Best Buy Launches AI-Powered Shipping Tracking

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Brief description of the dive:

Best Buy customers can now access live product delivery tracking and in-home installation services. The new features are made possible by AI technology, the consumer electronics retailer said in a news release Thursday.
Tracking is available for large items like big-screen TVs and refrigerators. On delivery day, when the driver begins their route, the app will use real-time traffic data to provide drivers with views of the delivery route.
When a customer’s home is next on the list for delivery or installation, Best Buy says the tracking map will zoom into a street-level view, providing an up-to-date estimated time of arrival. The app will send a notification just before the driver arrives.

Diving Insight:

Best Buy is among a growing list of retailers — including Amazon and Walmart — that are using AI to improve the customer shopping experience.

“Our new live delivery tracking experience removes the frustration many of us feel when we’re given a window of time to wait at home for an appointment or a larger delivery,” Brian Tilzer, the company’s chief digital, analytics and technology officer, said in a statement. “We know our customers’ time is incredibly valuable, and we’re proud to provide a level of convenience in technology delivery and installation that no one else currently offers.”

Best Buy joins other retailers, such as Target, that are also putting AI technology in the hands of employees to improve customer service or supply chain operations. In April, the company announced a partnership with Google Cloud to launch an AI-powered virtual assistant this summer.

The tool will allow customers to troubleshoot product issues, manage deliveries and manage their Best Buy memberships. AI will also be used to provide customer service agents with real-time recommendations. In May, Best Buy said it was updating its mobile app to offer more personalization, including personalized video content.

And as part of a brand refresh announced in July, the retailer has also been focusing on personalization features. The initiative includes more experiential spaces in the store and a new hologram spokesperson. The company also plans to hire more employees in stores across its computer, appliance and home theater departments.

Consumer electronics sales rose 7.2% in July after months of weakness, the U.S. Commerce Department said Thursday. Best Buy has felt the effects of that weakness. “I think we’re just seeing a little more trade declines, a little more pressured buying and certainly a lot more hunting for value,” Chief Executive Corie Barry said during an investor conference in June.

“So I think we’re still seeing consumers slowly, much slower than any of us expected, stepping back and making very clear decisions based on the value and perceived value of the products that they’re looking for,” Barry said.