Here’s how AI can offer exciting opportunities for the eCommerce industry
Buyers and sellers in today’s flourishing digital marketplaces are immensely benefiting due to real-time personalization, machine learning, and most importantly, AI-Artificial Intelligence. The technology has given a personal touch to the buying and selling procedure. Thus, it has managed to create itself a place in a wide range of businesses, sectors. Here’re two applications of AI that are helping e-commerce sites in enhancing customer experience and improving conversion rates.
AI algorithms in recommendation engines
Amongst all e-commerce stores, Amazon has managed to register tremendous growth. The secret behind its success is the early adoption of the AI engine. The technology helps Amazon to show its customers the products that they might be interested in buying.
The AI-powered recommendation engine learns about the customer behavior with every click, every page visited. Thus, it correctly picks items from the portal’s inventory that suit potential consumer’s tastes and habits.
The recommendation engine analyzes consumer’s shopping history and details about the items browsed, or purchases aborted previously. Then, combines this with data from consumers who show similar traits, and offers appropriate recommendations to the shoppers on various pages. Several online retailers have implemented AI recommendation engines.
The e-commerce recommendation engine works almost like a smart salesperson. It uses machine-learning combined with algorithms to identify relevant products and recommends the same to the consumer on various pages and touch-points. The recommendation engine can go through details about thousands of products within the company’s inventories in seconds.
Not just Amazon, even YouTube, LinkedIn, Netflix, and Facebook have such AI-powered recommendation engines in place that support various features. The technology does not cost a fortune; a reputed custom eCommerce development firm can design the same even for local businesses and startups.
Chatbots can respond to queries quickly
At times, companies fail to offer a quick response to consumer queries due to lack of human resources in the customer service team. Some emails are answered after 24 to 48 hours, and this causes a lot of frustration to the customer. It also negatively impacts sales conversion rate as leads remain unattended. For such organizations, chatbots can prove to be as good as smarter front-line agents to answer basic questions.
A chatbot is a chat program that can answer queries related to product details, availability, shipping queries, payment methods, etc. AI-powered chatbots learn from the past data (data crunching). Plus, human agents also train the AI system to make it smarter for interactions.
At present, there are two types of chatbots, the command-based and AI-based, machine-learning chatbots. The latter ones are smarter, designed to handle ambiguous queries with highly filtered results.
As most of the customers prefer to use the chat option to get their concerns resolved, chatbots can surely help e-commerce portals to offer improved customer service. Besides e-commerce websites, companies have also deployed chatbots to answer messages sent to their Facebook pages, and WhatsApp numbers as well.
The AI can analyze and process information, learn, classify things, and continuously improve to match the market demand in this era of conversational commerce. No matter if your e-commerce site serves the insurance, finance, healthcare, automobile, or the telecom sector. You can opt for a reputed software developing company and get AI-powered eCommerce development solution that suits your business needs.
Hardi Vora is a Content Strategist, Blogger & Digital Marketing Executive associated with Hodusoft, a Contact Center Software provider company. A writer by day and a reader by night, she is having an experience in writing an SEO-friendly, creative and informative contents for distinct industries.