At the Drapers Future of Fashion conference, VP Tian Su detailed how Zalando leverages AI to improve customer interactions.
- Zalando navigates the challenge of serving 50 million customers across 25 markets by using AI for intuitive feedback and personalised shopping experiences.
- The Zalando Assistant, powered by AI, provides tailored purchase suggestions and allows customers to offer feedback on product recommendations.
- Despite challenges in predicting trends due to erratic weather, Zalando uses its Trend Spotter tool to keep customers informed of the latest fashions.
- Zalando integrates ChatGPT technology to enhance customer engagement while suggesting cost-effective strategies to other retailers.
At the recent conference, Tian Su, Vice President of Personalisation and Recommendation at Zalando, presented their innovative approach to customer engagement using artificial intelligence. She acknowledged the complexities faced by the company in catering to over 50 million customers across 25 markets. However, this vast customer base provides Zalando with the benefit of gathering intuitive feedback to enhance the online shopping experience.
The Zalando Assistant is central to this strategy. Powered by AI, it suggests items to customers and receives immediate feedback through thumbs-up or thumbs-down responses. This interactive system tailors the shopping experience, allowing consumers to explore alternative options if the initial suggestions do not align with their preferences.
Tian Su shared her personal experience with the Zalando Assistant, highlighting its utility in daily decision-making, such as choosing an outfit for the conference. Despite its capabilities, she admitted it cannot yet predict every variable, such as unexpected weather changes. However, the Trend Spotter tool compensates for this by providing weekly updates on emerging fashion trends from six European capitals.
The Trend Spotter analyses data based on product searches, likes, and additions to shopping carts. According to Su, it efficiently forecasts trends with insights like spikes associated with global figures such as Taylor Swift, enhancing their ability to predict popular items.
Su emphasised the importance of leveraging external AI technologies, like ChatGPT, to accelerate adaptation to tech trends without extensive financial investment. This approach not only improves customer engagement but also offers valuable lessons for other fashion retailers.
Zalando’s strategic use of AI showcases the potential of technology in transforming customer engagement within the fashion retail sector.
