Customers play a key role in any type of business as the product’s sales or service depend totally on them. Thus, any industry needs to provide the best services to its customers to fulfil their needs. In addition, various newer technologies are coming up that help the company improve its customer experience.
One such technique is artificial intelligence which allows online retailers to deliver an optimized customer experience. This technique helps collect customer data and enables the company to make crucial business decisions and accurately predict future demands.
How Does AI Transform Ecommerce?
Implementing artificial intelligence in the business positively impacts several business functions across the organization. First, it allows for understanding how the different components of artificial intelligence impact the business.
Artificial intelligence encompasses various processes like data mining, machine learning, natural language learning, etc.
- Data Mining: This refers to the collection of current and historical data for making future predictions.
- Machine Learning: It focuses on providing the interaction between the computer and humans. It allows an understanding of how computers interpret common natural human language.
Machine learning involves the collective use of algorithms on past experiences or providing examples for problem-solving.
Benefits of Using AI in the Ecommerce Industry:
The Ecommerce industry gains several benefits by implementing the use of AI, and these include:
- Virtual Assistants and Voice Commerce: Virtual assistants are bots using language processing and machine learning technologies to understand user queries and provide the necessary support accordingly. These assistants are available 24/7 and can efficiently handle simple customer inquiries. This technology is preferred as it is fast and convenient.
- Ecommerce Personalisation: This allows for modifying the shopping experience based on needs, tastes, pain points, individual preferences, etc. Personalization engages the customer and induces repeat purchases leading to increased conversion rates. The machine learning algorithm can easily use the trend followed by the customer behavior by data analysis and, based on the customer inclination, can provide personalized product recommendations. This can also include providing the customers with discounts based on the brands or categories for enhancing purchases.
- Merchandising (Smart Search): Customers prefer directly heading towards the search option on the website to locate the product of their choice instead of browsing through the list. AI can help in smart searching by merging the online search option with merchandising. In this, it can provide the faceted search, autocomplete, navigation, relevant queries, recommended product list, recent searches, etc., based on customer behavior.
- eCommerce Automation: Automated customer services are available 24/7 on multiple channels, and this leads to saving time, money, and energy. It also reduces repetitive tasks and allows simplification of the workflow. In addition, implementing AI helps in automating most tasks by answering queries, identifying high-risk transactions, providing discounts to loyal customers, etc.
- Retargeting Potential Customers: This involves retargeting previously engaged customers with the platform. This involves the customers that had already made a previous purchase in the past or had abandoned at a certain point of the buyer journey. It provides a push notification to the customers nudging them to make the purchase.
- Efficient Sales Process with CRM: Integrating AI with the CRM system will allow in responding to the questions asked by the customers, fixing the issues, and providing new prospects. It saves time and money by increasing conversion rates and enhancing customer satisfaction.
Powerful AI Applications for Ecommerce Business in 2022 & Beyond
The major Artificial intelligence applications for the eCommerce business that are dominating the industry include:
- Chatbots and Virtual Assistants: These assistants help customers 24/7 in their online shopping to provide a better customer experience. These have natural language processing capabilities that can interpret and respond to voice-based interactions with customers. It can address the needs of the customers through deeper insights. It provides personalized and targeted offers to its customers.
- Intelligent Product Recommendations: One of the major applications of artificial intelligence is that it provides personalized product recommendations to online customers by increasing conversion rates. The AI allows for checking and understanding customer preferences based on their behavior, past shopping experiences, previous purchases, product search history, etc. This leads to returning customers, enhancing customer retention rates, etc.
- Artificial Personalization in eCommerce: AI allows ingathering the specific data from each online user or customer, and machine learning generates the insights for these gathered data. It considers the various touchpoints used by the customers for shopping, including mobile applications, emails, campaigns, websites, etc., to check online interaction.
- Inventory Management: Different technologies like artificial intelligence and machine learning help inefficient inventory management and maintain the right levels of inventory for fulfilling market demands. It also considers not adding idle stock.
Have a project in mind?
Lets talk about it
How to Implement AI in Ecommerce?
There are different steps involved in implementing artificial intelligence in eCommerce. The eCommerce website developers can help implement these in the strategy, and it includes:
- Creating Strategy: It is essential to understand where to start and lay a path to achieve the goal set using artificial intelligence technology. The goal should be actual, and the path should have a practical approach. This will help to build and achieve success down the road.
- Search Relevant Corporate Strategy: The most convenient and successful AI approach is by using the readily available AI model. The main focus should be on revenue-generating opportunities and taking advantage of the available data.
- Leverage Third-Party Expertise: It is better to take the help of expert assistance in implementing the AI technology of eCommerce. It will help build the strategic road map towards achieving the desired goal.
- Build a Full-Scale Solution: It is important to build a full-scale solution for achieving the goal using artificial and machine learning technology.
Bottom Line
Artificial intelligence technology is the newest trend that allows the organization to improve customer experiences, help streamline business processes, enhance conversion rates, and whatnot. This can be done by including these details in the eCommerce website design for setting up the goals.
Considering the various benefits of artificial intelligence and machine learning, eCommerce websites can implement these techniques to provide the best possible shopping experience to their customers. In addition, it allows the organization to make better use of the business and customer data to set up the organization’s plan.
