Artificial intelligence (AI) will transform eCommerce over the coming years, such as with AI-driven chatbots, as we’ve previously discussed, or in several other ways – some of which the programs themselves will come up with.
AI enables businesses to understand customers better to and better make the right product offering at the right time and in the right way.
Consulting firm Gartner has predicted that by 2023, businesses using AI in eCommerce will achieve at least a 25% increase in customer satisfaction, revenue, and cost reduction. Customer experience specialists Servion have predicted that by 2025, they will be powered by AI in 95% of customer interactions.
The use of AI falls into two broad categories: business improvement and customer experience. On the business side, it can help improve products and services, complete business functions, and enhance website performance. For customers, it’s all about enhancing their experience.
Improving Products and Services:
- Pricing optimisation
- Image recognition and tagging
- Auto-generated product descriptions
- Conversion rate optimisation testing
- Retail analytics
- Self-checkout systems
Completing Business Functions
- Customer service applications
- Voice assistants
- Supply chain applications
- Inventory planning
- Automated warehouses
- Marketing and sales applications
- Lead generation
- B2B lead scoring
- Automating report generation
- Campaign analysis
- Prospective customer identification
- Cybersecurity applications
Enhancing website performance
- Review and forum moderation
- Marketplace moderation
- Provides a customised experience for each visitor, tailored to their desires and needs, rather than a broad and standardised offering
- Converts visitors, engages and nurtures, increases retention
- Data driven
- Ideally suited to eCommerce, drives additional sales.
- Improves customer satisfaction and loyalty
- Requires both the breadth and depth of data to be effective
- Customers using search usually know the product type they want and have the intention to purchase
- Failure to provide relevant responses to customer search terms results in them leaving
- AI-powered search engines combine search with machine learning capabilities to increase accuracy
With all of these areas able to draw on AI, it’s easy to see why it will have such a big impact over the coming years, providing businesses that engage with the technology a significant advantage over competitors that don’t.
If you’d like to discuss implementing AI solutions for your business, or for any other of your eCommerce needs, please don’t hesitate to click the button below to set up an obligation-free solutions consultation with one of The Playhouse Group’s specialists.
With decades of experience and as a certified Magento partner, The Playhouse Group can help your business maximise its online sales capabilities. Get in touch with our team and we can talk to you about this or any other eCommerce questions you may have.