AI Shopping Assistant at Macy’s Results in Nearly 400% Higher Customer Spending

(SeaPRwire) –   If you have ever looked in the mirror and questioned what your ensemble needs, Macy’s might have the solution. The retailer has recently introduced its “Ask Macy’s” AI chatbot, driven by Google’s Gemini AI assistant, and it is achieving remarkable results.

The chatbot was rolled out on all of the company’s digital platforms on Monday, but it underwent testing with roughly half of Macy’s website visitors for several weeks prior, the company informed Bloomberg. According to Bloomberg, customers who engage with the chatbot spend approximately 4.75 times more than those who do not.

This early triumph for the bot coincides with Macy’s efforts to stage a recovery following ten years of sales erosion.

Earlier this month, the company disclosed that net sales fell by 2.4% last year, although it saw a return to comparable sales growth, which increased by 1.5%. Macy’s anticipates net sales for this year to be between $21.4 billion and $21.65 billion, slightly below last year’s $21.76 billion, and projects comparable sales to be flat at the midpoint of its guidance.

Chief Customer and Digital Officer Max Magni clarified to Bloomberg that customers might be inclined to spend more when they are searching for a particular item, like an outfit for a specific occasion, as opposed to casual browsing. He also believes the bot is drawing in a more youthful demographic.

The most sought-after functions include the “complete the look” feature, where the bot recommends accessories to complement an outfit, and a virtual try-on tool that lets shoppers visualize how an item would appear on them. Chief Stores Officer Barbie Cameron told Bloomberg that customers can also utilize the virtual try-on feature in physical stores if they are short on time to try items on.

A growing number of AI shopping assistants are emerging as businesses and startups wager on streamlining the online shopping experience. For instance, Phoebe Gates, daughter of Bill Gates, established Phia, a browser add-on that scours the internet for price comparisons.

Furthermore, after over four years in beta testing, Marc Lore and Melissa Bridgeford officially introduced their shopping agent, Wizard, in February.

“Every retailer is attempting to solve this puzzle gradually,” Magni stated to Bloomberg. “This field is wide open. No one has discovered the definitive solution yet.”

Preparing the Macy’s bot for public use required several adjustments, with input from thousands of employees, Magni noted. Initially, the system failed to consider that shoppers in various climates might prefer different product selections.

There were also problems with the bot’s tone, Magni added. When he requested T-shirt ideas for his son, the bot responded impersonally with a list, stating: “Here’s a T-shirt for a 10-year-old.”

Now, the bot’s demeanor is more personable. Upon repeating the request, the bot answered, “‘Ten-year-olds can have so much fun with color – do you want a brighter or more muted color selection?'” Magni explained. “The machine is constantly learning.”