Elevating Shopper Research: AI Knows What Consumers Are Buying Tomorrow

For the last few years, retail organizations have leveraged machine learning models to improve supply chain efficiencies and manage inventory. More recently, they have explored generative AI to make chatbots more conversational and to create content. But what about shopper research? 

How can brands use AI to understand the desires of their shoppers?

Breakthroughs in AI and data analytics, as well as platforms like Walmart Luminate, as acknowledged by CPGs at CES 2024, are powering new possibilities and potential in shopper research. For example, brands can now uncover insights into shopper behaviors such as how certain groups use buy online, pick up in-store (BOPIS). 

CPGs can also uncover brand-switching behaviors within their portfolios, identify effective pricing and promotions, and customize product assortments by store location. CPGs are sitting on piles of shopper data. Now they can put that data into action quickly — AI-driven insights know what consumers want today and what they will be buying tomorrow, next week, and next quarter. 

Better Shopper Data Paves the Way to AI

AI is only as good as the data that feeds into it; CPGs have access to strong sources of shopper information. Brands have their own shopper data, but they also have access to third-party panels, macroeconomic reports, and social listening insights. Add in retailer purchasing data and loyalty information and CPGs can use AI to deliver highly strategic findings on shopper behavior.

This hasn’t always been the case, but retailers’ platforms have been a catalyst for change. Brands can gain insights into millions of households. They can also pull data and ingest it into AI to get immediate strategic recommendations. 

Brands can study retailer dashboards and pore through spreadsheets of their own data readouts, but AI can speed up the process by reviewing the insights and delivering action items to grow sales or move volume. 

What CPGs Can Learn From AI

Using AI to read prolific amounts of shopper data can set up brands to learn about omnichannel shopping behaviors, innovate new products, forecast product demand, and optimize pricing, packaging, and promotions. It’s up to brand teams to chart the path forward.

Here are a few ways brands can leverage AI and shopper research: 

1. Advanced customer segmentation 

AI analyzes vast amounts of shopper data to create detailed customer segments based on behaviors, preferences, and demographics. The segments help brands tailor marketing strategies and new products to specific groups.

2. Predictive analytics

For shopper research, brands can forecast future shopping behaviors to assist with inventory, manage supply chains, and optimize product assortments to meet future demands.

3. Personalized shopping experiences 

Analyzing individual shopper data provides customized recommendations, offers, and promotions for individual shoppers, improving customer loyalty. 

4. Sentiment analysis 

Studying social media activity, reviews, and other online content, brands use AI to uncover shopper sentiment in the markets. How are they feeling about products and brands? AI can analyze feedback from various channels (surveys, social media, call centers) to extract actionable insights. 

5. Churn prediction 

Brands can study shoppers with AI by identifying patterns that indicate potential customer churn, igniting strategies for customer retention.

6. Customer journey mapping 

AI can track and analyze the entire shopper journey, from awareness to purchase. This provides insights into touchpoints that influence buying decisions, helping brands optimize their marketing and sales strategies.

AI Enhances Shopper Data

For decades, brand managers and analysts have been living inside spreadsheets, doing their best to predict how products will perform. Now, with AI, this work gets distilled down to minutes. CPGs that leverage AI-powered forecasting not only improve the performance of their products but also become leading collaborators among their retailer partners.

AI takes data-driven insights to new heights. The predictive technology understands shopper behavior and how it impacts a CPG’s goals. AI can predict what shoppers will be putting in their carts tomorrow and beyond, and it can forecast how the behavior impacts sales, revenue, and more.