AI (Artificial Intelligence) is impacting every industry and it’s more than likely that you interact with some form of AI technology on a daily basis. The online shopping experience is no different. AI technology is infiltrating e-commerce platforms to improve the customer experience and streamline backend processes. Let’s take a look at how AI is impacting the e-commerce landscape today.
Enhanced Customer Service
37% of global ecommerce marketers leverage AI for customer service and support, while 86% of customers want AI to help provide customer service or resolve issues. AI-powered chatbots are available 24/7 to instantly respond to routine inquiries. As this technology evolves, chatbots are becoming more intelligent with the ability to navigate more complex requests. AI can also be leveraged to respond to customer service emails and to translate responses into other languages when needed. These capabilities free up human resources, resolve customer service issues more quickly and efficiently, and leave customers more satisfied.
More Personsonalized Recommendations
In the age of Amazon, Netflix, and suspiciously specific social media ads, today’s e-commerce customers have come to expect a hyper-personalized shopping experience. AI has super charged personalization tactics thanks to its ability to analyze large amounts of customer data. A customer’s purchase history, browsing history, demographics, and other behavioral patterns lead AI algorithms to recommendations tailored to that individual’s preferences. And they don’t stop there. These AI algorithms are constantly evolving and learning in real time when presented with new data. E-commerce organizations can utilize these recommendations in email marketing, SMS marketing, advertisements, and on their websites to motivate customers to “add to cart” and, hopefully, become loyal repeat customers.
Optimized Pricing
Similar to how AI can impact personalization, this technology can also be leveraged to better understand and predict what a customer is willing to pay. From competitor and market data to a customer’s purchase history, AI/ML algorithms can be leveraged to inform an e-commerce business’s pricing strategy. This technology can also be leveraged to update pricing in realtime in light of new data or information on the state of demand.
Backend Efficiency and Inventory Management
AI technology is changing the way e-commerce and retail businesses handle inventory management and sales forecasting. From real-time tracking of in-stock items to analyzing market trends and sales history to predict demand levels, AI’s capabilities result in lower carrying costs, less supply chain disruptions, and fewer delayed deliveries.
AI’s impact on the e-commerce industry cannot be ignored. Begin leveraging this technology and reap the benefits—happier customers, more efficient processes, and a decrease in costs. Contact Xcelacore today to learn how you can implement new technology to increase your revenue.
