Ways in which Artificial Intelligence is impacting Ecommerce business
Whether it is for improving the customer’s online retail experience or fighting online fraud, Ecommerce retailers are growing to be more reliant on the current technologies to meet their present challenges. Since its inception in the 1970s, Artificial intelligence (or AI) and machine learning have been increasingly shaping the way humans interact with computer
Cut to the year 2018 and we find AI playing a critical role in Ecommerce retail in different avenues including providing a personal online experience and support for online shoppers. A Gartner report predicts that around 85% of all online customer inte ractions will be managed by AI by the year 2020. According to a research report published by HubSpot , over 70% of online users are using AI-based chatbots to resolve their queries and issues, while 38% of surveyed users are positive about their chatbot experience (according
This article discusses how AI technology is transforming various areas of Ecommerce retail.
Customer service using chatbots
AI-based personal assistants or chatbots are being increasingly deployed by Ecommerce retailers to create a personal touch with online shoppers. Apart from answering common queries, chatbots offer a cost-effective mode of providing customer service, saving around $1.3 trillion (or 265 billion customer calls) each year for the Ecommerc e industry . Advanced chatbots such as ShopBot from eBay can even help you find a gift within your budget or locate a product (based on an uploaded image).
Improved search results
Disappointed with the product lists that showed up for your Ecommerce retail search? As with any other online shopper, you are not alone. AI-based tools is using natural language processing (or NLP) to improve search results for online shoppers. Technology start-up, Clarifai is improving the visual aspects of search by including image and video recognition. Using AI, shoppers can easily find similar (or same) items as an uploaded product image.
Fake review management According to a survey conducted by Dimensional Research, around 90% of online buying decisions are influenced by both positive and negative online reviews posted by other users
Personalized customer experience Based on individual customer-related information such as product preferences, purchase or browsing history, and even external third-party data of the individual, Ecommerce retailers are using AI to create a more personalized experience for each customer.
A study revealed that around 50% of sales and ma rketing budgets are wasted on sales le ads , who are never contacted or followed up by the sales teams.
Improved Sales process
Summary AI technologies are increasingly becoming crucial for the success of Ecommerce players. By analyzing millions of online interactions, AI is making it possible for Ecommerce retailers to provide a personalized shopping experience for each of their customers. By touching key business touchpoints such as customer retention, sales and marketing, and customer service, artificial intelligence is transforming the way we buy or sell products online.
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