Target plans to introduce Store Companion, a generative AI-powered solution, for its store employees nationwide by August. The tool is designed to assist store associates by answering process and procedure-related questions, ultimately supporting store operations.
Store Companion aims to streamline daily tasks, providing instant access to information, which helps employees perform their roles more efficiently. Using AI to manage routine inquiries, associates can then focus on more value-added activities, boosting overall productivity.
Coming to all stores by August
Store Companion is set to deploy across nearly 2,000 Target stores by August. The chatbot will be integrated into store associates’ handheld devices as an app, so that employees have immediate access throughout their shifts.
Nationwide rollout aligns with Target’s stated commitment to leveraging technology to improve store operations and employee satisfaction. An intuitive interface makes it easier for associates to quickly find answers to their questions, reducing downtime and improving overall service quality.
Store Companion’s deployment testing
Before the nationwide rollout, Target is conducting a pilot testing phase, with the chatbot currently being tested at approximately 400 locations. The pilot phase aims to identify and resolve any potential issues for seamless deployment when the tool is launched across all stores. Initial feedback from the pilot stores has been positive, with employees praising the app’s efficiency and ease of use.
How AI is augmenting Target’s shopping experience
Target is also using generative AI to improve its product display pages, aiming to deliver personalized customer search results and detailed product review summaries. AI-driven improvements are designed to improve the online shopping experience by making it easier for customers to find the products they are looking for and understand their features and benefits.
The new guided search feature on Target’s online store broadens the selection of relevant items returned in customer searches, which is expected to be available to all customers later this summer.
Built in-house: Store Companion’s development
The Store Companion chatbot was developed by Target’s in-house technology team in just six months. Rapid development was possible by using frequently asked questions and process-related documents from stores across the U.S.
The team’s deep understanding of store operations let them create a tool that directly addresses the most common queries and challenges faced by store associates. This in-house approach expedited the development process and made sure that the chatbot was tailor-made to meet Target’s specific needs and standards.
Target’s vision for retail innovation
Brett Craig, CIO of Target, pointed out the importance of technology in shaping the future of retail. He believes that embracing advanced technologies like generative AI is key for improving the shopping experience for both team members and guests.
According to Craig, implementing generative AI is accelerating the rate of innovation across Target’s operations.
This forward-thinking approach positions Target to remain highly competitive in the retail industry by continually improving its processes and customer engagement strategies.
Goals of the Store Companion chatbot
Store Companion is designed with the primary goal of easing the workload of frontline associates, helping them work more efficiently, and fostering deeper customer engagement. Through providing instant answers to routine questions, the chatbot lets employees handle tasks more quickly and accurately.
Efficiency here directly translates to more time spent assisting customers, which in turn enriches the overall shopping experience. Store Companion is also a valuable training resource, offering on-the-job learning for new or seasonal employees, supporting daily operations while contributing to the professional development of Target’s workforce.
Target follows Walmart’s AI path
Target’s adoption of generative AI mirrors strategies already successfully implemented by Walmart. Walmart began incorporating generative AI late last year to refine customer searches and equip frontline employees with real-time operational information. This aimed to improve both the customer experience and internal efficiency.
Shortly after deployment, Walmart reported noticeable positive outcomes, particularly in how the technology contextualized and personalized information for customers.
Walmart’s Chief Product Officer, Jon Alferness, highlighted that generative AI greatly improved customer engagement by tailoring responses to individual needs – leading to higher customer satisfaction and more efficient service delivery. There’s clear and proven potential for AI to transform retail operations, offering valuable insights and setting a benchmark for Target as it rolls out its own AI-driven solutions.
How Store Companion supports daily operations
The Store Companion app is designed to streamline daily operations for Target employees by providing instant answers to routine and procedural questions. Examples of common queries addressed by the chatbot include how to sign a guest up for a Target Circle Card and how to restart a cash register during a power outage.
Store Companion reduces the time employees spend searching for information by automating responses to common questions.
Store Companion also acts as an on-the-job training resource, particularly beneficial for new or seasonal employees. It provides immediate access to process guidelines and troubleshooting steps, which helps in accelerating the learning curve and ensuring consistent adherence to store protocols.
Employee feedback on Store Companion
Feedback from employees involved in the pilot testing of Store Companion has been overwhelmingly positive. Jake Seaquist, a store director at one of the pilot locations, reported that team members appreciate the app’s ability to streamline day-to-day tasks. This in turn frees up more time for employees to engage directly with customers, fostering a better shopping experience across the store.
Employees have noted that the quick access to information provided by Store Companion helps them resolve customer issues faster and more accurately. Service quality improvement is a direct result of the reduced need to search for answers or seek managerial assistance, which can often be time-consuming.
The power of AI-driven personalization
Target is leveraging AI to greatly boost sales through personalized promotions. During a May earnings call, Chief Growth Officer Christina Hennington shared insights from a recent partnership that tested personalization strategies in personal care categories.
The results were impressive: personalized promotions led to nearly three times higher conversion rates compared to mass offers. There was also a noticeable increase in sales lift across the entire category.
Tailoring promotions to individual customer preferences and behaviors, Target increased the likelihood of purchases and built up customer satisfaction and loyalty. Ultimately, these results validate the strategic investment in AI technologies, showcasing their potential to drive major growth and competitive advantage in retail.
