When we hear the words Artificial Intelligence and Machine Learning (AI/ML), the first thing that comes to mind are movies like The Terminator and The Matrix. But within the E-Commerce sector, it is more about collecting data and feeding the algorithms.
AI/ML has shown its worth in almost every sector and E-Commerce is no exception.
If you are one of those who own an E-Commerce platform or are about to launch one and wondering what the role of artificial intelligence in E-Commerce is, this article is for you.
1. Targeted Marketing
One virtue of an E-Commerce platform is that it generates a lot of data. The good thing: this data can provide you with meaningful insights if analyzed properly. From the point users enter your website to the time they leave, there are tools that capture their every activity.
You can get information like-
- The source from where the users entered your website
- All the places they clicked
- How much time do they spend in which area
- Their navigation activity
- The page from where they exited
And this is just the tip of the iceberg. There is a lot more information that the website gathers about user activity.
For any business to be successful, it is essential that its marketing activities be on-point. This data that your website collects is a goldmine. But how can you use it effectively?
The best thing about AI/ML is that it allows you to do that!
You can launch and manage efficient marketing campaigns with actionable insights and real-time data. Since the latest machine learning technologies use data analysis, you obtain useful information on client purchasing trends and preferences across various groups of people.
You can quickly determine your target demographic and arrange your marketing strategy appropriately to achieve the best results. Information like customer reviews, purchasing history, website usage, etc., could be relevant to tweak ML algorithms to give the best result.
2. Entering New Markets
AI development services support E-Commerce organizations in developing consumer profiles and doing thorough market research. In several ways, you can find and analyze new markets for the purpose of expanding your company.
E-Commerce businesses require constant monitoring to capitalize on new possibilities, and both AI and ML technologies help you achieve this goal successfully. As a consequence, you may increase income and sales while expanding the scale of your E-Commerce business over time.
3. Improved Product Recommendation
If you want to stand out from the crowd, it is best to give your users an experience that would make them feel like you know them. And you can achieve that with personalization.
How do you give a personalized experience to users? You guessed it right! With the help of a machine learning service provider.
It is now very simple to collect and process customer data about their online purchase experience. Imagine if you could use this data to find out which products your users are the most interested in. Instead of throwing random recommendations, you can suggest products they would actually buy. Depending on their spending power, you can offer personalized discounts.
You can use machine learning to examine the purchase history of your users based on prior purchases. Then you can use it to collect data, evaluate it, and utilize it to provide a tailored experience. Not only that, you can launch a marketing campaign (as discussed in the first point), optimize pricing, and gather consumer insights.
All these activities will lead to a result that forms the backbone of any business- customer retention.
4. Increased Customer Retention
Clearly, customer retention is more profitable than customer acquisition. And the points mentioned above will help you do that. Apart from that, sending customers personalized offers and push notifications will end up increasing the customer retention rate. All this with the help of machine learning solutions development.
There is another benefit apart from this. A study has revealed that regular customers are more likely to try a new product as compared to new customers. That’s because old customers already trust the platform and the products it offers. So a high customer retention rate means more people will try new products.
5. Save Time and Money with Automation
There is no doubt about the fact that automation makes life a lot easier. It reduces the time taken to do certain tasks, especially repeated ones, and improves speed and accuracy by eliminating human intervention.
It also saves costs as you don’t have to employ people to perform tasks which can be done by automation. With this, custom machine learning solutions can help you take your E-Commerce business to the next level with limited resources.
6. Reduced Cart Abandonment Rate
Cart abandonment is every E-Commerce platform owner’s nightmare. And rightly so, since it averages around 69.57%.
There are many reasons for users to abandon the buying process which may or may not be related to your website. But that doesn’t mean you cannot do anything about it.
In case users ditch the cart due to reasons like unexpected shipping charges, complicated checkout processes, payment issues, or any other technical glitches, AI/ML can come to your rescue.
AI/ML studies and analyzes data pertaining to customer activity and behavior and identifies where they might abandon the cart. Accordingly, you can find out ways to engage the customer and complete the shopping process.
For example, if the customer abandoned the cart because of high shipping charges, you can send an email with a discount voucher or offer free shipping. You can hire machine learning developers to do that for you.
Similarly, if the customer leaves your site due to some reason not related to any technical issue (maybe they received a phone call and forgot about the shopping), you can retarget those customers by sending an email or by displaying personalized ads. These methods will remind users about your brand and will prompt them to complete the checkout process.
Again, you can only do this if you know why users leave the cart halfway, and AI/ML helps you identify the reasons.
7. High Optimization
Optimization is the key to business growth, Be it process optimization or price optimization. And machine learning consulting services can help you with both.
By bringing automation, AI technologies help you streamline ordering and delivery operations. You can also use AI/ML to optimize warehouse and inventory-related procedures. That makes it easier to manage the supply chain. There will be fewer human errors with automated processes, and your consumers will have a more enjoyable experience.
Similarly, dynamic pricing, with the help of AI, changes the price of products based on supply and demand. With the correct data, AI/ML can determine the discounts to offer that will increase sales and still be profitable.
This kind of optimization that increases efficiency and profitability, the two cornerstones of every business, is only possible with
machine learning in E-Commerce.
8. Excellent Customer Service
If your users feel like you actively acknowledge and resolve their concerns that can do wonders for your brand image. Again, Artificial Intelligence technology can play a crucial role in doing that.
You can offer excellent customer service with virtual assistants and Chabot technologies. While these bots aren't totally self-sufficient, they may help with basic transactions, freeing up support employees to handle more difficult issues.
Virtual chat bots also have the benefit of being available at all times. So they can answer simple concerns at any time of the day without having your consumer wait.
The possibility of growing your E-Commerce business with the help of AI/ML is endless. All you need is an expert tech partner by your side.
Narola Infotech is a leading machine learning solutions company that has worked with numerous clients all over the world. With 350+ IT experts, we have the capability and talent to provide you with the best solution for your E-Commerce business. All you have to do is contact us today, and schedule a meeting with our experts.