by Angela Diffly, SMB Retail Technology News
It’s easy for a small business to get lost in the center of the universe. In the big apple, small business is big business – but the competition is as fierce as the fashion. According to New York’s Small Business Development Center, small businesses make up 99 percent of all New York businesses. Getting neighbors to like you, and come back often, is the lifeblood of small retailers everywhere, but New Yorkers are an especially tough crowd. We found one NYC retailer looking to grow exponentially over the next two years – turning to technology to literally lead the way.
Juice and smoothie bar Pure Green is enjoying start-up success in three hot locations, the financial district, in the heart of NYU’s campus and close to The Empire State Building. But the company is on a growth trajectory, planning to open seven more stores by the end of this year, and a target of 30 locations in 2017. Founder and CEO Ross Franklin has a unique background building brand equity for high-end, highly competitive NYC health clubs, spas and wellness brands. So it’s no surprise he’s looking to do the same for his own brand using predictive technologies. “We’re really serious about expanding our brick-and-mortar business, but we’re also very much a tech company,” Franklin told us. “We’re always interested in the most cutting-edge technology. We’re in the process of switching over our point-of-sale systems to Square, because we love the integrated dashboard and the ability to really analyze the metrics over the cloud.”
Franklin understands the value of marketing the right products to the right people at the right time, especially in Manhattan where every enclave has a unique and distinguishable demographic. He’s hoping to achieve the ideal balance with an artificial intelligence (AI) personalization platform called Genie from Grey Jean Technologies. “We are gaining new insights about our current customers, so as we expand, we can identify those areas with the highest concentration of our type of consumer,” Franklin told us. “We’re very optimistic that this platform will help us locate the right brick-and-mortar locations as we grow.”
CEO of Grey Jean Technologies Craig Alberino has a background that traverses big technology and big brands, and is hyper-focused on consumer behavior and loyalty. His fascination with marketing, psychology and systems led him to what’s now the Genie platform. The company’s initial goal was to help brick-and-mortar stores compete with the big online pure-players, like Amazon.com. Alberino wondered, “What if, in real time throughout your daily life, you could interact with retailers and products you love, welcoming messages, getting value from messages, reducing the noise and creating clarity and fidelity from the marketers that want to reach you?”
Alberino told us Genie optimizes the relationship between your product and service and those buying it. The AI-powered engine predicts consumer purchase behavior based on over 500 different data attributes, including transaction history, demographics, location, time, social media activity, preferences and behavior. By learning each customer’s “digital fingerprint”, the company claims Genie can predict their next purchase with 72 percent accuracy at the category level, and the next likely purchase down to the actual product SKU nearly half the time. “With new product purchases, we’re predicting with 25 percent accuracy, which is unheard of,” said Alberino. “If I can get my hands on that kind of information, it adds tremendous value,” added Pure Green’s Franklin.
The Right Pick
Since Pure Green has a full retail model and an abbreviated kiosk model, it’s important to gather insights as they grow to understand which model works best where. “If I know what customers are most likely to purchase next, and I know which location they’re in, I can predict how new locations may perform and which model may be more successful in that area,” Franklin explained. “We see a difference in what’s popular among business areas versus residential areas, so the product mix needs to reflect that. Genie can help us nail down which type of customer is more likely to purchase based on demographics. The more we understand our consumers, the more we can predict which products will be most popular in new areas,” he said. The platform also zooms into Pure Green’s social media followers, to ascertain where the fans are concentrated and what products are resonating with them. The more data the platform receives, the more accurate it becomes.
“Ross (Franklin at Pure Green) is a rock star – he understands his business inside and out, but AI can help him scale better than he can on his own,” commented Alberino. “There’s a precision that comes with it.” Grey Jean is helping Franklin look across his physical properties, along with his distribution networks, to really understand where and how his customers are interacting with the brand in places other than his stores. “For example, what else is in the basket? What does purchase intent look like? What does purchase cadence look like? How do we build loyalty and engagement for him so his consumers become brand passionate and loop others into loyalty? We’re helping him go deeper into those relationships,” Alberino explained.
Grey Jean was recently invited to Walmart to showcase what Genie can do, but the platform was built to super-charge SMB retail businesses. “I was pleasantly surprised; Walmart’s mantra was the customer is number one. Every retailer – from the largest to the smallest – is trying to engage and appreciate customers on a more personal level.”
If personalization is the name of the game, artificial intelligence is the rulebook by which to play it. The Grey Jean name hails from Jean Grey, the superhero X-Men character born with telepathic and telekinetic powers (fitting for an AI platform). “She reads minds and tells the future, and she can influence people. Besides being data geeks, we’re comic book geeks,” admitted Alberino. I wonder if Genie can predict what Grey Jean will do next?
Originally published on SMB Technology News http://www.smbretail.com/artificial-intelligence-fuels-juice-bar-expansion/