5 Areas Where eCommerce Sites Can Gain From Artificial Intelligence(AI)
AI (Artificial Intelligence) is the new human-machine that understands customers better than anyone did before! The aim is nothing less than establishing a bridge between technology and its users by being more human-like. AI is being built to make life and businesses easy and convenient, and;eCommerce is one area that’s already feeling the AI magic!
A report by Boston Consulting Group (BCG) shows those retailers who have implemented personalization strategies, gain almost 6 to 10%; a rate that is two to three times faster than other retailers who haven’t adopted the same strategy.
In fact, AI is predicted to boost profitability rates by almost 59% in the wholesale and retail industries by the year 2035!
Personalization is the key to the enormous popularity of AI amid eCommerce.
AI brings with it versatility, convenience, easier transactions and much more! Amazon is an exemplary example of AI revolutionizing eCommerce. With its brilliant AI-driven support; Amazon has created a competitive advantage in the market based on intelligent personalization and uber-relevant customer service.
In line with the hype, AI has become the newest sales-magnet. One that redefines marketing goals and strategies and frees up manual time and efforts too. Online businesses are forging ahead with confidence in the power of AI!
Let us see 5 areas where eCommerce can gain from Artificial Intelligence!
- Increased Personalization:Gone are the days when the sales person had to personally persuade you to make a purchase. In the online world, AI is the new salesperson, much more empathetic and strategic. AI is intuitive enough to read your mind and deliver what you want within the committed time!It just takes a robotic human-like chatbot to empathetically enquire about your needs and answer all your questions smartly and elegantly, offering equally interesting and varied solutions! The AI presents the right information at the apt stage of the buyer journey to drive the sale forward.AI has enabled eCommerce merchants to know the preferences, likes, and dislikes of customers to serve them exactly with what they need.
- Smart Purchasing:AI helps customers to find what they need, even if they don’t quite know it yet!Smart assessments of the customer’s needs, the best-bundled offerings, and custom price points power a shopping cart that contains everything the customer could need. This pro-activeness enables the customer to make a quick purchase decision. AI has created the era of smart purchasing where the technology drives intuitive purchasing options.
Of course, that’s not the only purchasing where AI can help. Purchase-planning by the business is extremely critical to success in eCommerce. With intelligent systems and machines,they can have enough stocks to dispatch on time, making the necessary goods available to the customers at the right time.AI-enabled demand-forecasting makes purchase-planning for the eCommerce business easier by reliably predicting turnover, seasonal changes, and product trends.
- Enhanced User Experience:AI enables you to know your customers so well that you can tailor not just the products around their preferences, but also the messaging around their thoughts and sentiments. This sends out a clear message that ‘you care while you sell.’Enhanced customer experience is built around effective browsing and searching You should ask the questions, why a customer would prefer my website over others, what it is that can make my customer come back again and again. AI tools can also predict future purchase needs, follow-up and bring them around with the e-mailers and other digital real-time advertising.
- Customer Relationship Management:
A neglected customer may never come back to your eCommerce website. Today, it is tougher than everto create loyal followers and customers, or even retain loyal customers for that matter! AI consumes enormous amounts of data, processes it and analyses it to deliver insights around effective engagement alternatives for the customers that need it. This means knowing which customers to target with such strategies as well as creating effective retention strategies.
- Bigger Sales and Profits:It goes without saying that enhanced customer management, personalized marketing, and better outreach naturally lead to higher sales and profits in the eCommerce business. Convenience and speed matter to most customers. Virtual assistants and chatbots that help customers make the right decisions quickly help deliver exactly that.
AI delivers profits through quick, action-oriented automated that makes customers want to come back and purchase more. In essence, AI saves time and effort for both, the customer as well as the eCommerce merchant.
Other Benefits of AI Technology:
All the elements that contribute to successful eCommerce business are linked and don’t really work in isolation. Along with a personalized online ambiance that enhances the customer relationship, here are some more advantages of AI in eCommerce.
1. Inventory Management:
AI’s predictive analytics helps shop-owners to know the present and future demands of the market and the customers. They can now accurately predict the real-time and future inventory needs and plan to make the goods available on time.
2. Image Classification:
AI is certainly changing the game with its ability to classify, interpret, and understand images. Image classification also gives the advantage of suggesting alternative and similar-looking goods in the form of images to provide customers meaningful options to choose from.
3. Enhanced Security:
Probably one of the most crucial aspects of online shopping is security. While customers and online users are worried about online fraudsters and fake marketers trying to get information; AI is coming to the rescue. AI solutions that detect patterns and learn from credit card transactions can detect advanced cybercrime techniques and also identify fake and genuine reviews.
AI has the potential to drive an enormous impact for the eCommerce industry. Right from personalization, to recommending products, easier customer management, and enhanced user experience, the dynamics of online shopping have changed dramatically. Undoubtedly, the eCommerce brands that embrace AI have an advantage over their competitors in getting ahead of the curve to create that ‘wow’ factor for their customers.