4 Ways AI Is Helping E-commerce Companies to Grow Faster

Jun 20,2019 by Rahul Garg
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In this modern era, e-commerce companies are enjoying exponential business growth. It is because most of the people nowadays love to do online shopping.

From apparels to electronic items, everything is available on e-commerce websites, and this signals to a large range of variety, which could be another reason why the number of online shoppers is increasing with every passing day.

Thanks to the tremendous growth in the e-commerce sector, brick-and-mortar businesses are going through a tough time period.

However, competition amid e-commerce companies is getting fiercer with every moment, as ‘High-profit levels’ is the common goal. To leave nothing to chance, application of artificial intelligence are being used.

At the present time, artificial intelligence is deemed as the factor, which is helping e-commerce businesses to stay in the thriving state. Why? Well, you need to pay heed to the below-given pointers.

1. Paves the way for customer-centric search  

As we have already stated, e-commerce companies offer a large variety in terms of products owing to high inventory. Surprisingly, this factor sometimes annoys customers, which consequently, results in abandoned searches.

Generally, customers abandon their search when they struggle to reach their desired products. At last, they get discouraged from buying. This is where the significance of artificial intelligence snowballs because this tech slashes CES (customer effort score) significantly.

NLP, aka natural language processing, is a subfield of artificial intelligence, which lets customers search their favorite products by simply giving voice commands. Another application of artificial intelligence, which enhances customers’ search experience is ‘Machine learning (ML).’

Owing to ML, visual search is possible these days. Visual search enables customers to reach their favorite products by simply uploading some pertinent images. Furthermore, visual search results come owing to the combination of computer vision and image recognition technologies.

2. Ensures an efficient sales process

With regard to sales growth, those days are gone when picking yellow pages and pestering potential customers does the trick for you, as cold calling is not as effective as it was a few years ago.

Currently, TV and social media are the two major mediums, which can help to draw the attention of prospects towards products/services.

It’s no brainer that your sales campaign is likely to succeed when the conversion rate is high. Here, artificial intelligence comes into the picture.

By integrating AI’s NLP and voice input capabilities into the CRM system, e-commerce companies not only solve customers’ product-related queries efficaciously but also get great help in spotting sales opportunities.

The North Face, an e-commerce retailer, is already enjoying benefits of employing the applications of artificial intelligence. Its AI-enabled store learns about customers’ preferences after asking some relevant questions and then shows the best possible product-related results. By virtue of this, there is a rise in the efficiency levels of the sales process, which, in turn, results in high-profit margins.               

3. Gives personalized product recommendations 

To run an e-commerce business successfully, determination to go the extra mile for customers should be there. It is instrumental because if you work hard to make your customers’ online shopping experience better, there is a high possibility you attain business objectives sooner rather than later.

Presently, artificial intelligence has developed enough to precisely scan a pile of data about customer behavior, which as a positive consequence, results in individualized recommendations. Personalization is what customers, especially millennial ones expect nowadays from their favorite brands.

From the business’s point of view, customization is the key to unlocking more sales-oriented opportunities, building good brand recognition, and strengthening the customer base.

Big companies like Amazon, Netflix, etc. are enjoying the perks that AI-based recommendation feature mainly offers.

Applications of artificial intelligence evaluate data comprising customers’ preferences, purchase history, contextual info, browsing habits, etc. to generate personalized product recommendations, which, in turn, results in amazing online shopping experience.

Read Also: Artificial Intelligence | This Tech is Changing Businesses!

4. Virtual personal assistants

‘Can you tell about the major advantage brick-and-mortar businesses are holding over e-commerce companies?’

Still thinking? Let it be, as the answer is ‘Shop assistant’, who usually helps customers to make a good buy.

In the case of e-stores, customers don’t have such convenience as they have to browse categories, search by entering some specific keywords, apply filters in different combinations, etc. to make a good buying decision. All this process seems like a hassle, which indirectly affects the sales graph.

Thanks to artificial intelligence, e-commerce businesses can fill the void of missing shopping assistant. In this technology-driven era, voice assistants are one of the major spinoffs of artificial intelligence.

Similar to voice assistants, virtual personal assistants help customers to buy online without putting much effort. By means of AI-powered assistants, the need of visiting an app or browsing categories gets wiped out, as all the things can be done simply by the utterance of words.             

Thanks for reading thoroughly!

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