BPM Analytics
How AI and ML are revolutionising virtual marketing & advertising for fashion brands
In a world where fashion meets technology, a revolution is taking place. We are living in an era where Artificial Intelligence and Machine Learning are joining forces to transform fashion brands' virtual marketing and advertising landscape. Gone are the days of generic ads and impersonal experiences. Today, AI and ML are breathing new life into the fashion industry, empowering brands to deliver personalised engagements, virtual try-ons, trend forecasts, dynamic pricing, and intelligent customer service.
Step into a realm where fashion and technology intertwine, as we explore how AI and ML are reshaping the way fashion brands connect with their customers.
Enhanced customer personalisation
AI and ML technologies enable fashion brands to provide highly personalised and interactive customer experiences. AI algorithms can generate tailored recommendations, product suggestions, and outfit inspirations by analysing vast amounts of customer data, including browsing behaviour, purchase history, and social media activity. As per a study by McKinsey, “35% of Amazon's sales are generated by their recommendation engine powered by AI.”
Unleashing the power of virtual try-on and AR
Virtual try-on and augmented reality (AR) technologies allow customers to virtually "try on" clothes, accessories, and even makeup, without physically visiting a store. By leveraging computer vision algorithms, AI can analyse body measurements, skin tone, and facial features to provide accurate virtual representations. According to a study conducted by Deloitte, “fashion retailers that incorporate virtual try-on technology can expect a 30% increase in conversions and a 40% reduction in returns.”
Drive success with intelligent advertising and targeted campaigns
Artificial Intelligence enables fashion brands to optimise their advertising efforts by analysing customer data and behaviour patterns. By leveraging predictive analytics, brands can identify customer segments, understand their preferences, and create highly targeted campaigns. Such campaigns help brands to convey the right message to the right audience and at the right time which enhances the probability of conversion.
No wonder 84% of marketing executives believe that AI-driven campaigns provide better performance and ROI compared to traditional marketing methods, as validated by a study conducted by Statista.
Boost customer service with chatbots and virtual assistants
AI-powered chatbots and virtual assistants are transforming customer service in the fashion industry. These intelligent virtual agents and chatbots can engage in meaningful conversations, provide accurate information, and comprehend customer intent by leveraging Natural Language Processing (NLP) & Machine Learning (ML) algorithms.
Gartner predicts that “by 2027, chatbots will take the role of the primary customer service channel for around 25% of organizations.”
Elevate your brand with strategic social media analysis and influencer marketing
The integration of AI and ML technologies is instrumental in the realm of social media analysis, empowering fashion brands to detect trends, comprehend consumer sentiment, and assess the effectiveness of influencer marketing initiatives. By scrutinising data derived from social media platforms, AI algorithms possess the capability to pinpoint influential individuals and precisely target pertinent audiences.
Influencer Marketing Hub surveyed and found that “93% of marketers believe that AI plays a significant role in shaping the future of influencer marketing.”
Dynamic pricing and personalised promotions
Through dynamic pricing algorithms, prices can be dynamically and automatically tailored in response to real-time factors like demand, competition, and individual customer preferences. Moreover, fashion brands can employ personalised promotions and discounts that resonate with each customer's browsing history. A report by Deloitte says that “companies that use dynamic pricing & customised promotions can achieve up to 10% higher revenues and 5% higher gross margins.”
Popular Fashion Brands Using AI And ML
- Stitch Fix
- Adidas
- Burberry
- Zara
By analysing individual style preferences, feedback, and browsing behaviour, Stitch Fix's algorithms continually improve the accuracy of their selections, leading to higher customer satisfaction and increased retention rates.
Adidas, a renowned sportswear brand, has embraced AI & ML to create innovative and performance-driven products that resonate with their target audience.
Through the use of AI-powered mirrors and RFID tags, Burberry offers customers a personalised in-store experience. The mirrors recognize the products customers bring into the fitting rooms and display complementary items, enabling a seamless and curated shopping journey.
Zara, a fast-fashion retailer, employs AI-powered demand forecasting to optimise its inventory management. By analysing historical sales data, social media trends, and market indicators, Zara can accurately predict demand, minimise stockouts, and reduce excess inventory, leading to improved operational efficiency and profitability.
As the fashion industry evolves in the digital age, the power of Artificial Intelligence and Machine Learning in virtual marketing and advertising becomes undeniable. The fusion of fashion and technology is rewriting the rules, delivering exceptional customer engagement, increased conversion rates, and remarkable business growth. The future holds even more exciting possibilities as AI and ML continue to shape the virtual marketing and advertising landscape, ensuring that fashion remains at the forefront of innovation and creativity.
