Whenever we hear the term “artificial intelligence (AI),” the first thought that springs to mind is a bizarre story technique that is commonly seen in science fiction films and literature. However, in the e-commerce market, AI focuses on the concept of algorithms and learning technologies, which serve as the foundation for automation and much more. In this blog post, we discuss how AI in eCommerce is benefitting eCommerce business owners.
AI enables today’s online merchants to provide an exceptional customer and user experience in e-commerce while also making intelligent business decisions based on consumer data. In this post, we’ve discussed simple yet effective methods e-commerce organizations may employ artificial intelligence in the online purchasing market.
The Rise of AI in E-Commerce
According to Gartner, the number of corporations implementing artificial intelligence has increased by 270% in the previous four years. However, there are many misunderstandings about AI in general.
For example, many people assume that artificial intelligence is a new field of research, despite the reality that it has been around for about 70 years (the term artificial intelligence first came into use in 1956).
Naturally, a lot has changed since 1956. For starters, artificial intelligence is no longer limited to the most powerful enterprises and research organizations. Because of the inexpensive cost (in comparison to many legacy technologies), small and medium-sized businesses have been able to integrate AI into their operations.
As a result, the technology has spread across almost every major business in the world, with hundreds of distinct implementations and application cases. [1]
Benefits of AI in E-Commerce
Let’s discuss how AI can be beneficial for businesses Online.
Virtual Assistants
E-commerce virtual assistants are bots that employ machine learning and natural language processing technology to comprehend customer inquiries and deliver the appropriate help. This is hardly a novel technology, since we are all familiar with Apple’s Siri, Amazon’s Alexa, and Google Assistant by now.
Virtual assistants are preferred by e-commerce organizations because they are available 24 hours a day, seven days a week, and can easily manage simple consumer concerns. VRs may undertake a variety of tasks, ranging from product research to inventory management. Virtual assistants symbolize rapid and simple access to information for clients.
E-Commerce Personalization
E-Commerce Personalization is the process of tailoring the purchasing experience to individual consumers’ needs, pain spots, tastes, and preferences. In other words, it is the technique of actively and dynamically exposing material (whether it be items, brands, or campaigns) to the consumer depending on their purchase history, click-through, browsing behavior, and so on.
Personalization is an excellent technique for engaging customers, encouraging repeat purchases, and increasing conversion rates. And, with more consumers turning to internet purchasing in recent years as a result of COVID-19, developing personalized experiences is more vital than ever.
Smart Search
When visiting an e-commerce website, most visitors go straight to the search bar. As a result, these customers are more likely to convert than those who are just looking. The issue here is that they must locate what they are looking for. However, just because the search results are relevant to the phrases users looked for, it doesn’t guarantee the results are enticing. With Searchandising, AI can substantially aid e-commerce (or Smart Search).
The term “searchandising” refers to the practice of combining “search” and “merchandising,” which blends internet search tactics with merchandising strategies. Searchandising is a method of enhancing traditional search strategies by including sophisticated features such as navigation, faceted search, recommended product listings, autocomplete, relevant queries, recent searches, and more. E-commerce platforms have begun to see the importance of implementing these creative search solutions in order to use behavioral data and provide user-friendly, personalized, and lucrative search experiences.
Retargeting Potential Customers
Retargeting is the practice of reminding your target audience of the presence of your brand and its offerings. The goal of a retargeting strategy is to go out to people who have previously interacted with your platform. These people may have previously purchased from you, or they may have abandoned the buyer’s journey at some time.
You employ AI to detect each user’s behavioral habits. You may then utilize this information to get these customers to return to your shop. Push notifications are one of the most successful remarketing methods. Push notifications are concise and to the point, so there is little risk of upsetting consumers. You may deliver one-on-one communication by using customized push alerts based on the behavioral data you’ve collected.
Effective Sales with CRM
There are several effective methods in which AI can increase your e-commerce sales. Integrating AI into your CRM is an excellent method to do this. You may use AI to change your problem-solving options and generate a strong sales message, as well as gain more consumers. Many AI systems support natural language learning and voice input. They allow a CRM system to respond to consumer queries by answering them, resolving any issues they may have, and even uncovering new prospects. Furthermore, certain AI-driven CRM systems may handle several activities concurrently, saving company owners’ energy and time. Furthermore, an AI-driven CRM system enhances conversion rates by enhancing customer satisfaction.
How are eCommerce Companies using AI in Business?
AI has enhanced the online experience a consumer has when searching for a product, service, or even just information. Businesses have used AI in various ways, some of which are:
Personalized Product Recommendations
Collecting and processing customer data regarding their online purchasing experience is now easier than ever. AI is being utilized to provide customized product suggestions based on prior consumer behavior and lookalike customers.
Machine learning is used to examine your purchase history on websites that propose things you might enjoy based on prior purchases. Machine learning is used by retailers to collect data, evaluate it, and utilize it to provide a tailored experience, launch a content marketing campaign, optimize pricing, and produce consumer insights. For common sorts of applications in e-commerce organizations, machine learning will require less and less input from data scientists over time.
Enhanced Customer Service
You can simulate higher-touch customer service with virtual assistants and Chabot technologies. While these bots aren’t totally self-sufficient, they may help with basic transactions, freeing up real support employees to handle more difficult issues.
Virtual agents also have the benefit of being available 24 hours a day, seven days a week, so low-level concerns and difficulties may be answered at any time of day without having your consumer wait.
Customer Segmentation
Access to more company and customer data, as well as computing capability, enables e-Commerce operators to better understand their consumers and uncover new patterns than ever before.
Smart Logistics
Smart logistics, also known as intelligent logistics, is all about leveraging real-time information from sensors, RFID tags, and other devices to manage inventory and estimate demand. Machine learning systems learn to make better predictions for their supply chain and logistics activities over time.
How Amazon uses AI in E-commerce
Amazon uses AI in two ways which are:
Personalized Product Recommendations
Amazon provides tailored product suggestions as a marketing tactic that allows the corporation to maintain its market share and please customers by precisely predicting their demands through customized product recommendations. Amazon employs item-to-item collaborative filtering to fuel its recommendation system.
Alexa-Enabled Voice Shopping
Amazon says that its voice assistant Alexa enables customers to locate and purchase things, as well as walk through the checkout flow, using voice instructions rather than clicking or tapping a screen. According to Amazon, this allows users to control their checkout experience without having to use their hands.
Overall, this AI application promises to boost convenience for Amazon consumers, from building a shopping list to obtaining Alexa recommendations. This investment in AI allows Amazon to seek to further secure its market position by keeping a competitive advantage in delivering convenience to customers.
AI For eCommerce Content Creation and Scaling
The eCommerce industry is a fast growing industry where business owners constantly struggle with content creation. AI in eCommerce assists in content creation and scaling. Thanks to AI powered content writing assistants, a major chunk of writing redundancy is reduced. AI automated most of the writing operations, so the eCommerce businesses can focus on bringing more value to their online store. WriteMe.Ai is an AI-powered content writing assistant which helps eCommerce businesses and content creators to generate excellent content for landing pages, product pages, blog posts, social media, email campaigns and digital ads in minutes!
Conclusion
AI and machine learning technologies have already had a significant impact on e-commerce and will continue to do so. AI enables an e-commerce company to analyze massive amounts of data every second without breaking a sweat. The demand for such technologies in e-commerce will grow.
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References:
[1] Foundations for Success – TheWellBeingThesis
