Apart from recommending products to the customers based on their purchase and browsing behavior, artificial Intelligence in the e-commerce industry can improve customer experience by providing chatbot services, analyzing comments, and offering personalized services to online shoppers. Nowadays, many e-commerce businesses are using different forms of artificial intelligence technology to better understand their customers, offering them the best user experience, and generating more sales and revenues.
In this article, we will talk about 8 ways artificial intelligence is revolutionizing the e-commerce industry:
A customer-centric approach
It is not unknown that after browsing an e-commerce website for a while, customers abandon their carts and close down the page or the application. This usually happens when a customer is unable to find what he/she is looking for. In this scenario, for example, artificial intelligence can be used to overcome this situation by narrowing, conceptualizing, and finally improving the search results for online shoppers. A rather interesting and complex sub-field of artificial intelligence can be used: machine learning.
By using machine learning, you can dynamically deliver different content based on search results. You can then segment, target, and personalize the customer’s experience to get them to buy. This way, e-commerce businesses can obtain a higher retention rate on their websites and/or applications.
Providing quality customer service in e-commerce is challenging. One way to use artificial intelligence and machine learning technologies is to use chatbots.
Chatbot or bot – is a computer program that simulates a natural human conversation. You can communicate with a chatbot via the chat interface or by voice, just like you would with a real person. The goal is simple: to reach the highest customer satisfaction.
Supply and Demand Prediction
Forecasting has got to be one of the most important aspects of any business. Being able to predict customers’ behaviors will help make better business decisions and improve present and futures strategies. Today, with the tremendous amount of data out there, more and more companies are now turning to machines to analyze these data and find unique insights beyond humans’ capabilities. With artificial intelligence, businesses are almost guaranteed to improve their results when it comes to calculating their customers’ purchase probability.
It has become very easy for shoppers and owners alike to compare prices among competitors with just a few clicks. Therefore, pricing optimization is crucial to any e-commerce business. It is without a surprise that artificial intelligence and machine learning technology is very powerful when it comes to changing the price according to a number of factors at the same time. For instance, the competitor’s prices, the demand, the type of customer as well as the time of the day are all factors that could influence the price. Machine learning makes it possible to automatically adjust the price accordingly.
With the help of Artificial Intelligence, e-commerce platform owners can efficiently suggest the right products to the right audience. By collecting and scanning huge amounts of data to find the right patterns in sales numbers and shopping behavior, brands can successfully give relevant recommendations to their online shoppers which results in an even more personalized experience overall.
Visual search engine
It has been tested and proven that the visual representation of the products is very appealing to shoppers online. They can view the size, dimensions, color of the product before buying it which gives customers almost real-life shopping experience. It also helps customers to easily search and find what they desire within a few clicks.
One of the main goals of Artificial Intelligence in the e-commerce industry is to provide customers with the most interactive solution. For instance, real-time voice assistance to the users enables them to interact easily with the service providers and consequently place orders in a smooth and quick way.
Artificial Intelligence technology brings cost-effective ways to assist businesses in their marketing operations. They can input their marketing strategies and campaigns to Artificial Intelligence platforms like Acquisio with the aim to have a powerful online advertising optimization. Moreover, the use of AI-driven solutions helps in minimizing marketing costs and manage the budget more efficiently and in the most feasible manner.
To conclude, it is without a doubt that Artificial Intelligence has transformed the business models of many small and large businesses. Big companies like Amazon and Google are investing huge amounts of money in Artificial Intelligence ventures, a sign that they will likely become the major theme of future innovations. According to a report by Business Insider, by 2020, 85% of the consumer interaction will be done without the involvement of humans.
Artificial Intelligence allows e-commerce retailers to analyze millions of interactions every minute and ultimately target the customers individually with offers they cannot refuse. The sales teams are now equipped with information that has never been seen before. They can personalize the sales cycle through AI-driven applications that are helping sellers to engage the right prospects with the right message at the right time.