With global eCommerce sales projected to reach $4.8 billion by the year 2021 and a recent Gartner study stating that 80% of all customer interactions will be completely managed by AI technologies by the year 2020, there is ample opportunity for tech in eCommerce.
On top of the product recommendations you probably see after you leave an eCommerce website while scrolling through social media, artificial intelligence in the eCommerce industry is being used by online retailers for other things, such as:
- Providing chatbot services
- Analyzing customer comments
- Providing personalized services to online shoppers
- Offering security
The list goes on. In this blog, we’re exploring how the artificial intelligence industry is changing the shopping experience in 2020 and how you can take advantage of these growing technologies. Here are some powerful applications of artificial intelligence in eCommerce.
Mobile Identity Verification
Thanks to AI, the online checkout process has never been more secure. Many companies such as MoneyGram and Instacart are turning to an identity verification service such as Mitek that employs the use of AI-based analytics, algorithms, and biometric facial comparison to offer a more secure way to verify the identities of consumers.
This means that eCommerce companies no longer have to be wary of fraud or hackers attempting to infiltrate their secure checkout to collect sensitive information. Hundreds of AI analyzers instantly prove the authenticity of global ID documents to ensure the user is legitimate. The best part? You wouldn’t have to lift a finger!
There are several different e-commerce payment options one can implement on their company website. Explore your options and see how you can go about integrating with AI for the most secure process.
Chatbots and Other Virtual Assistants
eCommerce retailers are increasingly turning towards chatbots or digital assistants to provide 24/7 support to their online shoppers. Built using AI technologies, chatbots are getting more intuitive and are enabling a better customer experience.
What exactly are chatbots? They are essentially virtual assistants that are integrated into an eCommerce website to assist the shopper with any questions, concerns, or requests. The chatbots are built and customized to expect a wide range of conversation paths, offering any answer for anything that comes their way.
Having a chatbot on your eCommerce website is a great way to ensure your customers are consistently being taken care of, no matter the time of day. Chatbots can even call you by your name, adding to sincerity and intimacy between consumers and buyers.
Apart from providing good customer support, chatbots are enhancing the impact of artificial intelligence in eCommerce through capabilities such as:
- Natural language processing (NLP): Interpret voice-based interactions with consumers so that you can physically chat with a bot!
- Offering deeper insights that address consumer needs
- Self-learning capabilities that help them improve over time, the more they interact
- Personalized or targeted offers to customers
eCommerce Product Recommendations with Artificial Intelligence
Among the major applications of artificial intelligence in eCommerce, personalized product recommendations for online shoppers are dramatically increasing conversion rates (upwards 915%!). AI in eCommerce is wielding the power of big data to influence customer decisions. It does this by wielding its knowledge bank which contains important information on user behavior, such as previous purchases, searched products, and online browsing habits.
But does it work? Several studies have indicated that product recommendations for AI are essentially the largest driving factor in sales and conversions for users. Artificial intelligence product recommendations can be applied to several areas of eCommerce, with benefits such as:
- A higher number of returning customers
- Improved customer retention and sales
- A personalized shopping experience to online shoppers
- Enable a personalized business email campaign
The reason why product recommendations are so successful in eCommerce is that they are highly personalized. Indeed, personalization lies at the core of eCommerce artificial intelligence marketing and should not be overlooked. The more your AI can do to get to know your target customer in terms of spending habits, interests, demographics, etc., the more successful the product recommendation will be. You want it to hit the nail on the head and prompt your desired customer to click on it. They will then go through the purchasing process on your website. The product recommendation is simply the bait that prompts the hook, line, and sinker.
To conclude, this is an exciting time for artificial intelligence in eCommerce. We are just grazing the surface of what these intelligent, automated technologies are capable of. The future looks very bright for AI as they continue to reduce time and money spent on manual work, increasing efficiency, productivity, and overall growth.
