10 Amazing Ways To Utilize Artificial Intelligence In E-Commerce
In fact, as per a survey carried out by Statista, the global revenue from AI for the year 2018 was around $482 billion & this figure will surpass $3061 billion by 2024.
The above tells you that AI is booming right now. Similar to AI, another field which is on the rise is E-Commerce.
As per the research conducted by Statista, the worldwide retail E-Commerce sales for the year 2018 was around $2.8 trillion, and this figure will reach $4.88 trillion by 2021.
Now, how cool it would be if we can combine both this field, i.e., to Use Of AI In E-Commerce. Many E-Commerce giants are using AI to their advantage. However, you all may be thinking that, why to use Artificial Intelligence For E-Commerce, isn’t it?
“AI IS LIKELY TO BE EITHER THE BEST OR THE WORST THING TO HAPPEN TO HUMANITY.”
– STEPHEN HAWKING
Let me give you some interesting statistics related to Artificial Intelligence In Retail Business which will solve all your doubts.
As per the Ubisend Report :
- ⅕ customers are ready to purchase an item from the chatbot.
- 40% of customers use chatbots to find the best deals.
- Google invested £400 million for acquiring DeepMind.
From the above statistics, you can see the Growth Of Artificial Intelligence In E-Commerce sector. Taking this into consideration, today we’re going to provide with a list of innovative ways to use artificial intelligence in E-Commerce. So, let’s get things moving.
Innovative Ways To Use Artificial Intelligence In E-Commerce
- Predict Sales Or Services
- Provide World-Class Service
- Increase Customer Satisfaction Ratio & Sales
- Scale Personalized Contents
- Optimize Searches & Recommendations
- Automate Back-Office Processes
- Retargeting Potential Customers
- Identify Exceptional Target Prospects
- Create An Efficient Sales Process
- Bridge The Gap Between Personalization & Privacy
1. Predict Sales or Services
If you search on the web about How AI Can Help the E-Commerce sector, then in most search results you will find out that AI can help the online store owners to predict the sales or services.
Instead of working out your way through massive data sets, you can easily find your customer behavior pattern with the practical usage of AI.
The global leader in online media service, Netflix is making the use of AI, and they’re successful in predicting what their customers want to view.
The biggest takeaway that you can take from this point is that, once you can automate the collection & interpretation of information, AI can help you in sales prediction.
2. Provide World-Class Service
If you’re someone who is a part of a WooCommerce Development Company for a long time, then you must have dealt with many E-Commerce projects where the store owners are utilizing Benefits Of Artificial Intelligence In E-Commerce to enhance their customer service.
For providing the world-class service on your online storefront, you can make use of various chatbots which takes its basis on the principles of AI and which will assist your customers 24*7.
The chatbots can help you to save a lot of money by speeding up the response time, freeing up humans from challenging tasks and providing solutions to most of the routine questions.
Chatbots adds a touch of personalization in your online store which creates an opportunity to increase the sales. At the same time, it provides world-class customer services.
3. Increase Customer Satisfaction Ratio & Sales
The Role Of Artificial Intelligence In E-Commerce is not limited to providing world-class customer service. Chatbots based on AI can also help you in improving the customer satisfaction ratio.
The human-style interaction by the chatbots can help you to understand the pain point of customers. Once you’ve identified the pain points, you will work on it to provide the next-level services as per customer’s requirements.
It will lead to higher customer satisfaction ratio which in turn will help you to increase your overall sales by a drastic margin.
For example, The Starbucks’ Chatbot which one can find in the company’s mobile app makes it easier for the customer places the order. It will also tell you the time when your order will be ready and how much you have to pay for that.
Similar to Starbucks, Pizza Hut have launched a Facebook Messenger and Twitter app where they’re making the use of chatbot to track orders. The customers can also reorder their favorite pizza, ask any question and see the latest trends.
4. Scale Personalized Contents
Instead of writing the algorithm or randomly guessing what your customers would like to see, Machine Learning & Artificial Intelligence should be used to provide trending and personalized content.
AI will also assist you to scale up those content according to the customer pain points, brands, channels, countries, etc.
Optimizing the shopping experience is the ultimate aim for all the online store owners. However, few E-Commerce giants can translate this dream into reality. Amazon is one of those rarities who has excelled in this part.
With the rise of the leading AI platforms like Adobe Experience Cloud & Salesforce Einstein, many small and medium scale E-Commerce websites have been able to provide the shopping experience which you generally observe at Amazon.
5. Optimize Searches & Recommendations
Optimizing searches and recommendations is one of the most popular Applications Of Artificial Intelligence In E-Commerce sector.
For implementing this functionality on your online storefront, you should Hire WooCommerce Developer. He/She should be able to guide you on this subject.
Most of the shoppers would search for a particular item on your online storefront, and if they’re not able to find it using natural language, then it will be considered a bad shopping experience.
Nowadays, the traditional search boxes won’t seal the deal for you. You need to optimize your search box and recommendations, and for that purpose, AI comes into the picture.
For example, Go Find invites its users to take a picture and based on that; it will recommend you other products with a price. For this recommendation, they make use of AI.
Amazon Echo Look utilizes a camera combined with Artificial Intelligence to become the assistant that provides you with great suggestions.
6. Automate Back-Office Processes
It is perhaps one of the Best Examples Of using Artificial Intelligence In E-Commerce. The back-office tasks such as manual mapping of products as well as the management of the product data. Functions like these can be time-consuming & error-prone.
To reduce the workload, you should focus on automating these tasks. For that purpose, the role of AI comes into the picture. Most of E-Commerce are making use of Image Recognition technology for product categorization.
However, Pinterest is using this technology to help its users search for a specific item within the photo. By automating the back-office processes, you can reduce your workload and at the same time, can give more time to other complicated tasks.
7. Retargeting Potential Customers
As per the study carried out by Conversica, almost 33% of the marketing leads are not followed up by the sales team. It means that your sales team have missed those persons who can be your potential buyer which affects your sales and revenue.
In addition to all these, there are many E-Commerce businesses which have unmanageable customers data, and due to that, they miss out on lots of great insights.
That’s where AI can come to your rescue, as it will automate the whole sales process and provide you with some customer behavior pattern which you can use to retarget the customers.
Now, the question that would be running through the head is, how AI can help you in retargeting? So, let’s analyze that aspect first. Nowadays many online stores are using facial recognition capture the customer dwell time in the physical stores.
That’s where the role of AI comes into play, as it allows you to predict the products which one could target for particular customers based on their behavior pattern. As you know, the face of sales is changing dynamically & that’s where AI can help you to stand out from the rest.
8. Identify Exceptional Target Prospects
The Predictive Analysis is one of the biggest USPs of Artificial Intelligence which could be utilized to identify excellent target prospects for your E-Commerce business.
Predictive Marketing giant Mintigo provides AI solutions for marketing, sales & CRM systems.
Through Mintigo’s solutions, Getty Images have been able to generate high-quality leads for their business by capturing the data which shows the competitive analysis.
With millions of customer records, Getty Images have decided to integrate AI into their system to find useful patterns and they have reaped rich rewards out of that.
9. Create An Efficient Sales Process
We have moved on from the era of old sales techniques where it was about picking the Yellow Pages and contacting the potential clients through cold calling.
Nowadays, customers get attracted by live visuals which they usually get on various social media platforms.
In today’s market where there is cut-throat competition, you need to have an out-of-the-box sales process for your business. For that purpose, integrating AI into your CRM will be of great help. There are many AI solutions where natural languages and voice inputs are enabled.
Due to this kind of scenario, the CRM software will be able to answer the customer queries and solve their burning problems in a better manner which creates an opportunity for the sales team to grow the business. Some AI-Driven system can even handle more than one task at a given point of time.
The North Face, a large E-Commerce retailer of UK, is utilizing AI to understand their customer behavior.
By using IBM Watson, they help their shoppers to discover the perfect clothes according to their skin color as well as size.
10. Bridge The Gap Between Personalization & Privacy
Whenever we talk about personalization, there is often a trade-off with concern to the privacy of the user. User privacy has been a topic of debate in the last few years.
Many brands are striving for transparency, security, and honesty while interacting with customers. However, while in the race of achieving privacy, they can’t compromise personalization.
Now, the question that gives sleepless nights to the online store owners is how to solve this problem?
The answer is by making effective use of Artificial Intelligence. Users are always willing to their personal information if they’re getting something valuable in return.
For example, Google Now makes use of AI and synchronize the calendar, emails & search habits.
In return, they provide you with a small briefing of what you will get as per the schedule. So, for this kind of scenario, the user doesn’t mind giving access to personal information.
CASE STUDY: AI In E-Commerce
So far, we have analyzed the ten innovative ways to use AI in the E-Commerce industry. In this section, we’re going to provide you with a case study where an E-Commerce giant has made the efficient use of AI, and they’ve also reaped the rewards for that.
The global leader of E-Commerce, Amazon is using Artificial Intelligence to its advantage. Alexa who has become a household name is Amazon’s own AI application. However, Machine Learning algorithms drives most of Amazon’s marketing strategies. These algorithms allow them to predict customer behavior and provide related recommendations.
In addition to this, Automation has also played a considerable role in the evolvement of Amazon after the company acquired warehouse robot manufacturer Kiva Systems which is now known as Amazon Robotics helps them to manage millions of products efficiently.
Another emerging application of the company is Prime Air which is a delivery drone. This application helps the organization to improve delivery efficiency & reduce the shipping cost. It is what Jeff Bezos, CEO Of Amazon, has to say about Prime Air:
“At Amazon, we’ve been engaged in the practical application of machine learning for many years now. Some of this work is highly visible: our autonomous Prime Air delivery drones; the Amazon Go convenience store that uses machine vision to eliminate checkout lines; and Alexa, our cloud-based AI assistant. But much of what we do with machine learning happens beneath the surface. Machine learning drives our algorithms for demand forecasting, product search ranking, product and deals recommendations, merchandising placements, fraud detection, translations, and much more. Though less visible, much of the impact of machine learning will be of this type – quietly but meaningfully improving core operations. ”
Amazon Go is another initiative of the organization where they’re pushing for becoming leaders in the online grocery industry. The company said that for this, they had clubbed deep learning with computer vision and sensor technologies to track everything regarding food market.
Artificial Intelligence (AI) has not been an emerging technology anymore; it has matured a lot, and today, it has become the need of the hour as far as the E-Commerce sector is concerned.
Plenty of IT companies who’re providing WooCommerce Development Services are already offering AI-based solutions.
Taking this into account, here we have tried to provide with a list of 10 innovative ways through which you can integrate the Artificial Intelligence in the E-Commerce sector.
Which of these ways are you utilizing for your online storefront? Do let us know in the comment section. We will try to respond to each of your comments. Thank You.!
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