When you talk about Artificial Intelligence there are many changes that has been grown and implemented over different platforms and specially over eCommerce platform. The technology has been attracting everyone to get more innovative into the online market. Artificial Intelligence in eCommerce is revolutionizing by shaping the world of online shopping experience by creating new standards.
It is been done to understand the customer by fulfilling their better experience and satisfying expectations through this new eCommerce artificial intelligence techniques. Below you will find now new opportunities to implement on your online business.
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The growth of Artificial Intelligence is currently rising very speedily and this is what creates new eCommerce world to take steps toward future with new technologies. Over more than 72% of the business leaders believes that AI will providing more business advantage in an upcoming future.
It is even predicted that by more than 75% of the developer’s team will include more AI functionality over one or more applications by end of 2018. In 2021 more than 30% of the online store will focus over new techniques on visual search and voice searches. Even CRM activities will boost up the business revenue from the beginning of 2019 and predicted to grow more on 2021 with over $1.1 trillion.
The AI technology will be surpassing the market over more than $100 billion by 2025, some companies have started implement over AI services which will change the phase of customer interactions that will grew more and without humans by 2020.
How will this Influence E-Commerce?
Artificial intelligence is the technology which is highly recommended in current market trends of eCommerce with solutions. It has already started impacting on eCommerce platforms that revolves around the entire sale process in a better way.
Around 27% of consumers worldwide are currently interested on AI based tools. You can say that by 2020 over 80% of entire business will have same sort of systems that will cogitate on implementing automation for serving customers.
The customer will always prefer to have quick resolution and for the same chat bots came up with their presence on web portal, which created a huge difference in market trend over sales. There are around 47% of consumers who would prefer to buy items from a chat bots because of their quick task executing response.
Key Features of Artificial Intelligence in E-commerce
Predictive Sales
The basic theory of AI in eCommerce is that it helps you to understand the customer’s actions and behavior on your online store.
This helps marketer to meet the demands of the customer by real time services and solution over the queries. AI has more compatibility over improvising the user experience for online sellers, it even has the capacity of forecasting with calculating the probability of a customer purchases that will give your online status on the turnovers.
The most important factors which AI focuses are:
- Price optimization
- Up selling and Cross selling
- Lead Scoring
- Managing for performance
Recommendation Engines
When you talk about recommendation engines, it is an online product recommendation engine which is also known as an eCommerce personalization engine that gives product cues to the current searched products. This evaluates with options to pick the right product with a bit different cut, model, pattern, color, shape and sizes from their original choice.
In short you can say that recommendation engine is mostly seen as an intelligent and sophisticated salesman, who knows the taste of the customer and this makes the search engine more intelligent through decisions and recommendations. Artificial Intelligence is an example of searches that a done on glimpse of questions and queries triggered.
Recommendation engines can be seen in many site and apps like Facebook, Netflix, LinkedIn, Amazon, YouTube and many others.
Chatbots
It is a specific computer program which is designed to simulate conversation with human users through internet.
Chatbots takes important responsibilities on an online business to provide customer support services by executing task with automated operations.
The entire process is been responded on the bases of algorithms which are set on the system that answers the triggered questions and queries with best solution.
Benefits of chatbots are:-
- 24×7 availability
- Chatbots are the tools to tackle large number of request
- It helps to know and understand the users nicely
- Low cost effective over maintenance too
- Improves customer support services through analytics and data filtering
- Saves the time a lot
Warehouse Automation
Most of the companies are currently focusing over to managing their warehouse operations, improving efficiency and reducing costs. These automated warehouses are more efficient, flexible, fast and reliable too. They allow to cope up and manage the warehousing goods distribution and, to maintain optimum material flow, with such process it is easy on storage, relocate the goods and retrieve the data automatically. In short you can say that warehouse automation works for a long-term stability with growth.
Types of warehouse automation-
- Goods to person technology
- Autonomous Mobile Robots
- Automated storage and retrieval system (AR/RS)
- Pick to light systems
Virtual Assistant
Virtual assistant is an engineered entity residing in software that connects with interface to communicate human in a human way. It is a process where this software agent performs a tasks or services for an individual. These virtual assistants are mostly known with the name Chatbots which are highly recommended for customer support through online chat.
The virtual assistant has other capabilities too which is expanding rapidly on other phases too through voice user interface. This collaboration with Virtual assistance can boost up your business to the next level. It is said that an extra hand can always be helpful to work with new ideas. Virtual assistants are so skilled that they can work in multiple areas and they can focus on plenty of tasks simultaneously.
Voice Command
Voice command is the ability of a machine that is programmed to identify words and phrases in spoken language and then it converts them to machine readable formats. This software has a limited vocabulary words and phrases, they may only identify only if they are pronounced nicely and spoken very clearly.
This recognition works using algorithms through acoustic and language modeling. Acoustic modeling explains more about the relationship between linguistic units of speech and audio wave signals. The language modeling compares the sounds with the word sequences to rectify the difference between the words and similar sounds. It is very high in demand that there are few names which you can find this voice command assistants around us like Alexa, Siri and other.
Effects of Artificial Intelligence in E-Commerce
Customer Attrition
Artificial intelligence is all about understanding the customer in a way, so that they don’t have to face lot of problems with the services. AI strategies are examples for making a machine learn things to understand the triggered question, so the response is quick and informative to the customer.
An Algorithm is made to filter up the predictions very nicely with precise information and creates a powerful multitasking answering automated machine that is able to answer the queries.
This service has made customer service platform more responsive with accuracy and speed that even humans can’t deliver. In short you can say it’s all about AI machine learning process which improves the interactions between customers with the ability to process, interpret and writing messages. There are some live examples currently like Siri, Cortana, Alexa, Tobi are the best examples of Natural Language processing.
Few points that can help you improvise your eCommerce website through AI:-
1) Collect more information from current customers and previous too
2) Rectify the relationship between know negative triggers and their effects
3) Do understand about fading behaviors on the past
4) Be aware of high risk clusters
5) Define customer behavior pattern
6) Make sure it responds with best solution and suitable products
7) Watch over their frequent preferences and decisions
Reduce the marketing cost
When we talk about Artificial Intelligence the market has their own theory over expenses and spends. If you are developing an online eCommerce store than you will have to focus over high market expenses which can help you grapple over customer services. AI based systems that are working with eCommerce companies with their tools to integrate the power of Artificial intelligence as their marketing strategies.
This will amend over targets and profits with consuming lower budgets and aim over growing more revenue to owners. It will be impacting eCommerce business and the market leaders that are clear because AI is currently aligned to provide better services in the upcoming future.
Market spends mostly over current AI services which are:-
- Programmatic advertising with sharp and smarter solutions
- Smart messenger bots
- Artificial Intelligence base Voice services
- Automated replying and writing bots
- Improving decision through auto generated traffic analysis
Business Leakages
It is one of the most difficult problems while developing a machine learning model and structure. This happens only when you train your algorithms on the data-set module which includes entire information that would be there and available always at the time of predictions, when you apply search over that model the data that you have collected will help you over future problems.
E-commerce business is too conscious about the leakage factor which is a bit consistent and pervasive problem in machine learning on data science. Sometimes it causes a generalization error that makes it useless for any applications.
When you plan to solve the problem over this business analytics professionals and other with knowledge over practical application on machine learning are need to be involved in data science project, so that problem specifications of data can be collected before deploying the project and this process will improve the delivery over value of the business without any business leakages.
Benefits & Real life applications of Artificial Intelligence in E-commerce
Shopping experience
It is a real-time customization which is been done to design the customer’s journey until they checkout. This is the platform which collects and stores lot of information about the users and guides them over the product in a better way. The best thing about AI over online shopping is that they grasp customer’s attention to make them feel the real aura of shopping. Artificial Intelligence has been growing in way that it can create an experience of things which everyone can feel with their soul through online shopping.
Fighting fake reviews
It means when the reviews are made on your eCommerce website it plays an important role on helping people to make purchasing decisions. More than 90% of the people read the online reviews regularly and 80% of the people trust them just as personal connections.
There are few websites who uses AI techniques for the growth of their online eCommerce store and further to analyze the large volumes of users-generated content. They use machine learning algorithms to analyze the reviews across the web and compile the data of those opinions. This is done to make customer see the truth since there are more fake reviews which affect the perception of visitors and customers.
Sales forecasting and inventory management
AI powered software are made to gather the historical data from the past purchase and help the sales department to get an overview on decision making on their upcoming future. The sales forecasting is made to see what went wrong and what best can be done to improve the growth of business.
E-commerce development platforms are made to reach customers easily all across the world and though you can say that every part has to be clear when you are into business. Inventory management is done in way; so that the sales data always complies the stock data to know what best can be done for the customers and visitors.
- Suggesting products is most useful factor for promotions
- Predicting the upcoming events to boost up the sales
- Measuring probability of a purchases with views on your turnover
Automated customer services and chatbots
In the world of eCommerc AI enables personal assistants which are capable of answering simple questions. They are made to give a full customers support in order to perform a mundane tasks in a specific why which makes the searches more effective and descriptive. There are more than 75% of the companies who are using the chatbot services to grow and boost up their online business.
- The response time is been reduced due to prompt reply
- It boost ups the customer retention by sending notifications
- Upselling techniques are used to personalized the approach
Artificial intelligence powered CRM systems
It manages customer relationship which lets the business to reduce the operational cost and optimizes the output with a growing performance, allowing you to focus over the foreground of the business.
This AI based (Customer Relationship Management) system can provide you the insights to serve with best as to maintain the tempo of a relationship.
This techniques and algorithms work on past and current profiles over the AI engines to suggest the best action for the specific customers to make the situation satisfactory and even help over retention.
Voice search and Smart home integration’s
The new world of technology is been growing rapidly with AI over eCommerce and now those steps are way ahead in our life. The AI is been used through voice searches and even now on smart homes too with the help of IoT and other eCommerce integrations.
It is so connected with humans now that they have bought those AI into home applications too. There are few applications which helps you with buying online products too for example Amazon Alexa has techniques to do task which are integrated to the system whether it news or online shopping
Visual Search
E-Commerce has bought many new technologies to start as an experiment on but though they have some unique one too, which are helping clients to find products faster. The first phase was of using chatbots for making textual search more semantic but as the time changed it has been improved with image recognition techniques.
This new AI technology is bought into the world of eCommerce to create more promising outcome over customer attrition and serving with best. You can say that currently there are many websites which has this visual image search techniques implement on their eCommerce platform which helps to find the right product as per their searches.
Areas where Artificial Intelligence is focused on E-Commerce
Digital Marketing Automation
It is powerful automation software that helps to mechanize the marketing process with different tactics. This marketing software can helps you to reduce the repetitive tasks and it is a major function of every business. Companies use this automation to see more web traffic, buyers, retention and loyalty. Automation can streamline this process and you will be able to build personalized one on one connection which will seemingly improve with number of customers.
There are plenty of marketing tools like Marketo, Pardot, Eloqua, Aritic and many other which can change the pace of your online eCommerce store over business.
Salesforce Automation (CRM)
When you talk about salesforce automation it is mostly used by sales team to organize and manage contact to compile the data with opportunities in a single and centralized view. It also focuses over forecasting and generating reports sales management.
CRM is the tool that refers to managing customer interactions throughout the customer’s lifecycle in the process. The main aim is to keep all the data related to customer interactions which are even sharing over every detail from all navigated locations.
Data Analytics
The AI industry has always been leading on the headline for their consistency and good services. It has transformed globally in to companies and racing towards new world of integration emerging technologies. Marketing managers are always using data analytics, benefiting most of the aspects from their fingertips.
Data mining is one to deliver the vast data of quantities that are been divided in patterns to find average, ratios and percentage over aggregated data, so that it can report a result in a better way.
Customer Service
It has made the service interface more intuitive and economical, because AI is the thing which helps to anticipate specific customer needs and tries to make more learning over the contexts, previous chat history and other preferences. AI can compile integrated system data that can capture infinite online information over searches.
- Rectify the customer issues
- Understand customer’s behavior
- Respond with best suitable solution over products
- Try to minimize customer complaints and cart abandonment rates
- Offer real time solution
