Retail Assortment: How AI is used in Basket Builder and Conversion Builder Strategies
In today's competitive retail landscape, businesses must constantly evolve their strategies to stay ahead of the curve. Two widely adopted retail strategies are basket building and conversion building. In this blog post, we'll explore the differences between these approaches and how artificial intelligence (AI), specifically the innovative HIVERY Curate Saas-based solution, can help simulate and quantify the value of each strategy.
Basket Builder Strategy:
The basket builder strategy aims to increase the average transaction value by encouraging customers to add more items to their shopping carts. This approach focuses on upselling, cross-selling, and promoting complementary products. Retailers can boost sales revenue and improve customer satisfaction by creating enticing product pairings and offering special deals.
Conversion Builder Strategy:
The conversion builder strategy focuses on converting potential customers into buyers. This approach emphasizes attracting new customers and convincing existing ones to purchase. Retailers implementing this strategy often invest in targeted marketing and pricing/ promotions strategies to reduce friction.
How AI can be used to qualify retail strategies:
AI-driven simulations:
AI allows retailers to simulate the potential impact of basket builder and conversion builder strategies. Using solutions like HIVERY Curate, you can predict how each strategy would perform in various scenarios by analyzing historical sales data and customer behaviors. This enables you to make informed decisions about the best path forward.
Customizable strategy parameters:
We know each retailer in each category has a set of merchandise rules and constraints that need to adhere to. With HIVERY Curate, retailers can customize their simulations based on specific business goals (i.e., revenue, volume) and constraints, such as ensuring certain brand flow, certain SKUs are kept, or certain SKUs have set expiry. All these constraints can be added to the AI modeling. This flexibility allows businesses to fine-tune their strategies and focus on the metrics that matter most to them.
Store-level insights:
AI solutions like HIVERY Curate leverage store-level data, which means store-level insights are 'baked" into its thinking. Leveraging store-level data means retailers and suppliers can start to understand the impact of each approach from the ground up. Shoppers vote with their dollars every day in the store, and AI-driven technology makes this visible. This means your decision about which strategy to pursue is derived from the most granular level.
Streamlined execution:
Once a strategy has been selected, HIVERY Curate can help retailers optimize their product assortments, manage their retail space, and automate the planogram process. This streamlined approach ensures a seamless implementation, maximizing the potential benefits of the chosen strategy.
Conclusion:
Both basket builder and conversion builder strategies offer unique advantages for retailers, but determining the best approach can be challenging. HIVERY Curate's AI-driven platform provides the tools to simulate, evaluate, and execute each strategy effectively, empowering retailers to make informed decisions and optimize their businesses for success.
Embrace the power of artificial intelligence with HIVERY Curate and revolutionize your retail strategy today.