Background
A leading software provider for cannabis dispensaries across the United States aimed to drive sales and improve customer engagement through AI-powered solutions. The company helps dispensaries navigate the challenges of compliance, inventory management, and customer engagement. Their platform offers a comprehensive suite of tools, including point-of-sale systems, online ordering, and analytics, designed to streamline operations and enhance the customer experience.
Challenges
The client recognized the potential of AI to improve the cannabis retail experience for both dispensaries and their customers. The company planned to use its extensive product, user, and transaction data to create innovative solutions that would:
- Enhance the customer experience: The business aimed to personalize the online ordering experience and help customers discover new products, mirroring the sophisticated recommendation engines seen in mainstream e-commerce.
- Optimize dispensary operations: Dispensaries needed a way to accurately predict product demand to prevent stockouts, minimize waste due to expired products, and streamline inventory management.
- Drive sales and revenue: The client wanted to implement tools that would increase average transaction size and boost sales while also improving customer satisfaction and loyalty.
- Maintain a competitive edge: The company recognized the need to differentiate its platform with AI integration and innovative solutions.
What We Offered
Zazmic was tasked with developing and deploying multimodal AI models that could analyze the client’s data and provide actionable insights to improve business operations and customer satisfaction. Zazmic designed and implemented two core AI solutions, leveraging Google Cloud’s Vertex AI platform.
AI Recommendation Engine
- This system uses a hybrid approach combining collaborative filtering and content-based filtering techniques to provide personalized product suggestions.
- Collaborative filtering analyzes historical purchase patterns to identify similar users and recommends products that they have purchased or rated highly. Content-based filtering leverages product attributes (e.g., strain, potency, flavor) to suggest similar products based on user preferences.
- The solution is built on Google Cloud’s Vertex AI platform, which provides a managed environment for training and deploying machine learning models.
Predictive Inventory Management
- This solution employs a time series forecasting model to predict product demand based on historical sales data, seasonality, and other relevant factors.
- The model is trained using Google Cloud’s AutoML Tables, which automates the process of feature engineering and model selection.
- The solution integrates with the client’s inventory management system to trigger automatic restocking orders when inventory levels fall below predefined thresholds.
Results
By implementing Zazmic’s AI-powered solutions, the company and its clients can expect to see significant improvements across various areas, including:
Increased Average Transaction Value
Personalized recommendations encourage customers to explore new products and add more items to their cart, resulting in higher order values.
Improved Customer Satisfaction and Loyalty
Tailored recommendations create a more engaging and satisfying shopping experience, fostering customer loyalty and repeat business.
Optimized Inventory Management
Accurate demand forecasting minimizes stockouts and reduces waste, leading to increased efficiency and profitability for dispensaries.
Data-Driven Insights
The AI models provide valuable data on customer preferences and product trends, empowering dispensaries to make informed business decisions.
Enhanced Competitive Advantage
The company can attract and retain dispensaries by offering an AI-based e-commerce platform that drives sales, optimizes operations, and delivers a superior customer experience.
Elevate your business with the power of AI!
Zazmic’s expertise in AI/ML and Google Cloud technologies can help your organization unlock valuable insights from your data and drive meaningful business outcomes. Contact us today to explore how we can collaborate and develop solutions tailored to your unique needs.
