on quality and meaningfulness, which can drive more loyalty and profitability. They should leverage their scale and first-party data to bring customers back with more meaningful products.

What is the role of generative AI in new product innovation portfolios?

Generative AI plays a role in new product innovation portfolios by generating concepts at scale, sourcing trends from both external and internal data, and creating a larger set of concepts than a human could in the same amount of time. This allows human teams to refine and develop these concepts further, ensuring they align with consumer trends and preferences.

Outlines

00:00

🎉 Introduction to Generative AI in Retail

The speaker begins by expressing excitement about the audience's presence and introduces the topic of using generative AI to create winning shopping experiences. They recount their early experiences in the retail and CPG industries, starting from accompanying their grandfather at the India Coca-Cola headquarters to working at a boutique and eventually leading to their role at Accenture. The speaker sets the stage for a discussion on the evolution of retail, the impact of generative AI, and its potential to revolutionize product discovery, retailer mind-reading capabilities, and innovation in private labels. They emphasize the challenges faced by the retail industry due to changing consumer behaviors, supply chain issues, and technological advancements, and pose the question of whether generative AI could be the solution.

05:00

🛍️ The Changing Landscape of Retail and Customer Loyalty

This paragraph delves into the challenges faced by direct-to-consumer (DTC) brands and venture capital-funded startups due to the rising customer acquisition costs and the decline in third-party cookie data availability. It highlights the opportunity for traditional retailers with scale and first-party data to leverage their advantages. The speaker discusses the importance of creating interactive and personalized shopping experiences that engage all five human senses, both online and in physical stores. They introduce Google's Shelf Vision AI technology as a tool for gathering data on shopping behaviors, inventory levels, and pricing to enhance the shopping experience. The paragraph also touches on the significance of forming human connections and the role of AI in personalizing communication to meet customers' unique needs.

10:01

🚀 Enhancing Customer Experience with AI and Edge Computing

The speaker provides an example of how McDonald's, in partnership with Accenture and Google, utilized generative AI and edge computing to improve customer and employee experiences. They describe the implementation of outdoor mobile ordering boards for faster service and the use of customer data to offer personalized experiences. The paragraph emphasizes the power of AI to automate mundane tasks, allowing humans to focus on creating connections. It also discusses the potential of generative AI in new product development and private label reinvention, suggesting that the combination of internal brand data with Google's collective knowledge can unlock significant business value. The speaker notes the current challenges for startups due to higher customer acquisition costs and the reduced flow of venture capital funding, positioning it as an opportune moment for established retailers to innovate.

15:03

🌟 The Future of Product Innovation and Private Label with Generative AI

In the final paragraph, the speaker discusses the transformative potential of generative AI in retail, focusing on personalized content experiences and new product development. They highlight the benefits of using AI for trend analysis and concept generation in product development, using an example of a moisturizing sunscreen. The speaker explains how an AI accelerator can generate a large set of concepts by combining external and internal data sources, which can then be refined by human teams to ensure they resonate with the target consumer segment. The paragraph concludes with a vision of generative AI transforming the retail industry by challenging traditional methods and the importance of asking the right questions to harness its power.

Keywords

💡Generative AI

Generative AI refers to artificial intelligence systems that can create new content, such as text, images, or music, that is similar to, but not identical to, existing content. In the video, it is discussed as a tool for creating winning shopping experiences by personalizing content and accelerating product innovation. The script mentions how generative AI can help in areas such as better-trained shop staff, improved marketing communications, and more efficient product discovery.

💡Retail Industry

The retail industry encompasses all the activities involved in selling goods or services directly to consumers for personal or household use. The video script discusses the evolution of the retail industry, from its earliest forms of trading goods to modern online shopping, and how generative AI can address current challenges such as supply chain disruptions and changing consumer behaviors.

💡First-Party Data

First-party data is information collected by a company from its own customers through direct interactions, such as website visits, purchases, or subscriptions. The script highlights the increasing importance of first-party data in the context of rising customer acquisition costs and the phasing out of third-party cookies, emphasizing its critical role in personalized marketing and understanding shopper behavior.

💡Consumer Acquisition Cost

Consumer acquisition cost refers to the expense associated with convincing a potential customer to buy a product or service for the first time. The video explains how this cost is rising due to changes in privacy laws and the disappearance of third-party cookies, making the use of first-party data and generative AI more crucial for retailers to efficiently connect with consumers.

💡Shelf Vision AI

Shelf Vision AI is a technology mentioned in the script that can analyze images taken by various devices to gather data on shopping behaviors, inventory levels, and merchandising. It is an example of how AI can help retailers gain insights into shopper preferences and optimize in-store experiences, as illustrated by the speaker's past experience at a retail store and the potential application in a modern retail setting.

💡Personalization

Personalization in retail refers to tailoring products, services, or marketing messages to individual consumer preferences or needs. The video script discusses the importance of personalization in creating engaging shopping experiences, both online and offline, and how tools like Google's can help retailers provide a unique shopping experience for each customer.

💡McDonald's

McDonald's is used in the script as an example of a company that has partnered with Accenture and Google to enhance customer and employee experiences using AI and edge computing. The video describes how McDonald's aims to create memorable and personalized experiences for its customers, making their visits faster and more efficient through technology.

💡New Product Development

New product development is the process of creating and launching a new product or service. The script discusses the challenges and costs associated with this process and how generative AI can help by providing insights and accelerating the creation of new product concepts. It mentions a tool developed by Accenture that combines institutional knowledge with Google's vast data to generate product concepts at scale.

💡Private Label

Private label refers to store brands or products that are produced for a specific retail or wholesale customer. The video script explains how private label products have evolved from being cheap alternatives to becoming points of differentiation and drivers of store loyalty. It also discusses the potential for generative AI to unlock business value in private label products by combining internal and external data for new product innovation.

💡Venture Capital

Venture capital is financing provided by firms or individuals to small, early-stage, innovative companies in exchange for an equity stake in the company. The script mentions the decline in venture capital funding for direct-to-consumer (DTC) brands due to high customer acquisition costs, creating an opportunity for traditional retailers with scale and first-party data to innovate and attract customers.

Highlights

The speaker expresses excitement about the audience size and introduces the topic of using generative AI to enhance shopping experiences.

Shares personal background in retail and CPG industries, starting from early experiences with her grandfather at Coca-Cola to roles at L'Oreal and Accenture.

Outlines the speaker's desire for the tools of generative AI during her early retail career for more efficient product discovery and innovation.

A brief history of retail from 9000 BC to modern times, highlighting the evolution and current challenges in the industry.

The importance of first-party data in a world where third-party cookies are disappearing and privacy laws are tightening.

Generative AI's potential to create a more holistic view of shoppers and accelerate product development.

The changing landscape of customer acquisition costs and the need for retailers to be more thoughtful in the shopper journey.

The necessity for all retail channels to be interactive and personalized to engage customers' senses.

Google's tools for personalizing online shopping experiences and the importance of continuous learning about customers.

The concept of 'mind reading' in retail, using technology to understand and meet customer needs effectively.

Google's Shelf Vision AI technology as a tool for understanding in-store behaviors and inventory levels.

The role of AI in personalizing communication with shoppers and making the shopping experience more meaningful.

An example of how generative AI can assist in the specialized purchase process, like finding a bike for triathlons and commuting.

A case study of McDonald's partnership with Accenture and Google to enhance customer and employee experiences.

The impact of generative AI and edge computing on streamlining operations and personalizing customer experiences at McDonald's.

The potential for generative AI to unlock $30 billion in business value in new product development.

The transformation of private label from cheap alternatives to points of differentiation and drivers of store loyalty.

The challenges and costs associated with new product innovation and how generative AI can help mitigate these through trend analysis and concept generation.

Accenture's accelerator for product development teams, combining institutional knowledge with Google's vast data to generate new product concepts.

The transformative potential of generative AI in retail, including personalized content and new product development.

A closing thought on the importance of asking the right questions to harness the power of generative AI in retail.

Transcripts

[Music]

I'm mon that I'm so great to be here

with you um I was worried it would just

be me and a couple people so I'm very

happy to see some friendly faces in the

audience and excited to speak with you

today about creating winning shopping

experiences using generative

AI I started very early in the retail

and cpg industries my first job was to

accompany my grandfather to his office

at the India Coca-Cola headquarters

which was in Mumbai back in the late 70s

I used to take notes for him in his

meetings and I used to draw pictures

which hung over his desk and then fast

forward a couple of years later my first

paid job was at an Italian retail

Boutique called United Colors of beniton

I folded colorful sweaters according to

their very intricate folding technique

if you if you remember the store and I

helped customers put together outfits

for whatever they needed fast forward a

few years ahead of that and uh those

experiences led me to L'Oreal Estee

Lauder mandes and now my role at

Accenture so after 27 years in the

retail and cpg industries I wish that I

had some of the things that I'm about to

show you back then when I was a store

clerk at

beniton first I'm going to recap 11,000

years of retail and we will take it from

there we'll talk about how consumers

discover products how retailers might do

some mind reading and how we can use

geni to advance new product Innovation

and private

label the retail industry sees a new

flavor of upheaval every year um retail

is at the mercy of many changing factors

changing consumer behaviors supply chain

disruptions technology obsolescence

cyber attacks regulatory changes Global

changes Etc it is one industry that has

truly seen it

all is geni the answer for the retail

industry let's find

out I love this gertrud Stein quote

whoever said money can't buy happiness

didn't know where to go

shopping so let's rewind to 9000 BC it

is ingrained in our psyche as humans to

trade goods so there was a sheep and cow

trade and that's the earliest recording

recorded trading of goods um and then

fast forward to 1745 with the Moravian

Bookshop opening in Bethlehem

Pennsylvania um that is the result of I

see we have a fan from

Moravia from Bethlehem Pennsylvania um

so that is a result of a of a Google

search search what was the first retail

store in America and that was the answer

that was generated so about 250 years

later Amazon started selling books

online and I find it really curious that

the object of choice in both of these

retail Innovations were

books there are many geni use cases from

better trained shop staff better content

better marketing Communications easier

extraction of insights from first party

data and accelerated product Innovation

the efficiency in understanding and

communicating with Shoppers is becoming

increasingly

important and the reason for that is

that customer acquisition cost is rising

quickly as privacy laws globally are

changing it's not as costeffective to

buy thirdparty cookie data and cookies

are going away anyway it's hard to get

to zero party data from customers

without having their loyalty already so

the value of first-party data and a

Retailer's ability to use it is going to

become more critical than

ever geni can help connect people to

products more efficiently it can

generate a more holistic view of

Shoppers and it can accelerate product

development and that's where we're going

to focus today so let's look into how

gen will Aid

Discovery so before cookies the purchase

Journey was was fairly linear so imagine

imagine if you will that you wanted a

pair of gold earrings you might just go

to a jewelry store and buy the pair that

was you know that you like the best or

was within your budget um but over the

last decade or so cookies have made it

easy for us to find things that we never

knew we needed but that's changing

quickly the DTC players the ankle biters

The Challengers that you might have seen

pop up in your Instagram feed they

aren't getting the same Venture Capital

funding that they once did because cost

to acquire is simply too high making the

return Horizon much longer for the

Venture Capital investors so this is an

opportunity for traditional retailers

who have a lot of scale and a lot of

first-party data this this is the moment

for

them Shoppers are more loyal to

retailers who can anticipate their needs

and throughout the Shopper Journey there

are opportunities to be more thoughtful

about what that Shopper is experiencing

each step of the

way all retail channels must be

interactive we form bonds as humans when

our five senses are engaged inore

experiences are better when they press

on each of those five senses and online

and mobile experience must be

personalized in addition to stimulating

visual

senses Google has lots of differentiated

tools that can make an online experience

more personal for a shopper

with Google tools and a connected

understanding of Shoppers every

individual can for example have her very

own product Discovery page that

incorporates what the retailer and brand

already knows about her and then adapts

as they learn new things about her needs

and her behaviors but retailers need to

make sure that they are continuously

learning about

her how can retailers read Shoppers

Minds so that they can meet their needs

in a truly accept

way shoer mind reading might sound

harder or more esoteric than it actually

is when we connect with one another as

humans we Forge bonds when I think about

the new connections I've made here over

the last three days and the bonds that

I've strengthen people that I don't get

to see all the time I am reminded of the

power of human connections and retailers

can approach their Shoppers in exactly

the same way when they ask questions

seeking to learn more they when they

Empower staff to serve Shoppers better

and when they communicate with Shoppers

in the more in the most effective way

they Forge bonds with those Shoppers

that become hard to

break here's an example of Google

technology that can help enable this

Bond Google's shelf Vision AI technology

images that can be taken by robots fixed

cameras cell phones can all be tabulated

into data and that data about shopping

behaviors in store stores inventory

levels at shelf merchandising pricing

all of those things can come together to

form insights to make retailers better

at delighting their Shoppers back in the

old days mystery shoppers snooped around

retail stores and they took inventory

and they took field notes on what was on

the Shelf how Shoppers were behaving um

they would look at merchandising

displays I almost got arrested a couple

of times in New York City in the early

2000s with my field notes when I was

trying to watch shop and and capture

what they're doing um would have been

nice to have this back then um shelf

Vision AI would have also been really

helpful back in my beniton days um if

past behavior is indicative of future

Behavior it is a really good thing to

find ways to automate observation of

human behavior in the store and that

will in turn help the retailer customize

and tailor those shopping

experiences consumers expect Brands and

retailers to understand their unique

needs and differences using AI to

personalize communication will bring

speed and scale to the process let's

look at at an

example okay geni is making it easier to

have meaningful conversations with

Shoppers in this Example The Shopper is

looking for a bike that they would want

to use for both triathlons and commuting

so this is a very specialized purchase

and the breath of internal and external

information that's available on on the

the interwebs can come together and geni

can filter it consolidate it and

summarize it and that'll in make this

experience better for the Shopper but

also better for if there's an associate

working with this information a better

experience for that person as

well and here's an example of um some

great work that Accenture did with

McDonald's um McDonald's partnered with

Accenture and Google to enhance their

customer and employee experience and

when I think about my experience with

McDonald's I remember the McDonald's

Playland in the 1970s and 1980s I don't

know if many of you remember that um but

I remember it well it was the place of

birthday parties and playdates during

the Subzero weather snowy days back in

the midwest um and it engaged multiple

human senses it was memorable and

nostalgic as a result and I think today

McDonald's is aiming to create a

similarly feel-good experience for their

customers and in order to do this they

needed to find ways to operate more

efficiently and farm out mundane tasks

and they also needed to learn more about

their customers to create that valuable

experience so here's an example of how

the power of gen Ai and Edge Computing

came together and the the first moment

of the truth for the customer would be

that her McDonald's experience is faster

than usual and very easy with an outdoor

mobile ordering board it's easier Order

ahead and pick up she'll be in and out

in no time and in her second Moment of

Truth she'll be served in a more

personalized way because McDonald's can

capture some information about her when

she's when she's there and she can then

receive offers and have ordering

experiences that meet her needs gen Ai

and Edge Computing bring the back of the

house and the front of the house

together seamlessly for McDonald's

customer data will be captured turned

into insights that can be actioned into

an increasingly personalized experience

for every

customer I think the most powerful gift

that gen can give us is the gift of time

by taking care of the mundane gen gives

us the space to do what we humans do

best take the time to create connections

with each other and with our

customers so where can how can we think

about private label and new product

development in a new way

so new product development stands to

gain a projected $30 billion in uh in

business value with Genai store brands

used to be cheap the the fast follow of

high velocity SKS and I remember

groaning as a kid when my mom brought

the lookalike Oreos home from The

Dominics in Chicago but private label

has become a point of differentiation in

some cases and even a driver of store

loyalty there are certain C products

from Costco that I just won't substitute

I will go to Costco specifically to get

those things and and I imagine others do

that as well when a brand or Retailer's

internal data is combined with the vast

Collective knowledge of Google search

that $ 30 billion of projected value in

new product development can be unlocked

faster and with changing privacy laws

now is the right time for product

innovators to tap into

geni startup starve without cookies

companies lose on average $29 for every

new customer they acquired compared to

$9 in 2013 so as a result it's harder to

get Venture Capital funding and without

the Venture Capital funding flowing like

it did in the early 2010 era there are

fewer Challenger brands that can get

their start on Instagram so it's the

right time for those established

retailers who have scale to bring

customers back into their stores and

back onto their apps with more

meaningful products the time for private

label reinvention is now highquality

meaningful private label will drive more

loyalty and more profitability than the

way that companies acquired customers um

as we knew it a few years

ago however that said developing new

product Innovation is is costly it's

manual it's timec consuming and it's

limited to the institutional and

individual knowledge of new product

development teams and and I I've been a

part of those teams and your your new

product pipelines are really only as

good as the people that are are

developing them and the risk of failure

is costly Trends are hard to nail down

but this is where geni stands to deliver

that $30 billion in business

value Google insights is a great tool

for product development teams to gain

understanding of what is trending across

various categories Accenture has

developed an accelerator for product

development teams to combine their

institutional knowledge of consumer

needs and and their Concepts that

they've written in the past with

Google's vast Collective knowledge let's

see

how Brands Place big bets on the new

products that they lost launch each year

on average new products comprise 30 to

60% of a Brand's annual

revenue

so in this accelerator new product

Concepts will be generated at scale so

in this example you can create concepts

for a we we're going to look at a

concept for moisturizing sunscreen it's

going to S Source top external product

Trends from social media from sales data

it can Source Trends externally and

internally based on the data that the

brand or company already has in this

example we are sourcing Trends from

Google

shopping and once those Trends are

sourced we can start to develop an

Insight if we if we know our our Target

consumer segment we can start to

handpick those those Trends from from

what is returned from this

search and then a white card concept is

generated and when when consumer package

Goods companies or retailers developing

private label develop their new product

Innovation portfolios more likely

they're not they're testing

qualitatively and quantitatively with a

white card concept so what this does is

it takes all of the those external

sources of information and combines them

with the internal sources to create a

larger set of Concepts than a human

could create in the same amount of time

and then this is where the human touch

comes in so once this accelerator has

created the the concepts the human team

can come in and really make those

Concepts come to life really ensure that

they're speaking to what their target

target consumer segment is interested in

and that they are incorporating the best

Trends so that they can win big win fast

and have a a really strong new product

pipeline this was built on G Gemini

ultra um with the vertex Ai and with

imagine in the vertex AI studio so

leverages some really great Google

tools okay so generative AI will

transform retail it will be absolutely

transformative by way of personalized

content experiences new products and all

of this will challenge our incumbent way

of of doing

things I'll end with another gerud Stein

quote

however this time I'm respectfully going

to disagree with her because I do think

the answers are there we just need to be

asking the right

[Music]

questions