Artificial intelligence (AI) plays an important role in improving customer experience and innovative solutions in the e-commerce industry. Personalized shopping experiences, virtual assistants, product recommendations, chatbots and voice search are among the most unique uses of AI in e-commerce.
The benefits do not stop there. The benefits of having insights from collecting customer data and then breaking it down can be further enhanced by artificial intelligence to tailor online sales services to each customer’s interests and tastes.
However, AI benefits online retailers by providing a superior customer and user experience in e-commerce and by using customer data to make informed business decisions.
In this article, you can learn about the benefits of using artificial intelligence in e-commerce.
The importance of artificial intelligence.
Artificial intelligence permeates every aspect of our lives, it is almost everywhere. According to a published statement, the number of companies promoting AI has increased by 270% in the last four years.
In fact, it is crucial for companies to have an e-commerce solution that can compete with other retail companies. If your ecommerce business can’t sell online, you won’t be able to maximize your revenue. In addition, e-commerce activity has seen a recovery after the pandemic.
Many successful companies have decided to embrace the online market and are looking for opportunities to increase their sales.
Artificial intelligence is becoming an essential part of the business world. Many brick and mortar companies are looking to enter the e-commerce space. It also drives engagement and interaction across digital touchpoints.
So, implementing artificial intelligence on your e-commerce website can increase your sales and improve the efficiency and productivity of your business.
Here are the top 5 benefits of deploying AI in your eCommerce business:
Virtual assistants and voice commerce.
E-commerce virtual assistants (VAs) are chatbots that use language processing and machine learning techniques to understand customer queries and provide needed assistance accordingly.
E-commerce companies prioritize virtual assistants because they are active 24/7 and can easily handle queries.
More importantly, it also increases the scalability of the business. Virtual assistants can perform tasks ranging from researching products to listings and managing inventory. For customers, VA means quick and easy access to information and support.
Voice technology, on the other hand, is not new either. Companies have been using it since the 1960s, but voice commerce has seen significant growth. It is basically a technology that allows users to shop or search with their voice.
Voice commerce is loved by many for its speed and convenience as users can search without having to type anything.
Searchandizing or smart search.
Many customers use the search box to find products on e-commerce sites. In fact, searching for a desired item is the biggest problem.
For many people, they often cannot find what they are looking for, even with relevant keywords.
Smart search is known as “searchandizing”. It’s a combination of sales and research. It combines sales techniques with online research practices.
Searchandizing involves advanced features such as faceted search, navigation, recommended product lists, and more, combined with established search techniques.
However, e-commerce solutions use image annotation to provide a personalized, user-friendly and useful search experience with behavioral data.
A personalization strategy.
Personalization in the e-commerce industry is reshaping the shopping experience based on each customer’s pain points, needs, preferences and tastes. For example, they can run automated personalized email campaigns or create personalized product listings.
So you can also make a personalization strategy by dynamically or proactively presenting content to customers.
Personalization is part of the e-commerce industry before the implementation of AI. Computers can process large amounts of data, allowing for real-time optimization and analysis.
Online stores have hundreds of thousands of products, so they regularly have a large number of customers.
However, software or an algorithm can quickly examine the data and retrieve trends in customer behavior.
With personalized product recommendations, online stores can benefit from customers’ impulse purchase propensity.
You can also cross-sell or up-sell by recommending products to customers at checkout based on their favorite brands and categories.
Online stores are now available 24/7 through multiple channels. This usually requires some form of automation.
By automating customer support, merchants can save time, effort, and operating capital. When it comes to automation for ecommerce business owners, artificial intelligence comes in very handy.
With automation, companies can manage and perform all repetitive tasks and streamline workflows.
Using AI, companies can automate everything from launching new products across multiple channels, synchronizing sales, identifying high-risk transactions, offering discounts to loyal customers, and focusing on more complex requests.
Remarketing to potential customers.
Remarketing is more about reminding the target audience of an e-commerce trademark and its products.
However, the retargeting strategy is designed to attract users who are already your customers. These customers may have purchased from you in the past, or they may have left the purchase journey at some point before completing their purchase.
With the help of AI, companies can identify the behavior pattern of each customer based on sales.
This data can later be used to attract them to your e-commerce site. Push notifications are the most powerful retargeting strategy.
In fact, these notifications are short and simple, so customers are unlikely to get angry. Companies are using artificial intelligence as a cost-effective and useful strategy in their remarketing campaigns.
Remarketing puts your business at the top of your customers’ agenda. So the next time they shop online, your name will be the first person that comes to mind.