As the festive season approaches, a pivotal moment in the retail landscape arises. With intense competition and increasing customer expectations, retailers in Singapore and beyond look for ways to optimize their operations. According to a recent white paper from DeepL, focusing on language AI could be one of the most effective strategies to enhance productivity and drive revenue during this critical period.
The Singaporean retail sector is preparing for what is often referred to as the “golden quarter,” a time when significant sales activity occurs due to various holidays and shopping events. In light of this, the Monetary Authority of Singapore (MAS) has amended its growth expectations for 2024, which sets a robust backdrop for retail innovation. Major retailers like Lazada, Shopee, Charles & Keith, and Love, Bonito are among those looking to adopt these advancements to stay ahead.
DeepL’s white paper, titled “The Executive Guide to AI-enabled Communication and Global Retail,” outlines how multilingual communication tools driven by AI can reshape retail operations. Among the key advantages highlighted are improved internal and external communication, enhanced workforce productivity, reduced costs, and ultimately, increased revenue.
One of the main insights from the study is that AI can significantly streamline operational processes by facilitating smooth communication between local branches and headquarters. This enhanced communication not only aids workplace efficiency but also contributes to better customer service outcomes. Language AI ensures employee productivity by allowing customer service representatives to operate in their native languages, which is crucial for handling inquiries swiftly and accurately.
David Parry-Jones, Chief Revenue Officer at DeepL, emphasized the importance of language AI in addressing the challenges retailers face, particularly around supply chain disruptions. “The last couple of years have shown the volatility that many retailers face in their operations, and AI can help improve these during the year-end crunch. While language can often be overlooked in this context, being able to communicate efficiently with suppliers globally can help resolve disruptions more quickly,” he stated.
Furthermore, the demand for native language communication is underscored by research indicating that 75% of shoppers prefer to interact in their local language when shopping online. This preference highlights the necessity for effective translation solutions throughout the retail experience.
DeepL’s research also pinpoints the most beneficial use cases for language AI within retail. Among the primary applications are creating multilingual content (46%) and facilitating communication where language proficiency is limited (36%). The areas demanding translation the most include external communications (57%), internal communications (39%), and marketing materials (32%). These tasks cover translating emails, customer support inquiries, and chat interactions, in addition to generating marketing assets and localizing product information.
The impact of AI on retail operations is best illustrated by the success story of Alza, a notable retailer in the region. Jakob Kalina, Head of Localisation at Alza, shared how integrating DeepL’s API has transformed their approach to customer engagement. “The DeepL API has revolutionised how we manage vast amounts of user reviews at Alza. By translating reviews, we have enhanced customer trust in our online shopping experience. The ability to translate hundreds of thousands of reviews from Czech to German and Hungarian has noticeably increased our conversion rates and solidified our competitive edge in the e-commerce market,” he explained.
A Forrester study further emphasizes the economic benefits of implementing DeepL’s solutions, reporting a substantial return on investment. The findings revealed a staggering 345% ROI, alongside a 90% reduction in translation time and a 50% decrease in workload. These metrics make a compelling case for adopting language AI as a means for retailers to boost revenue and scale operations into new markets more efficiently.
In conclusion, as the holiday season approaches, integrating AI into retail operations presents significant opportunities for efficiency enhancements and revenue generation. Given the increase in demand for personalized and localized customer interactions, leveraging language AI offers a competitive advantage. Retailers looking to streamline their operations should consider the transformative potential of Language AI, ensuring they are well-prepared for the bustling festive shopping season ahead.
