The Rising Power of Artificial Intelligence in E-commerce
Artificial Intelligence (AI) is witnessing an exponential rise in the appropriation by various sectors. The technology, almost incognizant, has become a part of our daily lives. From Google search results, Flipkart’s products’ recommendations and Netflix’s film suggestions – several AI-powered tools are seen in our everyday online applications. There’s no denying how Artificial Intelligence (AI) is starting to influence many industries. Whether you have just known about AI or have been monitoring for a while, this significant technological development is here to stay.
Like any other industry, it's starting to shape up e-commerce as well.
Time has got leagues ahead since people were cynical about eCommerce been a thriving business model. With millions of people are making purchases and transactions online, the world is now indeed a global village. Emarketer revealed how the eCommerce has a market share of around $2 trillion presently; it is expected to have a market share of approximately 16% of the global retail sales by 2021 at $4.479 trillion.
Businesses evolve along with the development in the technology. Thus, it is not at all a surprise when we see how artificial intelligence (AI) is bringing its ubiquity felt in the eCommerce sector as well. The Business Insider report shows the industry is expected to have 85% of customer interactions in eCommerce bots by 2020.
As demands continue to grow for online stores, companies need to find new ways to shove the customer experience and provide value for the entire experience. AI is the most significant technological introduction that's altering the landscape for e-commerce and how. This trend towards automation means online retailers can employ data, promote products, and have proper objective towards customer's needs more efficiently.
Did you ever feel like your computer knows you better than you know yourself? How is that machine able to predict what you are looking for! Well, automated personal suggestions becoming more common today as AI technology follows many popular websites. This can be clearer as you surf Amazon’s online shopping marketplace, and you are flooded with personalized recommendations. By using data about your past shopping choices, AI can make smart recommendations about similar products they think might interest you.
Are AI recommendations a big deal, you ask? Studies show how Amazon increased its sales by almost 30% when they introduced tailored content on their homepage. All of us, at some period in our online shopping history, has fallen for a recommended product! Apart from the splurge, it creates a more efficient shopping experience for both the companies and the users.
Traditionally, buyers would have to rely on actual persons in customer support to answer questions about their queries. Chatbots, in the form of AI tech, uses data to explain even the most complex issues. These online assistants can respond to a pool of queries, help with orders, and also book reservations.
Did you know, one of the first companies to take on this technology for their customers is 1-800-flowers, who are a bouquet specialist!
AI technology supports websites functioning at a higher level. In the past, organisations could get away with a site that didn't work 24/7. Today, it's an entirely different story. Customers are tech-dependent more than ever. So, if your website of online retail and are not responsive 24/7, customers are less likely to return to the site.
Disruptions like slow load time, errors, and broken links can result in a customer switching to a competitor. With such a low threshold for slips, finding automated solutions are a safer option for web problems.
With the ever-developing algorithms, AI technology can even help with elaborate marketing campaigns. With so much fight in the digital space, it’s no surprise businesses are looking for unprecedented ways to gain an edge. The latest AI is designed for an all- funnel digital campaign orchestration and can help with everything from testing to media buying. It’s like having the full scope of a marketing team without employing actual human resource.
AI-powered social CRM might soon become the new norm
Television advertising and flyers are a thing of past if you want to mark the vital parts of any marketing technique. Forthwith, social media platforms such as Facebook, Twitter, Instagram, etc. have taken up the marketing share. This is why it has become imperative for companies to enhance their CRM into social CRM.
AI-driven social CRM has already changed and will continue the policy companies interact with customers. The exceptional customer relationship management system can integrate emails, social media conversations, chatbots conversations, as well as other communication in the notes. Such data further aids live customer care agents to determine consumer’s concerns without wasting time. It also betters the sales team to identify cross-selling opportunities.
SCRM permits brands to contemplate the future needs of the customers and thus get a richer insight concerning their thought about the products.
Digital voice assistants like Amazon Alexa, Google Assistant, Cortana, Viv, Apple’s Siri, are voice-activated devices getting popular every day. At present, Alexa is better positioned than other such assistants.
No wonder that customers are using these voice devices for searching and buying items on the internet. The percentage of such buyers is set to grow in from this year and beyond as studies reveal by eCommerce development services.
By 2022, the demand for voice shopping is foreseen to cross the $40 billion mark in the UK and the US (combined). It is thus necessary for e-commerce sites to plan their designing strategy for voice engine optimization (voice search SEO).
AI and ML-powered bots offer complete procedural compliance
To make errors is human, but that has little chance in case of bots. For a live customer service executive, there can be chances to forget the record information. They might, at times, miss reading the disclaimers according to auditing and quality conditions. On the other hand, chatbots are automatically programmed with these rules. Additionally, they offer an auditable trace for the conversation according to the legal terms.
AI and machine learning have revolutionized software solutions to ways beyond what was perceived even a decade ago. Also, bots can manage several customers at the same time, unlike a human representative and have no constraints when it comes to typing speed. A study from Boston Consulting Group found retailers who implemented the ‘smart’ solutions recorded 10 per cent gains in their sales.
Also, bots can manage several customers at the same time, unlike a human representative and have no constraints when it comes to typing speed. A study from Boston Consulting Group found retailers who implemented the ‘smart’ solutions recorded 10 per cent gains in their sales.
The study from Conversica showed two-thirds of companies fail to follow up on inbound sales leads. To resolve this approach, more eCommerce companies are taking the help of AI. It helps them to track consumer behaviour by adopting their in-store practice (for instance, the facial recognition software) and online customers by different offers.
It is making use of Artificial Intelligence in logistics to guarantee a seamless delivery process. Nowadays, even warehousing uses automation and machine learning algorithms to make it automated warehousing operations. Most of the eCommerce giants, such as Alibaba, Amazon, eBay, and others are employing AI to the extent that helps in machine learning and robotics. Speed, efficiency and thus, costs are curtailed to a great extent.
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