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5 Ways Retailers Can Maximize Artificial Intelligence for E-commerce

4 minutes read - March 08, 2021 - by Yondu Team
Innovative technologies like artificial intelligence have a significant impact on businesses. Here's how you can maximize AI for eCommerce.

Finding innovative and creative solutions to keep your business more efficient and cost-effective has become even more crucial these days. The good news is that technology solutions, such as artificial intelligence, can help your business achieve just that.

In retail eCommerce, for instance, AI-driven automation can help boost sales and marketing efforts, automate content, and enhance the customer experience. If you’re looking to reap these benefits, here are five ways you can maximize artificial intelligence for your digital store.

What is Artificial Intelligence?

But first, let’s look into the meaning of artificial intelligence.

Artificial intelligence (AI) refers to human intelligence simulation in machines set up to think and act like humans. There are four types of AI: reactive machines, limited memory, the theory of mind, and self-aware.

Reactive machines are the simplest type of AI that perform basic operations but do not store input nor observe learning. Limited memory stores and uses previous data to make better predictions.

In the theory of mind type, AI begins to interact with human thoughts and emotions. Self-driving cars are an example of this type’s early phases.

In the distant future, AI is seen to become self-aware. It has an independent intelligence and human-level consciousness.

What are the Benefits of Artificial Intelligence?

AI can significantly benefit businesses of all sizes across various industries. From enhancing meetings to refining recruitment, AI offers promising potential for addressing business pain points.

For instance, virtual assistants can listen in on your meetings, record crucial highlights, and develop and share actionable notes. Your sales team can benefit from AI analytics, too.

It can be integrated into CRM solutions to generate valuable insights, such as which customers are likely to drive revenue. Such technology can help your salespeople optimize their time and energy.

Additionally, AI can be beneficial for enhancing the product development process. For instance, generative design uses AI to explore possible plans based on your specifications.

How to Use Artificial Intelligence for E-commerce

While AI comes with several benefits for businesses, here are its five practical uses for eCommerce.

1. Chatbots and other digital assistants

Digital stores are up 24×7. It’s no longer surprising why more and more eCommerce retailers use chatbots or virtual assistants to provide support to their customers anytime.

The good news is that chatbots are becoming more intuitive these days, helping boost the customer experience. They improve AI’s eCommerce impact through natural language processing (NLP) that can understand voice-based consumer interaction.

Chatbots also cater to customers’ needs and provide personalized offers using deeper insights. Additionally, their self-learning capabilities allow them to become better over time.

2. Relevant product recommendations

Artificial intelligence in eCommerce uses data petabytes to predict customer behavior and provide relevant recommendations. Interestingly, this practical use of AI benefits eCommerce businesses by boosting conversion rates.

Personalized product recommendations increase conversion rates by a whopping 915%. Customers’ choices are influenced positively by AI’s knowledge of their online browsing habits, searched items, and past purchases.

Apart from product recommendations, AI can personalize business email campaigns and the customers’ shopping experience using these data. As a result, you can gain more returning customers, better retention rates, and increased sales.

3. Personalization across multiple devices

Artificial intelligence also helps to bring a personalized experience across different devices. AI engines like BoomTrain sit on various touchpoints to study shoppers’ online interactions.

The engine’s algorithms monitor all devices and platforms, from a mobile app to an email campaign, to build a comprehensive consumer view. In effect, eCommerce retailers can offer much-improved customer service.

This AI-driven personalization enhances the customer experience based on hundreds of data points. It provides the right content to the right person using the right channel at the right time.

4. Inventory management

Among the incredible benefits of artificial intelligence for eCommerce is efficient inventory management. AI also helps retailers maintain the right inventory level to meet the market demand.

AI-enabled inventory management helps businesses maintain stocks according to previous sales trends and anticipated demand changes. It also considers possible supply-related concerns that could affect inventory levels.

Aside from inventory, AI also helps optimize warehouse management with automated robots that can store or retrieve stocks 24×7. They can even dispatch items instantly after an online order.

5. Fake reviews

Statistics show that 56% of consumers read at least four product reviews before making a purchase. It makes perfect sense why retailers give importance to customer feedback.

But the thing is, some competitor brands publish fake reviews, which can hurt your online business. Thankfully, AI technology can help you combat this and guide purchasers with genuine brand and product feedback.

Self-learning AI uses language processing methods to identify unusual writing styles, formatting, and text patterns. It also compares product reviews to industry standards and competitors and disregards suspicious ones in measuring sentiment analysis.

Artificial intelligence offers several incredible benefits for the eCommerce industry that other technologies may not provide. This undoubtedly will give your business an advantage, especially these days when more and more enterprises are going digital.

AI allows you to analyze customer interactions daily to provide the right campaigns to the right people at the right time. By leveraging the benefits of AI technology, you can take your eCommerce business to a whole new level.

Are you looking to drive your business’ digital acceleration through eCommerce? Head over to our website to explore our eCommerce solutions.