The worldwide spending on artificial intelligence reached $12 billion in 2017, an increase of nearly 60% from 2016. This number is expected to reach $57.6 billion in 2021.
Simply put, artificial intelligence is growing, and many e-commerce companies are beginning to see its importance.
There are many reasons for this, which we’ll discuss in this article, including:
- AI can help retailers respond directly to consumers using sophisticated email algorithms and chatbots.
- Using AI for live chat can ease the shopping process for online buyers and give them real-time assistance to boost conversion rates.
- AI can help accelerate your company-wide decision-making with big data analysis and competitor research tools.
Your e-commerce business can capture new customers and increase user engagement and retention with AI.
Here, I present the ways in which your e-commerce company can use AI to capture new business and increase user engagement and retention.
1. Create Customer-Centric Search
AI software can visually search for, organize, and tag content by labeling features of an image or video.
This helps the e-commerce industry because the customer no longer needs to search with a keyword; he can simply look for visually similar products and purchase the desired product.
An example of this is Pinterest’s Chrome extension, which enables users to point at an item in any picture online and then let Pinterest find similar products using image-recognition software.
This software is capable of recognizing visually similar objects, styles, and colors and providing related recommendations.
This AI technology gives a competitive edge to Pinterest and is within reach of all developers or businesses of any size or budget, as it is inexpensive and can be purchased or used on a monthly subscription basis.
AI can learn recognize and learn any concept, whether it’s a logo, product, or aesthetic.
This can be done by training computers to think like a human with the use of neural networks, a series of algorithms modeled to function like a human brain. It recognizes patterns and categorizes and classifies information.
Now, it is easy to browse or search media assets and find matching products using keywords, tags, or visual similarity, such as size, color, shape, or even fabric.
The visual image recognition capabilities of this software are exceptional.
2. Support Real-Life Operations With Virtual Buying Assistants
Virtual buying assistants are no longer in beta mode and are supporting real-life operations in the business world.
A virtual assistant, also known as an AI assistant or digital assistant, is an application program that understands and responds to natural-language voice commands and completes tasks for the user. Virtual assistants can deliver the following services.
Improve Real-Time Customer Service
Customer service can improve when these virtual buying assistants take care of resolving customers' queries and make product suggestions. They anticipate customer needs and trigger sales strategies based on their behavior.
For example, Shoptagr provides online shoppers with a personal shopping assistant powered by AI.
This allows customers to receive immediate help without waiting around for the next available human customer service agent.
Reduce Service Costs
As the responses to customers are automated, the customer care staff can be deployed to superior tasks, and the trivial ground-level service costs are eliminated.
Using virtual assistants instead of lower-level employees, companies benefit because:
- They don’t have to pay virtual assistant-related taxes, insurance, or benefits like they do for employees.
- They save on office space and equipment costs.
- They can offer weekend and evening assistance without worrying about the difficulty and expense of hiring workers for atypical hours.
- Virtual assistants can stay on schedule without distractions that humans are prone to.
3. Accelerate Data Analysis
With ample amount of data collected on e-commerce sites every day, we have a lot to process. AI offers big data analysis and competitor research tools to help and can produce and analyze this large quantity of data quickly.
Big Data Analysis
With big data analysis, decision-making capabilities about sales, marketing tactics, and growth potential have become faster, smarter, and targeted.
Big data analysis tools, which are powered by AI, help you better envision areas that require improvement and growth and provide data to solve the existing problematic areas.
The huge quantity of data at hand generates the possibility of data overwhelm, a concept that indicates the difficulty to process data of large magnitude with available database management tools.
So, instead of dealing with this in a scattered approach, you should focus your strategy on problem areas.
Point out problem areas like how cart abandonment can be improved. Which incentives prove best for converting the new business into loyal customers, such as discount coupons or loyalty points for a free product in the future?
On the basis of analysis of the data, responsiveness can improve. It also lets you calculate accurate ROI and adjust according to it.
AI powers big data tools with leading vendors such as IBM, Oracle, SAS, Microsoft, Dell, Teradata, and SAP. These allow you to compare your business with your competitors.
These analytics can be used to increase market share; 87% of enterprises believe big data analytics will redefine the competitive landscape of their industries within the next three years.
Additionally, it can be used to monitor pricing patterns because frequent analysis of pricing patterns helps you stay competitive.
Use Artificial Intelligence to Benefit Your Business
AI allows businesses to give a more tailored and personalized experience to customers.
E-commerce retailers are now empowered to analyze millions of transactions and data every day, which in turn enables them to improve their operations and make them more user-centric.
There is a lot more that can be done with AI technology, and AI is likely to have an enormous and beneficial impact on the e-commerce world in the coming years.
About the Author
Mukesh Kumar Singh, techpreneur, founder and CEO of Consagous Technologies, is passionate about all the waves in the digital world and believes that the one who innovates is the one who leads. While spearheading an organization with offices in India, USA, and Australia, Mukesh deeply believes in sharing his experiential knowledge and IT marketing acumen gained over a span of 12 years with online readers and takes out time to key-in his thoughts whenever he can.