When we walk into a brick and mortar store, a battery of attendants ready to address our needs makes us feel special. One guides us through various product sections, the other helps us select the right size and type, and another makes sure we don’t have to waste an extra minute finding a similar pattern. This royal treatment is what makes us go back to the same store again and again.
Riding on this, Artificial Intelligence, or AI, is taking over the world of eCommerce thick and fast. The technology gives the dull and boring online shopping exercise an engrossing spin to match the customer-is-the-king feeling offered by physical stores.
It would be an understatement to say that the system the world knew is destroyed today. A tiny but deadly virus — Covid-19 — has changed the way we live, think and spend. Every part of the living experience is changing rapidly, and so is the way we shop.
As the world in 2020 comes to terms with new normal like social distancing and limited gathering, it’s no surprise that the eCommerce business is all set to spiral like never before. Staying on top and growing the business exponentially in the post-pandemic world calls for understanding the customer’s needs, generating leads, or providing an enhanced experience. And, AI is the platform to optimize your eCommerce business.
These figures are a good case in point to understand why AI has become a must-have trait for e-commerce:
- Global eCommerce sales are projected to touch $4.8 billion by 2021.
- Gartner has predicted that around 80% of all customer interactions will be managed by AI technologies (without any human agent) by the end of 2020.
- The limitless power of AI is expected to contribute over $15.7 trillion to the global economy by 2030 (source PwC survey).
- Giants like Google, Microsoft, and Amazon are already investing heavily in AI. (Example: Google’s £ 400m acquisition of startup DeepMind)
- According to Accenture, AI is set to turbo drive the profitability rates by 59% in the wholesale and retail industries by 2035.
Here’s how to optimize your eCommerce business with AI in the year ahead and beyond.
The size of your business or budget doesn’t matter. There is an AI solution available for all to increase sales and conversion rates.
Personalized product recommendations:
- Let your AI-enabled website remember the customer’s apparel size or foundation shade or which energy drink he prefers, and they are most likely to come back for shopping.
- Give customers the ultimate shopping experience by catering to their choices and needs through their feedback, emails, and past purchases.
- Surprise them by showing products that they didn’t even know existed. Such personalized recommendations saw conversion rate zoom 915% on products displayed in shopping carts, 474% increase in recommended products displayed on category pages, 411% on product pages, 307% on order confirmation pages, and 248% home pages, and 192% on search results pages
If Siri and Alexa’s growing popularity is anything to go by, days are not far away when customers would like every website to take their voice command. The convenience it offers has made people rely on voice assistants to make calls, send texts, and even forgo other tasks like checking directions and weather. Given that over 8 billion mobile phones are likely to be manufactured with the voice command facility by 2023, this trend is set to take the eCommerce profits to the next level.
Mobile payment users have hit the 2-billion mark worldwide in 2020 (source Juniper research). This gains more significance when many surveys indicate that over 50 percent of online shoppers use mobile phones. The importance of contactless and safe payments has expanded the base of digital payments drastically. AI is helping reduce customer friction and even fight fraud. When the consumer is on a lookout for faster payment and checkout experience during online shopping, mobile payments take the eCommerce business to the next level.
Instant reply to consumer queries is a sure-shot way of converting online engagement into a business. When doubts about size, dimension, and quality are resolved on the spot, it ensures an extraordinary experience and helps grow the number of loyal customers. From $2.6 billion in 2019, the chatbot market size is expected to grow to $9.4billion by 2024, with eCommerce benefiting the most. Bots ease the time zone issues and even attend to the customer when your human resource is away.
Trial of apparel or testing of furniture is full of risk in the post COVID world. Little wonder the customer would instead prefer going the eCommerce way if it is easy to know how the product looks and feels. People process images 60% faster than words. Augmented reality helps them visualize the product and make quick decisions.
Gone are the days when inventory was managed through current stock levels. Now, AI decides it based on the recent sales figures, projected changes in product demands, and potential supply related issues.
Intelligent email marketing:
Riding high on AI, email marketing has come back with a bang. Emails of the right product can be sent automatically at a time when the recipient is most likely to read it. More than automated, it ensures a human touch.
AI gives a platform to run your business 24X7 without any human assistant or presence. Don’t run the risk of missing the train that is set to put eCommerce on a fast track. Even if the Covid-19 pandemic uncertainty entirely dissipates, the people’s habit and mood are set to accelerate to eCommerce business. Chatbots, voice assistance, augmented reality, and mobile payments are emerging as proven AI components to gradually and steadily boost earnings growth.
If you’re looking for a company that can help you streamline your operations in the new normal, consider Transform Solutions. Transform Solutions can assist you with Artificial Intelligence services. Know more about what we can offer by visiting our service.