Stay ahead of the game: How AI can help SMB retailers compete

The global artificial intelligence (AI) market is expected to top $300 billion by 2026, with retail and banking expected to be the two major sectors driving growth. With the technology maturing so fast, small and medium retailers should be looking at how they can use AI and automation to get ahead of the game and increase their competitiveness. 

That’s according to Steven Heilbron, CEO of Capital Connect, a fintech company that offers fast and flexible business funding to South African retailers. He says that AI technologies are becoming more accessible to even smaller retailers, thanks to platforms such as ChatGPT, creating opportunities for agile companies to drive productivity and efficiencies in their businesses.

AI refers to computer systems that emulate the problem-solving and decision-making capabilities of the human brain. This includes technologies that emulate the human ability to decode and categorise images, understand written and spoken words, and identify patterns to create predictive models and anticipate behaviour.

We already interact with AI systems in our day-to-day life via virtual assistants such as Siri or Alexa, recommendation engines on platforms like Netflix, and the sophisticated algorithms that ride hailing platforms like Uber use to plot routes. But whereas it used to take deep technical knowledge, months of time and significant expertise to use AI in a business, the technology is becoming accessible to everyone. 

Says Heilbron: “AI is no longer only for corporates and big tech companies that can afford to employ massive teams of cloud engineers and data scientists. We have seen the barriers to entry crumble, with the tools becoming much more user-friendly and affordable. This creates opportunities for SMB retailers to innovate at high speed—enabling them to create better customer experiences and reduce costs.” 

Some of the ways SMB retailers can consider using AI include:

• Personalised recommendations: Retailers can use AI-powered recommendation engines to personalise product recommendations for ecommerce customers based on their purchase history and browsing behaviour. 

• Targeted advertising: An application of AI already common in SMBs is the use of machine learning algorithms on platforms like Google and Facebook. These algorithms automate the purchase and placement of ads and help advertisers to target the right message at the right audience. 

• Creating marketing content: Generative AI tools like ChatGPT can help retailers create engaging social media posts and other marketing content (including text, images, and video) faster. 

Chatbots: AI-powered chatbots on ecommerce sites and social media platforms can help SMB retailers to provide customer support around the clock. Chatbots can answer common customer queries, provide product recommendations, and even handle basic transactions.

• Inventory management: Predictive analytics and forecasting algorithms can help retailers to better understand demand patterns and adjust their inventory accordingly.

• Pricing optimisation: AI can help SMB retailers to optimise their pricing strategies by analysing data on customer behaviour, competitor prices and market trends. 

• Customer sentiment analysis: Retailers can use AI-powered sentiment analysis tools to monitor social media and review sites for customer feedback. 

“Innovative technology and data-driven insights can help retail businesses to grow,” says Heilbron.

“But retailers need quick access to affordable and hassle-free finance to take advantage of the new possibilities to outsmart their competition. With Capital Connect, retailers can apply for opportunity capital of up to R5 million from our app and the funds will be in their bank account within 24 hours or less, so they never miss an opportunity.”

ABOUT CONNECT

The Connect Group of companies provides merchants with financial technology solutions that connect them to cash, capital, card and pre-paid value-added products and services. While our passion is to enable SMEs to grow, our purpose is to connect our clients with opportunities to maximise their business potential with our hassle-free solutions.

The Group’s cash management and payment’s division, Cash Connect, is Africa’s #1 retail fintech cash management provider* and manages in excess of R100 billion a year on behalf of a diverse national client base. It is an approved service provider to blue-chip companies including Spar Group, Shell, Engen, Pick ‘n Pay and OK.

With SME’s at the heart of what we do, Capital Connect -  Retail Business Funder of the Year in the 2021 Fintech Awards -  provides retailers with quick access to business funding in just 24 hours, allowing retail merchants to capitalise on business opportunities.

The Connect Group’s set of solutions also includes Card Connect which specialises in mobile and countertop card acceptance devices for established and informal retail markets; and Kazang Connect that enables merchants by providing prepaid airtime, data, electricity, DStv payments, gaming vouchers, money transfers, over 600 bill payments at till-point and more.

*2022 Africa Excellence Awards (MEA Markets/AI Global Media Ltd)

ABOUT LESAKA TECHNOLOGIES, INC

The Connect Group was acquired by Lesaka Technologies, Inc. in April 2022. Lesaka is a financial technology company that utilizes its proprietary banking and payment technology to deliver on its mission of financial inclusion through the distribution of low-cost financial and value-added services to underserved consumers and merchants in Southern Africa. Lesaka offers banking, lending and insurance solutions to consumers, and cash management solutions, bill payment technology, value-added services, business funding and card acquiring solutions to formal and informal retail merchants.

Lesaka has a primary listing on NASDAQ (NasdaqGS: UEPS) and a secondary listing on the Johannesburg Stock Exchange (JSE: NT1). Visit lesakatech.com for additional information about Lesaka Technologies Inc.

Idea Engineers on behalf of Sumay Dippenaar: Connect Group

Tel: +27 11 010 4300

Email: info@connected.co.za sumayd@connected.co.za   

Web: www.connected.co.za 

Cassien Tribunal Aungane, Editor