Chatbots, Personalization, Data Analytics – How AI is disrupting Ecommerce
Ecommerce now and the future
Ecommerce has seen a splurge over the past decade. The US market registered an online sale value of $400 billion in 2016 and the same is projected to grow beyond $600 billion by 2020. Turning into an industry vertical by itself, E-commerce players today are on the look out for disruptive technologies that will help them stay ahead of their competition in the market.
How Artificial Intelligence helps in Ecommerce
Artificial Intelligence is NOT the NEXT big thing, it is ALREADY one. Giants like Google, Microsoft have invested heavily in AI in the recent years to enrich the online shopping experience. According to Gartner, customers will manage 85% of their relationship with the enterprise without interacting with a human, by 2020. Many e-commerce giants are leveraging concepts like predictive intelligence and contextual messaging bots to engage the customer and they are already reaping benefits. These Chatbots are just one among several AI and robotics options that are used by online giants to keep their customer engaged.
Solutions using Artificial Intelligence for Ecommerce
Given the clear inclination of the Industry towards AI, it prompts us to ask how it can really transform the user experience to help in increasing the engagement and conversion rate. Here are some of the ways how AI could have an impact is given below.
AI in Personalization
With analytics being a key component in delivering user insights, AI uses the data from analytics to understand and act on the customer behaviour by creating in the moment personalized messages, recommendations based on the user history. This personal touch is a key influencing factor in enabling the customer to make the purchase decision. Imagine the customer seeing the product he wants to buy on the home page of your site without having to type and search for it. This reduces the purchase decision journey and improves conversion rates.
AI in Analytics
With even the minuscule detail of customer behaviour, AI helps E-Commerce vendors in making informed decisions to push the right kind of messages to the prospect. AI has simplified modelling, analysis and helps in reliable decision making to deliver business solutions. Rather than pushing out mass emails, you can customize the messages for the customer automatically based on their behaviour on your website.
AI in Customer Experience enhancement
Customers tend to be loyal to a service provider when they are always in touch. According to a survey, on an average 73% of customers prefer brands which avail good support. Here is where BOTs can help to a greater extent, given its knowledge and understanding of the user’s profile and preferences. The Chatbot’s 24/7 availability and the instant messaging communication channel provides the personal touch to garner engagement. It does not stop with a mere interaction. It goes beyond to understand the customer’s buying preferences and comes up with relevant product information, recommendations that would not only enable conversion of sales and increase in bottom-line but also encourages the customer to stay with the brand for a sustained period.
Summing things up, Usage of AI in E-commerce industry is transforming the way business happens. It won’t just provide ease of shopping, but will also reduce the costs, increase both the top line and bottom line of the organization. But the question here is, are you one of them? If so are you in line with to adopt the changes happening around you?