Artificial Intelligence is a powerful tool and proven method for substantially boosting sales. Using AI for this purpose also presents a delicate balancing act for retailers, who must protect customers’ sensitive, personal information while exploring their shopping habits.
Machine learning gives merchants the ability to build consumer profiles on many levels. It analyzes their buying habits, including the types of items they purchase most frequently, down to the day of the month.
Intelligent systems can mine data regarding which customers wait until sales to buy items, what products they shop for, and overall spending patterns. Merchants can use this knowledge to time promotions for maximum profits. They could also try promotions for cash-only purchases to reduce swipe fees charged by banks.
Automated intelligence is overall a superb way to generate revenue and provides independent retailers the means to stay on par with rival chain establishments.
While AI can be a powerful resource, it can also be an easy target for cybercrime. The system is not meant to be a gatekeeper for personal data. Indeed, artificial intelligence programs can be especially prone to damaging credit card and identity theft. Consider that a cybercriminal isn’t looking to necessarily attain individual accounts; all customer information in your database can be swept up at once.
As machine learning generates large amounts of data, the bigger the target on its proverbial back. Hackers can use the same information that a retailer gathers to gain easier access to high-tech security features like device fingerprints.
This fraud safeguard works by websites compiling a large number of small details. The combination serves as a fingerprint that can detect suspicious logins and bots, and other telltale details of a cyber-attack.
Make sure to do your research on ways to dampen the possibility of digital attacks using the latest technology. Staying one step ahead of cybercriminals is key to preventing data breaches.
When personal data is compromised, ethical business owners provide potential victims with information about the breach. To stay on their patrons’ good side, merchants will sometimes offer costly services such as identity theft protection and free access to credit reports for a certain period of time.
No matter your efforts, the business risks alienating consumers. Even loyal patrons may think you’ve crossed a line by allowing their sensitive data to fall into a thief’s hands. The resulting negative publicity could hit sales and could put your business into financial free-fall.
Using automated intelligence to create incredibly detailed customer profiles allows for personalized marketing through targeted promotions, recommendations and many additional factors.
However, victims of identity theft will scrutinize how you let the system break down. It is the merchant’s responsibility to closely examine cracks in their automated defense and fill them as soon as possible.
The use of modern innovations like artificial intelligence gives sophisticated hackers a seat at the table. Business owners have a very serious duty to protect customer assets while building data files. There is not always an easy solution but finding one is essential to maintaining your good name.
