Data has become the lifeblood of businesses, and ecommerce is no exception. The ability to collect, analyze, and extract insights from vast amounts of data is essential for driving growth and success in the highly competitive online marketplace. This is where artificial intelligence (AI) comes in, offering a powerful set of tools and techniques to harness the full potential of data in the ecommerce industry. Profits from both direct and indirect use of Al in eCommerce are expected to rise to $59.8 billion by 2025, according to research by Tractica. In this blog, we will explore the top 10 ways AI-driven analytics can benefit your ecommerce business, revolutionizing the way you operate, make decisions, and engage with customers.
Also read: 3 Ways to Future-Proof your eCommerce Business
Top 10 Ways Al-Driven Analytics Can Benefit Your eCommerce Business
1. Voice Commerce and Virtual Assistants
In the realm of online retail, “virtual assistants” utilize machine learning (ML) and language processing technology to interpret customer requests and respond appropriately. Because they are available around the clock and don’t require any training, virtual assistants are a popular choice among online retailers for handling routine customer service tasks. In addition to managing inventory and conducting product research, virtual assistants can perform a wide range of other tasks. Clients see virtual assistants as a simple and efficient way to get answers to their questions.
2. Robust Search Experiences
When visitors enter an online store, their primary objective is usually to find a specific product or item. By locating a search bar, they can directly search for their desired item, indicating a higher level of purchase intent compared to those who are casually browsing. But, even if users are able to locate the desired object through search, there is no guarantee that the search results will meet their expectations or be relevant to their needs.
To address this challenge, the concept of “Searchandising” comes into play. Searchandising combines search functionality with merchandising techniques to enhance the search experience for users. It involves leveraging AI algorithms and data analysis to deliver more accurate and personalized search results. By analyzing user behavior, preferences, and historical data, AI can optimize search results to showcase the most relevant and appealing products to each individual user.
3. Personalization
The term “personalization” refers to the practice of tailoring an online store’s offerings to each customer’s unique wants, needs, likes, and dislikes. In other words, it’s the process of tailoring a customer’s online buying experience based on their past purchases, clicks, actions, and current interests and preferences. Adding a personal touch is a fantastic way to keep customers interested, encourage repeat purchases, and boost conversion rates. Personalization is more vital than ever since more individuals have begun shopping online in the last several years due to the COVID-19 pandemic.
4. Better Customer Service
Modern online shoppers desire a tailored, hassle-free experience. Retailers need more all-encompassing solutions to keep up with customers’ ever-increasing demands, even if voice search and precise recommendations help. The use of chatbots in the e-commerce industry is a prime illustration of how artificial intelligence may be used to solve multiple problems at once. ML is used to automate and fuel these applications. Customers can ask questions and get answers in a way that is similar to a human conversation by using natural language processing (NLP) to translate written or spoken language.
5. Product Recommendations
Online stores cannot thrive without quality content. There are hundreds, if not thousands, of items and customers per day. Consequently, it is much more efficient for a machine (or an algorithm) to analyze the data in real-time and spot the trends in customer behavior than it would be for a team of people to do so manually.
Customers’ propensity to make impulsive purchases can be exploited through the use of AI in eCommerce or tailored product recommendations. At the register, make product recommendations to the consumer based on their past purchases and other behaviors. Or perhaps you could give them special pricing on the products they often buy. In order to increase the average order value, it is helpful to suggest products based on what other customers who share similar tastes have bought.
6. eCommerce Automation
Today’s e-commerce sites must be accessible at all hours and through many interfaces. Businesses in the digital commerce space can save time, effort, and money by automating their customer service operations. Fortunately, AI has shown that it has the potential to greatly aid online enterprises once again. AI plays a crucial role in assisting eCommerce business owners with automation. Growth in the eCommerce sector has coincided with a rise in routine work. These mundane duties are carried out through automation, which streamlines both front- and back-end processes.
Artificial intelligence allows for the automated presentation of new products across many channels, the coordination of sales, the implementation of discounts for loyal clients, the recognition of high-risk transactions, and many other tasks. Additionally, by delegating basic customer service tasks, proprietors of eCommerce businesses are free to focus on more complex inquiries.
7. More Targeted Marketing and Advertising
A major domain where AI is making noticeable strides is targeted marketing. The field of target marketing has grown in scope, effectiveness, and efficiency as technology has joined forces with the practice. Since traditional marketing is ineffective and vague at reaching one’s target demographic, machines have replaced humans as the primary labor force.
8. Remarketing to Potential Prospects
The purpose of remarketing is to bring your brand and its wares back into the minds of your intended audience. A retargeting strategy’s goal is to reconnect with those who have shown interest in your platform before. These customers may have made a previous purchase from your business, or they may have given up on the buying process.
AI can be used to learn the unique habits of each user. You may then utilize this data to get them to return to your shop. Push notifications are a powerful remarketing tool. In addition, you can use the obtained behavioral data to send out tailored push notifications and facilitate direct one-on-one interaction.
9. Dynamic Pricing
AI gives dynamic pricing a leg up since it improves over time at striking a happy medium between profit and customer propensity to buy. Artificial intelligence can determine the best price point or price range by monitoring client behavior and spotting price-relevant patterns in past purchases. The dynamic pricing engine often has two parts: one that calculates the expected effects of a price change and another that optimises the effects of any subsequent price changes.
10. Efficient Sales Process of AI for eCommerce
AI may help your eCommerce business in many useful ways. The best method to accomplish this is to incorporate AI into your CRM. Through the use of Al in eCommerce, you can fine-tune your problem-solving options, craft an effective sales pitch, and expand your client base.
In addition, many AI programs like Siri and Alexa support the acquisition of natural languages and the use of voice commands. They allow a customer relationship management system to respond to inquiries from customers, solve problems, find new leads, and more. Additionally, certain AI-driven CRM systems can handle these jobs simultaneously, saving business owners energy and time. Additionally, an AI-driven CRM system raises conversion rates by making customers happier.
Key Takeaways
AI and ML have already significantly impacted the eCommerce industry, and their influence will only grow in the future. With Salesforce, Adobe, Optimizely, we are already seeing successful implementations of AI in eCommerce. With the help of AI, an eCommerce company can effortlessly sift through the massive amounts of data it receives on a second-by-second basis. Even more so than at present, such technology is essential to the future of online commerce.
With the help of its sophisticated AI-based algorithms, Apexon enables eCommerce firms to provide customers with one-of-a-kind and individualised purchasing experiences. Using the strength of personalisation, you may gain an edge over other online retailers. To see how Apexon’s AI and Digital Commerce services can benefit your business.
