September 25, 2023
How the Lexer CDXP Empowers Retailers to Harness the Power of Generative AI
Accelerating generative AI readiness with a CDXP.
Amid the changes brought about by digital transformation, generative AI has emerged as a key development, shaping the future of retail. Beyond simple predictions, this breed of AI allows for the creation of new data that can fundamentally revolutionize customer experience, from personalized product designs to highly individualized marketing campaigns.
However, while the promise of generative AI is tantalizing, its true potential can only be unlocked when powered by the right data. That’s where Lexer’s Customer Data & Experience Platform (CDXP) enters the scene.
1. Single View of the Customer: The Heartbeat of AI-Driven Retailing
One of the biggest challenges for retailers in the AI era is data dispersion. Customer data is typically spread across different touchpoints: e-commerce platforms, POS systems, Marketing Automation platforms and more. This scattering makes it impossible to provide generative AI tools with the complete picture of the customer so you can get valuable outputs.
Lexer's CDXP combats this by amalgamating disparate datasets into a unified view of the customer. This cohesive picture is pivotal for AI readiness, allowing models to ingest a full spectrum of customer interactions and preferences, resulting in smarter and more precise generative outputs.
2. From Raw Data to Structured Intelligence: Setting the Stage for AI
Raw data, while abundant, is like unrefined gold; its true value only surfaces when properly processed. Lexer’s prowess lies in its ability to transform this raw data into structured attributes. With more than 160 customer centric attributes spanning from lifetime value to email engagement, the CDXP ensures that AI tools are fed with enriched and up-to-date data that is ready for decision making.
For internal technical teams this dramatically reduces the complexity of any generative AI project allowing you to focus on the business outcome rather than the data processing.
3. Real-time API Integration: Breathing Life into AI Tools
Generative AI tools are only as good as the data they receive, and in the world of retail, real-time relevance is key. Lexer's APIs ensure that the treasure trove of attributes stored within the CDXP can be availed on demand, enabling AI systems to generate outputs that reflect the current state of consumer engagement and preference.
Beyond the Features: The Underlying AI-Readiness of CDXPs
While the features highlighted are core to Lexer’s proposition, the broader essence of a CDXP inherently bolsters AI readiness:
- Unified Data Governance: A robust CDP ensures consistent data quality, governance, and privacy adherence. AI models built on such data are not just smarter, but also compliant and trustworthy.
- Scalability: The modular nature of CDPs means that as AI models evolve and demand more intricate data inputs, the system can scale without major overhauls.
- Cross-Channel Orchestration: AI’s impact is maximized when its insights are actioned across all customer touchpoints. A CDP ensures seamless orchestration, from online to offline, amplifying the impact of AI-driven initiatives.
Why AI-Readiness is No Longer Optional in Retail
Competitive Strength: In the era of Amazon and digital-first direct-to-consumer brands, personalization is not a luxury; it's a necessity. AI-driven personalization, powered by robust data, can significantly enhance customer loyalty, basket size, and lifetime value, giving retailers a formidable competitive edge.
Risk Mitigation: In a post-pandemic landscape where consumer preferences evolve swiftly and market conditions undergo transformations, AI offers the ability to forecast and adapt. Retailers that aren't AI-ready risk making outdated decisions, resulting in inventory surplus, missed sales opportunities, or a decline in brand value.
Shaping Customer Expectations: Today's consumers don't just desire personalization; they expect it. Generative AI, from personalized product recommendations to virtual try-ons and assistants, will soon become the standard, not the outlier.
The confluence of CDXPs and generative AI stands as a watershed moment in retail's evolution. Lexer is not just preparing retailers to adapt to this new world but to lead it. As the retail landscape continually redefines itself, being AI-ready isn't just about staying relevant, it's about pioneering the future.
Interested in learning more? Book a demo with one of our retail experts today.