Gaining an understanding of artificial intelligence (AI) and putting it to use is of utmost importance when your goal is winning the eCommerce game.
It’s not a question of whether or not your competitors may or may not use AI–many of them already use it. You risk falling behind if you don’t start putting it to use within your business.
The proliferation of AI in eCommerce began a few years ago, and its impact on businesses of all kinds continues to grow. In this article, you’ll learn what AI is all about and how to implement it to drive results.
Artificial Intelligence Explained
In a nutshell, artificial intelligence is the act of simulating human intelligence with machines. Computers get programmed to react, think, and even use similar intuition as we do. Used in the context of business and marketing, AI helps humans gather an immense amount of data and make sense of it all. Say you want to gather customer data from your website’s customer feedback forms. AI can organize and deliver that information in a way that makes it simple, so you can make product adjustments if needed. One way to use AI is through the process known as machine learning, which helps AI technology become “smarter” over time. This technology is what allows Amazon or Hulu to provide personalized recommendations to you on your phone. Machine learning also optimizes your paid ad campaigns by figuring out which customer profiles to stop showing ads to, as it searches for more qualified profiles to place ads for…Role of AI in the eCommerce Space
Let’s look at the various ways you can use AI to increase eCommerce sales.Dynamic Pricing
Adjusting prices manually for 100, 500, or 1,000 products can quickly become a full-time job. No one has time for that. Using AI, you can use various data points to adjust prices across your entire inventory of products. The machine learning process looks at customer behavior, market conditions, capacity, and inventory data to adjust prices dynamically. All of it happens in real-time without your direct involvement.Optimized Search
By monitoring the needs and preferences of each user, AI improves the experience for customers searching for their product desires on your website. Your customers get tailored results as they continue to search, buy, and interact with your website. The artificial intelligence process learns more about each customer over time. It comes to recognize and predict what they want seamlessly behind the scenes. This improves the customer experience and increases website interaction. Utilizing optimized search can help your business become more profitable, as customers continually enjoy shopping with you.Automation
Have you noticed how the more successful your eCommerce business becomes, the more repetitive tasks become? AI can manage this repetition for you, leaving you with more time to focus on the more rewarding aspects of your company. Use AI to help:- Identify high-risk customers
- Provide loyal customers special discounts
- Publish new products across multiple platforms
Prevent Fraud
With millions of data points running through databases, manually identifying signs of fraud can be challenging. Think of situations where someone:- Uses stolen credit information
- Signs up many times to use a promotional code
- Asks for a return after product delivery
- Tests multiple card details until the sale goes through