ChatGPT makes global phenomenon
How to use it for your retail store
A US-based AI research and development company Open AI launched an AI chatbot ChatGPT, on last December 1st, and it has become a global phenomenon with its surprising capability in many areas. It not only scored passing or nearly missing in three exams of the United States Medical Licensing Examination but also showed human-like composition and drawing capability based on a large-scaled linguistic database. In response, many schools in the U.S. have blocked ChatGPT in their Wifi network, banned the use of computers during examination and home assignment, and introduced handwritten and verbal tests. In the labor market, the loss of job opportunities is a widely-shared concern. BNB has tested the AI personal assistant ChatGPT for use at beauty supplies.
What is ChatGPT and how does it work?
ChatGPT is an AI-powered chatbot, and it is based on Generative Pre-trained Transformer (GPT) that is designed to provide answers in human-like text. ChatGPT generates answers to your question in real-time based on its great data processing capability. It not only comprehends questions or requests and displays pre-recorded data but also creates its own content. It also remembers the dialogue and learns from it, which is used in answers to follow-up questions.
How can a retail store use ChatGPT?
01. Promotions, announcements, and emails
If a retail store wants to inform a customer about something, ChatGPT can write an email in seconds. It can even generate a store policy, and people with limited marketing or composition skills can easily use it to save time. If a retail store owner is experiencing a language barrier in communicating in English, they can use ChatGPT to communicate with vendors and business partners.
Typed question : “Write a message to customers announcing a 20% off braiding products promotion”
02. Social media
Typed question : “Write an instagram post for a newly released glueless wig by Bobbi Boss.”
03. Common questions a retail owner may have
The current model GPT-3 gives you answers based on databases collected through the year of 2021. Hence, it avoids answering questions about future trends such as “What will be a popular hairdo in the second half of 2023?” ChatGPT’s developer Open AI is already preparing for a release of the even stronger next model.
Typed question : what should a beauty supply sell in the spring?
Skin care: In Spring, skin sheds the dead cells of winter, and it is time to pay more attention to skin. You should sell season-appropriate products like light moisturizer, sunscreens, and mists.
Hair care: In Spring, many people try new hair styles and colors. You should consider stocking up colors, extensions, and styling products for customers looking for a change.
Nail care: As it gets warmer, people are more likely to show off their feet in sandals and slippers. Consider selling vibrant and highlight colors of manicures and pedicure tools, and products.
Fragrance: In Spring, light and fresh scent attracts people. You should consider selling floral and citrus based perfumes.
Makeup: Spring calls for bright and fresh makeup. You should consider stocking items like tinted moisturizers, cream blushers, and lip stains that can help customers to make a moisturized and natural look.
It is important to note that items to sell well in a beauty supply store vary based on location, customer base, and other factors. It should be helpful to conduct market research and find out popular items in your region.
Typed question : how to dispose of old inventory in beauty supplies?
Inventory review: Look for items that are left and find out the pattern. Can you spot a specific category or brand? Does that item off season or off trend? This information can help you make decisions about your inventory management.
Promotion and discount: Another way to get rid of your inventory is providing discount or as gift. You can run a promotion to attract customers or bundle items together with other items from different categories.
Reorganizing shelves: Sometimes items do not sell because they are inefficiently organized. You can place them in an easy-to-spot area or with a display specifically designed to highlight the features.
Return to suppliers: Per the suppliers’ policy, you may return the products and get refund. You can recoup some cost and make space for better selling products.
Donating products: If all other methods fail, you can consider donating your inventory to local charities and organizations. This is a good way to support your community and create space for new products.
Anyhow, it is important to make a data-driven decision based on inventory and sales records and information about how to manage unsold merchandise.
If your beauty supply business runs an online store, ChatGPT offers even more uses. From customer service, to communicating with potential customers, collecting contacts, personalized marketing, maintaining social media accounts, recommending products based on customer’s web activities, answering customer questions, and providing online shopping experience, chatbots can be widely used. A book published recently suggests that the use of chatbots should be limitless:
“1337 Use Cases for ChatGPT & other Chatbots in the AI-Driven Era” written by Senior Landecker Fellow Florin Badita.
05. Human resource
It can not only write a job posting but also suggest an adequate hourly wage based on the individual’s experience. From writing an employment contract for a specific role to drafting an interview questionnaire, it can be a powerful HR tool. It is also excellent in AI data analysis and capable of generating reports and managing human resource records.
Typed question : “Write a job post for an entry-level job for BNB beauty supply, and suggest an hourly wage based on the average beauty supply wage in Atlanta region.
How is it different from Google?
Traditional search engines like Google require you to type keywords to find answers to your question, but you can simply type your questions as if you are talking to a person with a chatbot. Based on the keyword input by various users who want the same result, the collected data quality varies widely. It can also read the numbers and analyze them.
It has only been a month since the release of ChatGPT, but the unexpected popularity and explosive potential caused Google worry, and many tech giants are losing ground. Open AI behind ChatGPT has Elon Musk as its co-founder, and it is expecting additional 10 billions in investment from Microsoft according to a Bloomberg article. Google currently dominates the internet search market with over 90% market share while Microsoft’s Bing only has around 2%. But after Bing incorporated ChatGPT into a new service, the search engine market may shift. Also, Google’s own adoption of AI-powered chatbot for its search engine should be of your interest.
Is ChatGPT free?
ChatGPT was released for free to the public. Currently, you can subscribe to ChatGPT Plus for $20 a month, and the paid service will be provided first-come-first-serve when you register in the waitlist on Open AI website. The premium features include uninterrupted connection during peak hours, faster response time, and priority access to new features and improvements. It will maintain the free plan for a while.
Limits of ChatGPT
ChatGPT avoids answering political or religious questions, and sometimes it gives incorrect or biased information. The current GPT-3 model contains materials through January 2023, and it does not provide information from real-time learning. Also, it shows weakness in predicting future trends. ChatGPT was released to the public for free in order to get user feedback, improve the GPT-3 model, and claim the AI market. Nonetheless, it will not overcome the limits entirely. While ChatGPT implements excellent AI, it itself confesses that it is not perfect.
How to start using ChatGPT
- Google ChatGPT and find Open AI website.
- Click it, and press the Try Chatbot button on the left of the screen.
- Click the Sign Up button, and write down your name, email, and phone number.
- Verify your email address and log in to your account. A chat window should pop up.
- You can type both in English and in Korean in the chat window, and the AI will answer any of your questions.
*Although there is no language setting in ChatGPT, you can simply type in Korean for the AI to answer in Korean. However, it is primarily designed for English users, so it provides faster and more accurate answers to questions in English.