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In an age where personalization is paramount, Marks & Spencer (M&S) is stepping up its game by harnessing the power of artificial intelligence (AI) to redefine the online shopping experience. This innovative approach not only aims to increase online sales but also enhances customer engagement by offering tailored outfit recommendations based on individual body shapes and style preferences. As the retail landscape evolves, M&S’s strategic use of technology highlights a significant shift towards personalized consumer interactions, setting a new standard for the industry.
M&S: Pioneering AI in Retail
Marks & Spencer, a stalwart in the retail sector for over 130 years, has begun to leverage AI technology to create a more personalized shopping experience for its customers. By analyzing shoppers’ body shapes and style preferences, the retailer is able to suggest items that are not only fashionable but also flattering. Stephen Langford, M&S’s director of online, explains that the integration of AI allows the company to customize its communication with shoppers, employing different tones and styles to resonate with various consumer preferences.
For instance, the AI system can differentiate between a shopper looking for emotional, descriptive language and one who prefers straightforward prose. This nuanced approach ensures that customers feel more connected to the brand, ultimately enhancing their online shopping experience. The emphasis on personalization is further exemplified by M&S’s quiz, which allows users to input their size, body shape, and style preferences. Since its launch, over 450,000 shoppers have engaged with this feature, unlocking access to outfit suggestions derived from an extensive database of 40 million options.
The Role of AI-Driven Technology
The AI technology implemented by M&S combines insights from in-house stylists with shopper data to provide tailored recommendations. This symbiotic relationship between AI and human expertise ensures that the suggestions remain relevant and fashionable. Langford noted that while automation of product descriptions has surged to 80% in the last year, human oversight remains crucial to validate the AI’s output.
As M&S aims to strengthen its online presence, the retailer is eyeing a future where half of its fashion sales occur through digital channels by 2028, a significant increase from the current one-third. This ambitious goal is supported by the company’s recent performance, which saw a remarkable 41% increase in profits alongside a 9.4% rise in overall sales, amounting to £13 billion. The surge in online fashion and homeware sales, which rose by 7.8% last financial year, underscores the success of M&S’s digital transformation.
Marketing Strategies and Consumer Engagement
To fuel this growth, Marks & Spencer has ramped up its spending on social media marketing, investing 80% more year-on-year in platforms like Facebook, Instagram, and TikTok. This pivot away from traditional TV advertising reflects a strategic alignment with current consumer behavior, as nearly a third of M&S’s TikTok-generated revenue comes from new customers. The retailer’s focus on engaging with a younger demographic through social media is proving effective, attracting one million additional customers in the last year alone.
Richard Price, M&S’s managing director of clothing and home, expressed confidence in the company’s strategy, stating that M&S has captured the largest share of the womenswear market in nine years, despite facing a challenging retail environment. As the winter party season approaches, the retailer is poised to overtake competitors like Next to become the leading seller of occasion garments, bolstered by its innovative AI-driven approach.
Marks & Spencer’s integration of artificial intelligence into its retail strategy marks a significant milestone in the evolution of online shopping. By personalizing the customer experience and leveraging data-driven insights, M&S is not only enhancing consumer engagement but also setting a precedent for the future of retail. As the company continues to innovate and adapt to changing consumer preferences, its journey serves as an inspiring case study for others in the industry. The successful blend of human expertise and AI technology is paving the way for a new era of shopping, one where every customer feels valued and understood.
Source: The Guardian
