How Retail and E-commerce Companies Changing Their Strategies Using AI Tools?
How Retail and E-commerce Companies Changing Their Strategies Using AI Tools?
Spearheading a new future: The many applications of Artificial Intelligence in Retail and E-Commerce
Whether you are a tech-savvy person or not, today, you have to be seated under the rock if you don’t know AI. Artificial Intelligence is a new way to lead a life and commence commercial business practices. There are several applications of artificial intelligence in retail and E-commerce.
In the retail and eCommerce context, AI has already started showing the early signs of innovative strategies. This technology has brought practicality and growth in the retail trade industry – both online and offline.
As per the survey conducted by Tractica, AI is sharpening the edges of eCommerce at lightning speed. Use of Artificial intelligence in retail is expected to generate around $36.8 billion in revenue worldwide by 2025.
Analytics for retail and eCommerce sector is highly useful. It adheres to profit-driven, fast services, and customized products, which are the core elements of retail business success. Thus, today numerous eCommerce companies have been using the eCommerce customer behavior analysis approach to welcome excellence towards their way.
How the use of AI in Retail industry and eCommerce is revamping these sectors?
AI in retail industry and E-commerce has made it possible for online stores to provide 24*7 personal services to their customers. Whenever you open an eCommerce website and are greeting the personalized tour or offering the products you actually want – it is the first step towards retaining the customers.
Keeping the various streams of AI into mind, such as customer behavior analysis, prediction analysis, and so on, retail companies have introduced AI in multiple layers of their operations.
1. Trained Search Engines
Companies like Synctactic.ai are enabling eCommerce search engines to think about the way humans do. It is often seen that customers abandon eCommerce sites because search engines didn’t offer products based on their preferences, styles, and requirements.
To address this issue, customer behavior analytics for retail comes into the picture. Taking the leverage from machine learning, AI-based eCommerce search engines are developed to automatically tag, organize, and visualize content by labeling the products. This way, eCommerce search engines can understand customers’ preferences like a human salesman and provide them with customized services.
Recently, Pinterest has updated its chrome extension, which facilitates users to select an item in any photograph online available and ask Pinterest to search for similar images through the image recognition software. It is an exciting way to understand your customers. And, with AI, you have plenty of different options to understand your customers.
2. Voice Assistants for Shopping
Having an AI shopping assistant is the new growing trend. The statistics presented by Quoracreative showed that by 2020, 50% of searches over the internet are going to be voice-based. And, the intervention of Alexa and Siri has somehow is making it possible. Using analytics for retail, voice assistant shopping experience to the customers can be easily provided.
While shopping, you can make Google’s Alexa and Apple’s Siri your personal shopping assistant. Besides the messenger bots, voice assistants are the new tools allowing users to communicate with web services using only their voice command. Today, it is elementary to use voice commanding technology with smartphones. Thus, if you want to offer a personal assistant to your eCommerce customers, you should work on voice optimization for sure.
3. Sales Demand Forecasting
With the advanced analytics for E-Commerce, you can forecast a shift in the demand for your sales. How?
Retail and eCommerce companies spend half of their monthly budget over marketing. It is relevant to market, but imagine if your marketing forces come into action when they detect potential customers only. This way, you don’t have to continually fund your marketing plan. Moreover, the conversion rate will be on the peak because you are targeting the relevant customers only.
All this is possible with predictive data. When you have data regarding the most popular products, you can divert your marketing forces towards that product. That’s because people want to buy it more and it will automatically boost your sales. Moreover, you will only stock up the products, which are in demand and reduce your operational cost also. Using customer behavior analytics for retail approach, Synctactic.ai has been providing the demand forecasting services to the eCommerce units so that they can generate more profits.
4. Focusing on Potential Customers
Sometimes, pre-qualified potential leads fall through the cracks between the sales team. With the pile of raw data, many retail companies are struggling to detect the potential leads and converting them into sales. But, with the intelligence, you can easily hold tight on your pre-qualified leads.
For example, in retail stores, CCTV cameras are already used to identify shoplifters. However, when AI-based cameras are installed in the physical retail stores, the customers’ behavior analysis can be drawn better. Imagine, if cameras recognize that a particular person is often stand in front of the smartphones section, but never make a purchase. Then, it will showcase that a person is interested in buying the new smartphone, and you can use this data to target your customer.
5. Personalized Experience
E-Commerce platforms are often known for their personalized shopping experience. If you are frequently using Amazon, you will understand what personalized shopping experience means. But, with the intervention of artificial intelligence and machine learning forces, nowadays, a deeper level of customized experience has been provided by the eCommerce stores. Use of AI in retail and E-commerce has enhanced the personalized shopping experience.
AI-based eCommerce platforms have been adopting a multi-channel approach where they analyze how customers behave online on vivid devices. On the mobile apps, websites, or social media campaigns, AI keeps a tab and provides relevant data to the eCommerce owners. Using the eCommerce customer behavior analysis data for different channels, eCommerce can deliver a seamless customer experience to their customers on all the platforms.
Have you ever observed when you search for a particular product on the Amazon website, you will automatically start to receive ads of similar products on your Facebook profile? This is all AI.
6. Better Customer Support
With the whirlpool of advanced technologies, the expectations of the consumer have also drastically changed. Thus, retail and eCommerce sectors are today primarily focusing on providing better customer services. To provide the best quality customer services, you have to navigate through numerous customer touchpoints.
Currently, chatbots are an innovative way in front of the eCommerce companies to stimulate conversation with the customers. Chatbots have been performing some of the vital customer services. It can automatically order processes and evaluate a cost-effective way of providing customer service. On social media platforms, chatbots are being used by numerous companies to provide fast and reliable customer services.
7. Competitive Price
In the over competitive eCommerce and retail industry, new business owners need to offer competitive prices to their customers. To attract new customers, it is crucial to lure them with lucrative prices and discounts.
With the advanced machine learning algorithms, you can consider a myriad of factors after deciding your products’ right price. The right price is something that is lower than your customers, but it won’t put a strain on your business. Moreover, customer behavior analysis is one of the critical parts of the price-determining factor. AI processes all the internal and external factors before compiling a right price.
8. Identifying Fake Reviews
For online retail and eCommerce companies, fake reviews have always been significant trouble. The review is one of the crucial things that a consumer considers before buying anything. When a buyer sees a fake negative review, he or she won’t buy anything from the site.
In the present business world, all the ethical and non-ethical methods are opted by companies to grow. Out of all the non-ethical ways, posting fake negative reviews on your competitors’ website is a popular one. Thus, to weed out all the negative fake reviews, online businesses are using artificial intelligence so that authentic buyers can post the reviews only.
9. Enhancing Store Employees Efficiency
Chatbots like technologies are already enhancing the efficiency of the eCommerce and retail employees. There is a lot of scope under AI technology, which can help retail store employees in numerous ways.
Some technology-aided shopping stores use robotic assistants to greet their customers and guide them around the store. They use relevant product information to guide customers and help employees in managing the inventory. When a machine deals with the customers, your employees can use their spare time to perform other vital tasks like developing new marketing strategies.
AI in Retail and eCommerce
The above mentioned AI use cases in retail and eCommerce companies are clearly showing the power of artificial intelligence. But, it is just a beginning because AI is still developing, and new features are designed every other day. Thus, in the coming days, we will experience more prominent uses of AI in retail and eCommerce.
So, if you are planning to enter into the retail store or eCommerce online business industry, don’t forget to include AI into your business model for your better future. That’s because AI is the future.