Five Ways Of How AI Is Transforming Digital Commerce Experience
As the market for AI in e-commerce continues to grow, any brand not investing in its potential is likely to lose out on the tremendous market opportunity that AI presents
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Funny, isn’t it? How your favourite e-commerce site always manages to present you with the perfect pair of shoes or the TV with the specifications you had in mind or the book that just naturally matches your reader profile? That is the wonderful technology of AI at work in all its everyday glory. AI is revolutionising the way corporates do business and interact with their stakeholders, eCommerce being no exception. Old shopping patterns are being junked to make space for the very new and extremely effective business strategies. Operational tasks are being automated, customer experience is being optimised and the cash register has been abuzz on the back of AI. For the firm, the AI technology, a veritable godsend, is effectively leaving ample elbow room for the managerial leadership to take better-informed, incisive decisions with business multiplier effects.
Data stands as testament to the muscular heft of AI’s utility. According to InsightAce Analytic's latest market intelligence research report, the global AI-Enabled Ecommerce Solutions Market size was valued at US$ 3.71 Billion in 2021, and it is expected to reach US$ 16.8 Billion in 2030 at a promising CAGR of 15.7% from 2021 to 2030.
Given AI’s prodigious impact on the cumulative sales, the technology has become an integral part of the customer engagement roadmap. To better understand how the technology can be employed to push up the bottom line of your company, we need to have a grasp what AI really entails and how it is reframing conventional and traditional retail shopping patterns.
Hyper-personalisation is the name of the game:
There is no match to AI’s prowess when it comes to delivering a personalised experience to customers through multiple product recommendations that retain customers’ interest. Its algorithms run through monumental datasets to zero in on the most actionable insight into customer behaviour. Brands, as a result, manage to stay ahead of the customer’s choice and etch a place for themselves in his mind.
Recently, Netcore Cloud’s AI-led Customer engagement and personalisation solution ensured that the home & lifestyle brand, Chumbak, could personalise the customer experience on its Ecommerce site. This resulted in 15% of overall revenue within just 90 days and an 18% increase in their CTR (Click through rate) on their product listing pages.
Powering sales & operational efficiency via forecasting and analytics:
The world is riddled with disruptions. Every business must prepare for these disruptions by undertaking a forecasting and analytics exercise as an unavoidable part of the business planning process. Brands deploy AI skillfully to arrive at potential sales figures, inventory management, and predict outcomes of marketing initiatives. Artificial Intelligence enables brands to make informed decisions that propel the top line to greater heights. AI ratchets up the sales figures by laying down granular data on the targeted customers' geographical location, age, gender and socio-economic bracket.
Chatbots and Virtual Assistants to automate customer engagement:
Chatbots are the wonderkid innovation in the E-commerce world. Their popularity stems from their ability to automate large volumes of inbound calls from customers and enable smoother complaint redressal round the clock. The technologies that power chatbots, such as AI and ML, can absorb and learn expeditiously from customers' grievances. As a result, AI-powered chatbots deliver smarter solutions to customers within a brief time bracket.
Visual Search for more accurate product discovery:
Visual Search is a faster, more efficient method to conduct searches online. In contrast to text, visual search uses images to return several results that match that search more accurately. Using image recognition techniques, search engines can provide incredibly relevant results. Brands are looking to improve their visual search capabilities so consumers can upload images and find similar or complementary products in their stores.
E-commerce fraud has scarfed down millions, if not billions of rupees, in India. Ever since the world has become more dependent on digital media, digital fraud has morphed into an intractable problem.
One key utility of AI in this field has been its capacity to suss out fake reviews and products on online platforms. Retailers have significantly benefitted from this feature and have weeded out negative reviews that are unjustified and outrightly false. Retailers similarly employ AI to spot and report counterfeit items.
The final word
E-commerce brands are increasingly turning to artificial intelligence to improve their analytical insights, create a more personalised customer experience and increase their affordability. As the market for AI in e-commerce continues to grow, any brand not investing in its potential is likely to lose out on the tremendous market opportunity that AI presents.
(The given article is attributed to Prashant Kumar, Co-Founder at Unbxd by Netcore Cloud and has been exclusively created for BW Disrupt)
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