Although the term “data” is diminutive, its value proposition can be a potent force in the realm of retail consumer experience.
And that force, as Sam’s Club is well aware, can not only result in increased operational efficiency but also in real-time insights that facilitate more informed decision-making and, in the end, enhance the customer’s retail experience.
The wholesaler, which is owned by Walmart, is achieving a number of benefits through a data collection system that includes in-store robot-collected data, its app, Own Your Inventory, and nearly 600 AI-powered inventory scan towers developed by the AI firm Brain Corp.
Brain Corp.’s towers are affixed on autonomous cleaning machines that are deployed throughout all Sam’s Clubs in the United States. This is the data collection approach. They are among the 26,000 autonomous robots that Brain Corp. has deployed worldwide.
The towers determine the accuracy of pricing, verify product stock levels, and collect insights on product localization and planogram compliance. Each day, they analyze 18 million images that have been captured.
Sam’s app, which was internally developed, transmits the data captured to in-store associates in real time, enabling them to make more informed decisions and assist store managers in operating their stores more efficiently. This results in a more enjoyable purchasing experience for customers.
The wholesaler’s “member-obsessed” strategy is directly linked to the data strategy, according to Todd Garner, VP of retail product management at Sam’s Club. The company is perpetually utilizing data and member interactions to identify opportunities that will enhance the purchasing experience.
“In the course of our discovery, we realized the ability to quickly find items was a want for members, plus Sam’s Club had an opportunity to improve item location on the sales floor as well as other inventory insights, such as outdated price signs,” Garner stated in an interview via email.
“In order to realize this opportunity, it was necessary to implement a consistent methodology for capturing insights and an intuitive, efficient method for sharing them with colleagues.” The entire club was already covered by our autonomous scrubbers, which were operational on a daily basis. This provided an ideal mechanism for data collection. We opted to enhance our current inventory application in order to provide associates with access to the latest insights, thereby consolidating all essential inventory management activities in a single location.
Sam’s Club conducted an exhaustive investigation of numerous alternative technologies before selecting the autonomous scrubbers, according to Garner. However, Brain Corp. technology emerged victorious.
“The most effective method of data collection was to leverage our existing partnership with Brain, as they had already implemented technology that could be easily modified to accommodate our requirements.” He stated, “We investigated third-party options to facilitate data processing and insights; however, the most precise and pertinent results were obtained by Sam’s Club’s internal computer vision and technology teams. Consequently, we opted for an internal solution for data processing and insight generation.”
“The most efficient and consistent experience was provided by the existing autonomous scrubbers, which ultimately emerged as the optimal solution.” Although we investigated numerous purveyors, Brain’s willingness to collaborate with Sam’s Club and our existing relationship with them rendered them an exceptional partner.
A substantial return on investment
According to Gavin Donley, Brain Corp’s director of marketing, Sam’s Club was the first major retailer to implement inventory scanning robots across all locations nationwide in 2022, and the results have been substantial.
“The field of AI robotics is both in its infancy and establishing itself.” In an email interview, Donley stated that for years, numerous retailers, including Walmart, have implemented autonomous cleaning robots to assist their cleaning teams in enhancing their cleaning capacity and productivity by assuming the time-consuming responsibility of scrubbing the floors of their stores.
“Concurrently, the automation of other retail tasks, particularly inventory scanning, is currently experiencing significant growth.” He stated that manual inventory capturing methods do not provide retailers with an efficient method of consistently and accurately maintaining inventory visibility. However, inventory scanning robots enable retailers to frequently collect inventory data, which augments the labor-intensive and time-consuming aspect of conducting inventory inspections.
Sam’s Club inventory scrubbers have already automated 35% of inventory management duties.
“These robots are able to then share insights with retailers so they can quickly address out-of-stock or low stock levels, items in the wrong location (planogram compliance) and if an item is listed at the wrong price (pricing compliance),” according to Donley.
“The technology approach at Sam’s Club is not only improving the customer experience but also simplifying the job of the store associate,” stated Garner.
“We are a technology-driven company that is led by its employees. Sam’s Club is committed to investing in internal resources to develop and refine the tools that ensure the smooth operation of our clubs and differentiate the Sam’s Club experience.” He stated, “We are of the opinion that the majority of the rest will follow if we provide our members and associates with the appropriate experience.” “This is quantified by the net promoter score from the member’s perspective, and we continue to observe technological advancements.” Our associates are the primary focus of our attention, and we conduct regular pulse checks to ensure that they are satisfied with the individual applications and have the necessary tools to perform their duties effectively.
Garner’s recommendation for retailers contemplating the same data capture methodology is straightforward: Prioritize the experiences of both members and associates.
“Technology has the potential to provide substantial incremental value to members and associates; however, it should not be taken lightly.” He stated that the development of tools must be in a manner that is genuinely beneficial to associates, and that functionality must be designed to provide measurable results. He also emphasized that the delivery of value necessitates a long-term commitment and end-to-end consideration. The retail experience will be significantly differentiated when executed correctly, despite the numerous lessons that will be acquired along the road.
Donley suggests that retailers considering robotics investments should consider automation as a comprehensive company strategy, rather than merely as a solution to a single application.
“By doing so, retailers can identify partners that enable them to choose the best solutions to meet their needs,” according to him. “We are establishing a partner ecosystem around our software platform to assist retailers in customizing their automation strategy to address the issues they are attempting to resolve or the advancements they want to see.” Retailers will be able to select the most effective long-term automation strategy by adopting a comprehensive approach to automation.
Within the retail environment, Donley anticipates that AI will influence the consumer experience at all touchpoints.
The power of AI is in the ability to transform data into actions, and its impact on the customer experience can be as straightforward as ensuring that the appropriate quantity of rotisserie chickens is available on a Tuesday or sending online pickers to the physical store that is best able to fulfill the customer’s order based on its current inventory levels. “The net effect of both is that AI drives customer loyalty, which in turn drives increased sales for retailers,” he stated.