The software company Salesforce, which developed the cloud-based CRM software of the same name, presented at the K5 FUTURE RETAIL CONFERENCE 2024 together with Takko Fashion how modern technologies can be used to optimize processes and strengthen customer loyalty. The use of artificial intelligence (AI) plays a key role here.
Takko, one of Europe's largest fashion discounters, is primarily known for its bricks-and-mortar stores, but has also been operating an online store for eight years. As Tobias Stork, Head of E-Commerce & CRM at Takko Fashion, explained, online retail complements the business and enables Takko to reach customers in new ways. The company is continuing to expand in this area and now operates online stores in five countries. But how does AI help?
Artificial intelligence optimizes the shopping experience
Takko uses AI to improve the online shopping experience. Most of Takko's communication and interaction with customers takes place via mobile devices: Takko's mobile share is over 90%. It is therefore particularly important for the fashion company to offer simple and user-friendly navigation in the online store and to guide customers quickly and conveniently through the store from the search process to checkout.
Personalized product search
One example of AI support at Takko is the personalized product search. As Konstantin Müller, Senior Specialist Solution Engineer Commerce Cloud at Salesforce, explained, instead of entering specific products, customers can formulate their wishes - such as “light summer clothing” - and receive suitable suggestions from the AI assistant based on their preferences. By integrating customer preferences, such as favorite colors or previous purchases, the shopping experience is personalized and efficient.
When customers have found a suitable item, they can tell the Takko AI that they would like to buy this item, whereupon the AI assistant completes the purchase together with them without having to go to the shopping cart.
Accessibility
For accessibility, Salesforce offers the option of integrating the messaging channel with the AI assistant into various channels, such as WhatsApp or Facebook Messenger, so that you can use the channel you feel comfortable with. Speech-to-text functions can also be used not only in chat, but also to complete the purchase. This ensures that as many customers as possible can enjoy a smooth shopping experience.
Data-based CRM: added value through AI
Data and CRM play a major role. Because, as Hartmut Bischofs, Vice President Marketing & Commerce Retail at Salesforce, also emphasized, you need as comprehensive a picture as possible to provide customers with good and personalized service. For Takko, it is therefore important to track and analyze the entire customer journey - from purchase history and click behavior in the online store to interaction with customer service. With the help of Salesforce, Takko can process and analyze large amounts of data to understand customer behavior and create personalized offers.
Minimize returns
AI-supported analyses also help to minimize returns. By evaluating data from past orders, the company can draw conclusions about which products are frequently returned and why. This allows targeted measures to be taken to reduce the returns rate and increase customer satisfaction at the same time.
Rapid response to problems
Another advantage of using AI is the ability to automate processes and thus make them more efficient. Employees always have access to reports and analyses in real time. These make it possible to react proactively to problems, such as when deliveries arrive late or returns rates increase. The AI reports when certain items are frequently returned, indicating incorrect product descriptions or unclear size specifications. As a result, a product description can be automatically updated or a size table adjusted.
Automated marketing campaigns
In addition, automated marketing campaigns can be started with simple clicks, such as discount campaigns for items that sell more slowly. If the AI recognizes that a product has been purchased less frequently in the last 30 days, it suggests a discount campaign that can be triggered immediately. Such campaigns can then be played out via various channels such as email, Facebook or WhatsApp to target customers and boost sales.
Future prospects: expansion of AI and automation
Takko plans to further expand the use of AI and automation in the future. Automated returns analysis and personalized communication are just the beginning. The aim is to use the Salesforce Cloud to make processes more efficient and offer customers a seamless shopping experience.
