The report states that by integrating AI across sales planning, frontline execution and back-end operations, companies can unlock 15 to 20 per cent annualised revenue growth
As artificial intelligence becomes increasingly developed and accessible, a report has stated that companies operating in emerging markets should begin introducing it into their distributed channel models, which could lead to potential sales increases of up to 20 per cent.
Boston Consulting Group (BCG) said in a report that integrating AI into distribution channels leads to more direct retail coverage, greater store conversion, higher-value products sold and an enhanced experience for sales agents.
“As AI capabilities become increasingly advanced and accessible, the upside potential of deploying AI in these complex, distributed channel models is immense. In fact, it is already allowing first-movers to leapfrog the competition, driving potential sales increases of 15 to 20 per cent,” the report pointed out.
AI Adoption In Sales
The report highlighted that five emerging market trends are fuelling the need for AI adoption in sales. These include increasing competitive intensity, limited headroom for reach expansion, the emergence of new retail formats, talent challenges at the front end and in mid-management and rapid AI advancement.
“While most businesses are not yet implementing AI in their go-to-market approach for emerging markets, tools such as AI companions, digital sales agents and many others hold tremendous promise,” the report pointed out.
BCG added that AI can enhance performance management by creating personalised targets, gamified incentives and customised training journeys for individual salespeople. It can act as a personal sales analyst, bringing up potential issues and breaking down performance drivers. The report added that it also has the potential to rapidly hyper-customise sales plans for individual stores based on factors such as their square footage, location, and finances.
On the execution front, the report noted that AI provides business accelerators. For channel partners, it offers earnings optimisers to recommend products and stock levels. For influencers, it offers space configurators to recommend products and create 2D/3D visualisations, quotations and project plans, it explained.
The report also pointed out the challenges faced by the companies in getting value from AI. These include a lack of a clear north star for AI-led transformation, cost pressure and Return on investment (ROI) requirements that limit scaling and data quality and inadequate master data governance.
