Artificial Intelligence (AI) has become a part of our daily lives. We have all used AI-based tech at least once in our lives – Siri, Alexa, and Cortana (VAs) are all products of AI-based advancements in communications tech.
Today, more than 58% of Google searches for local businesses come through virtual assistants. More than 27% if all local website users find the sites via voice searches. The numbers prove beyond doubt – AI is integral to the UX design for digital branding assets.
What Is The Applicability Of AI In E-commerce?
It is the era of AI and its subset, machine learning (ML). As the users become accustomed to the benefits of easy search, navigation, and product purchase, more number of e-commerce sites are now adopting AI and ML.
AI typically has several forms and functions. The simplest, yet most effective of them can be to –
i. Interpret the behaviour of the target audience
ii. Automate analysis of the big data collected through user interactions
iii. Leverage ML to provide optimal solutions to the problems in hand.
AI is the potential of a machine or software to scrutinize large volumes of data, interpret it, and “learn” to react according to circumstances in a manner similar to humans. Their ability can range from the analysis of data sets to determining patterns in the same for creating a personalized user experience for each visitor cum shopper.
What Are The Benefits Of AI In E-commerce?
Adapting new tech can be jarring for any individual, and it is more so for enterprises that have been running successfully for the last couple of years. AI has several benefits, including shortening the path to conversion and adapting to voice-assisted searches.
However, e-commerce platforms need to consider the significant advantages mentioned below before shying away from new technology.
i. An Increase in Revenue
One of the most significant benefits of adopting AI could be the amplification of ROI for e-commerce websites. However, the adoption will come with several clauses including but not limited to the preservation of consumer privacy, creation of new marketing channels, and quicker turnaround for complaint tickets.
ii. Providing Personalized Experience
While shopping online is convenient for everyone, there is one significant caveat – the loss of personalization. People often complain that there is a lack of personal touch when they are visiting e-commerce sites. There are no “sales reps,” whom they can ask for size referrals or trending styles that might suit their body types. It is a common concern among many shoppers and website owners alike.
iii. Suggesting Relevant Products to Individual Buyers
AI can bridge the gap between the website user’s need for personalization and the owner’s need for selling their products. The beauty of AI is that it can equip any website to meet the client’s demands for customization and personalization.
Modern AI technology can present potential buyers with a wealth of information on the products they are interested in, provide a fine-tuned selection of products for them and offer delivery or shipment options convenient for their location.
Apart from offering a personalized shopping experience, AI can also provide a plethora of coupons, discounts, and sale options for the customers according to their preferences or buying history. 1-800-Flowers uses a similar service that allows the user to select the kind of events, the categories of gifts and offers suggestions accordingly.
iv. Offer Chances of Growth and Scalability
AI can live up to the standards of personal assistants that can serve up offers and products according to buyer personas. While e-commerce platforms like Magento already have existing apps that include similar features, the adoption of proper AI technology can accelerate the growth of any e-commerce website.
Research shows that personalized services can boost customer satisfaction. Satisfaction is what drives customer retention and loyalty. More than 63% of all consumers between the ages of 19 and 29 begin consumer service interactions online. Millennial consumers no longer evaluate a brand by the prices and offers, but by their customer services.
v. Improve Customer Service and Enhance Satisfaction
Studies show that millennials are ready to pay 21% more (at an average) for a brand’s product and service as long as the brand offers stellar customer service. Aerie, the lingerie brand from American Eagle Outfitters, has been using a simple AI Bot to gain enormous popularity by targeting millennial and Gen Z consumers.
More than 33% of the consumers state that speaking to an agent of the company makes them more confident about purchasing from a brand. Most new small businesses and startups do not have the resources to appoint 24/7 agents to address the consumer’s messages, calls, and emails. It helps to have a “smart” chatbot service that can answer the consumers’ queries via the integration of AI and ML.
Several e-commerce platforms like Sephora and eBay now include AI chatbot services that respond like humans to queries and complaints. It has enhanced their UX and helped them boost their ROI. Unless there is a complicated issue, most chatbots are equipped enough to increase customer satisfaction by being the “friendly and informative friend” consumers seek.
vi. Optimize and Consolidate Data from Multiple Channels
Research shows that more than 60% of the customers in the US want omnichannel support that enables them to find solutions through automated services like mobile applications, or websites. It saves the consumer’s time and effort. It is only possible for the current e-commerce sites to do so by integrating AI technology with their existing apps and techs.
More than 70% of the current search traffic comes from mobile devices. Consumers switch between mobile devices and PCs or Macs according to their convenience and accessibility. The ability to consolidate the data from a registered account from all user devices enables the e-commerce site to preserve the personalization settings and offer a seamless service to each potential customer.
The integration of AI can transform your enterprise into a customer-centric business. It is a smart investment for a smart future. Advanced personalized solutions can address cart abandonment issues as well as high bounce rates.
It is the delicate touch that can humanize your entire e-commerce operations and add a dash of personalization to your current UX. It is the secret sauce for the recipe of success of every e-commerce site. Integrating AI can be a game-changer for your business and brand.