EcommerceSolutions
Artificial Intelligence has made huge progress in several industries, out of whicheCommerceandmarketingareone.Technologyhasimpactednotonly the technical side of any business but also the marketing and targeting, logistics,andorderplacing.
It has brought some evolutionary advancements that have changed the eCommerce Industry significantly. According to recent research, approximately 99% of high-growth companies and startups invest in Artificial Intelligence to yield amazing results. Here will discuss how AI solutions have impacted Ecommerce and some important tips to leverage AI for your online store.
AIISBRINGINGAPARADIGMSHIFT
TOTHEECOMMERCEINDUSTRY
Artificial Intelligence is much more than a novel technology known for its “cool factor.” Implementing an Artificial technology-based solution could impact your business functions in a positive way for your Company. To understand this better, it is important to have foundational knowledge about several importantcomponentsofartificialIntelligence.
The Definition of Artificial Intelligence is widespread and consists of important concepts such as machine learning, natural language processing, and data mining. Data mining is the process where both historical and present data are collectedtomakepredictions.
Natural Language Processing(NLP) emphasizes human-computer interactionandhowcomputersprocesshumanlanguage.
AIISBRINGINGAPARADIGMSHIFT
TOTHEECOMMERCEINDUSTRY
Machine Learning encompasses several algorithms applied to the data collected to solve some problems. Another concept called Deep Learning involves several-minute layering algorithms that help to get better insights intothedata. In the last couple of years, AI technology has come a long way and has become one of the most powerful technologies to boost sales and make company operations efficient. Many small-scale and midscale eCommerce companiesareusingAItechnologyindifferentaspects.
BENEFITSOFAIINECOMMERCE COMPANIES
One great example is Amazon. Amazon has benefited a lot from artificial technologies and several other deep technologies. It uses machine learning as an underlying technology to enhance the product selection process and improvise the overall user experience with less turnaround time for product delivery. McKinsey and Company recently published a publication that has shed light on how businesses utilize AI. Some of the benefits of AI in Ecommerce are listedbelow.
ENHANCEMENTOFOVERALL CUSTOMEREXPERIENCE
In recent times, personalization has become a buzzword when it comes to applications and websites. As per the statistics, personalization plays an important role in customer retention. Personalized messages and one-to-one conversationshelpyoutostandoutfromyourcompetitors.
With constant advancements in AI and Machine learning algorithms, it has become possible to design content per the user ’ s interest. Analyzing the large chunk of data related to customer interactions and purchase histories would helpyoutodeliverthemessagesthatcustomerscouldconnectwith.
MAKESTHEMANAGEMENTPROCESS QUITEEASIERWITHAUTOMATION
Implementing Automation would help you to accomplish a task without
Automation can help you to minimize repetitive tasks with the help of AI and give you much time to focus on some important tasks. Further, you can also use AI to automate low-level support, loyalty discounts, product recommendations,etc.
minimalhumanintervention.Yourteammembersdonotneedtospendmuch timeperformingmonotonoustaskslikeschedulingemailsinCRM.
MAKESSALESENDTOENDPROCESS
QUITEEFFICIENT
With the help of AI technology, you can make the funnel more effective for efficientsales.Basedoncustomeractivity,suchasabandonedcarts,youcan create some automated follow-ups with the customers. This will be quite helpfulforthecustomersastheycheckintothesalesfunnel. YoucanleverageChatbotstohelpcustomerswiththeanswerstheywant.
INCREASEDCUSTOMERRETENTION
Delivering what the customers want through personalized messages and advertisements can retain your customers for long. As per the Mckinsey Omnichannel personalization research, there is quite a significant potential of increasingsalesby10-15percentwithomnichannelpersonalizationstrategies.
PREVENTFRAUDANDCYBER ATTACKS
Embedding AI with eCommerce businesses would also help you to avoid threats and frauds happening in recent times for online businesses. A recent studyshowsthattheglobalfraudIndex has reached 45 percent in the recent fewyears. However, with AI and ML, you can do wonders. With the help of Machine learning, you can make some real-time discussions and fix any vulnerabilities in your website without affecting customers. Also, this would help you to preventanyhacks.
AIUSECASESINE-COMMERCE INDUSTRY
SENTIMENTANALYSIS
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AI-enabled digital assistants can help people make grocery lists and order theminminimalsteps.Also,withAI,itisquiteeasytopredictcustomeractivity inadvancebasedontheirpastactivity.InthisSection,wewilldiscusssomeof theimportantusecasesofAIinthecommerceindustry. The
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DEMANDFORECASTING
Demand Forecasting algorithms and models in the eCommerce industry can bequiteusefulasithelpstoaccuratelyandmoreefficientlypredictthefuture demand of the products. This helps you manage the correct inventory stock level of certain products. For demand forecasting, it is important to have the perfect algorithm and historical data to analyze the product’s sales and demand,whichmayfluctuateinthefuture.
One commonly used algorithm is Time Series Prediction, which can predict the data for up to 2 years of future demand. Without utilizing AI technology, it is quite difficult to create a demand forecast system. Many eCommerce solutions now amalgamate AI technology that helps them anticipatethecustomer’sneedsandgetanedgeovertheircompetitors.
AI-BASEDPRODUCT RECOMMENDATIONSYSTEM
If you have used some eCommerce websites, you might have seen a dedicated section mentioning “Products you Might like.” This Section is completely based on the AI-based recommendation model. Based on what customers like and the products they explore, the underlying AI-based Model provides the best product recommendation that could be similar to what the customer wants. This has significantly increased the conversion rate by 90 percentforseveraleCommercewebsites.
CHATBOTSANDVIRTUAL ASSISTANTS
ManywebsiteshavenowintegrateddifferentAI-basedeCommercechatbots, through which many customers have interacted. If your eCommerce website still doesn’t have the chatbot integrated, then there are maximum chances thatyoumaylosesomeofyourcustomers.
To provide day customer support, it is essential to have chatbots that can assist your end consumers anytime. Some of the benefits of integrating chatbotsineCommercewebsitesareasfollows.
Addressthecustomer’srequirementswithcompleteinsights.
Leverage NLP makes chats do voice-based communication with thecustomers.
Abilitytoprovidecustomizedandpersonalizedofferstocustomers.
HOWTOINTEGRATEAIWITHYOUR ECOMMERCEWEBSITE?
Intheabovefewsections,wehaveseenhowAIhasdifferentadvantagesand
use cases in the Ecommerce Industry. Well, now it’s time to leverage the benefitsofAIineCommercetogetsmartertrends.
AI could not only help the eCommerce industry by improvising the customer experience but also by identifying the gaps in management and marketing strategies. With the help of eCommerce Website Development services in the
UK, you can work on integrating AI with the already existing solution or a new solution.
HOWTOINTEGRATEAIWITHYOUR ECOMMERCEWEBSITE?
Integrating AI with e-commerce websites could sometimes be tedious and difficult for business developers. Hence with such companies, you can Fast Tracktheprocessandstayaheadofyourcompetitors.
SomeofthecommontipstoimplementAIintoEcommercearethefollowing.
Create a correct strategy. A strategy would help you to identify the correctpathyouneedtofollowtointegrateAI
Findtheusecasesthatyouwouldliketoincludewithyourtraditional strategies.
Consult with AI-specialized Consultants and third-party expertise. Theexpertswouldhelpyoutobuildtheminimumviableproduct.
Create a full-scale solution. Once you have the MVP, you can take that as an inspiration and build a complete end-to-end solution. This will help you to leverage some of the best benefits of AI in Ecommercefromtheprojectsyoubuild.
CONCLUSION
AI has a greater potential for eCommerce businesses to analyze and study the huge number of interactions daily and try to improve the customer experience. By leveraging AI, the sales team is now much more empowered with information that most of us have never imagined. With the help of AI, it has become quite possible to build a sales cycle through AI-based applicationsandengagewiththerightprospectsattherighttime.
Moreover, AI technology will enormously impact and benefit the eCommerce Industryintheupcomingdecade.Itwillchallengethecurrentwayofdoinge commerce businesses and improve how consumers interact with the eCommerceplatform.
Artificial Intelligence is constantly evolving, and in the era of social media applications like Instagram and Facebook, there is a rapid increase in AI-based platforms that are essential for eCommerce companies.