Artificial intelligence (AI) can help e-commerce brands and retailers deliver valuable customer experiences across online channels. Implementing AI may seem like a daunting task due to its underlying complexity and various applications, yet nothing could be further from the truth.
With the proliferation and increasing adoption of AI across the retail industry, there are now several approaches to gain from its advantages. This article highlights two easy ways to implement AI in e-commerce.
Why AI is Significant for Online Businesses
More and more enterprises are implementing AI as its benefits are difficult to pass on. According to Accenture, AI can boost profitability by an average of 38 percent across 16 industries, including retail, by 2035. To achieve that, however, AI must be directed to efforts that can guarantee success in e-commerce.
Today, a key differentiator for brands is personalization. It’s also one of customers’ top expectations from the online shopping experience. McKinsey reported that 71 percent of customers expect brands to deliver personalized interactions, and 76 percent become frustrated when that’s not met.
2 Simple AI Executions to Start Reaping its Benefits
As AI continues to transform e-commerce and shopper expectations, it has inevitably pushed brands and retailers to focus on what matters: making personalized customer journeys that stand out and stick.
When establishing a strong foundation for effective personalization and customer journeys, brands can use AI to deeply understand shoppers. With better insights into the path and actions that customers take from search to purchase, brands can then improve the shopping experience. Here are two easy ways to execute that.
Real-Time and Predictive Data Analytics
Brands can utilize real-time data analytics to deliver better shopping experiences throughout the customer journey. Based on real-time data, brands can better target potential shoppers, predict what will make them purchase, and nurture them down the buying funnel.
Full visibility into the end-to-end customer journey empowers brands to understand and act based on the data presented in real time and anticipate customers’ next actions. Beyond improving the customer experience, having all tools in one place streamlines processes, generating AI-driven insights that can spot revenue-generating opportunities, as well as identify areas that need correction and optimization to meet business goals.
Today’s savvy shoppers expect personalized offers and can see through insincere or generic attempts at promotion. With AI-powered personalization, e-commerce brands can ensure that their offers resonate with consumers and reflect their real-time buying intent. Additionally, brands can maximize return on investment and save margins by avoiding sitewide promotions that aren't personalized by only offering promotions to shoppers with a lower propensity to purchase.
In terms of operations, leveraging intent-based data can help brands optimize inventory management and marketing budget for promotions. It can also streamline cross-channel messaging via email and SMS as well as surface relevant product recommendations along with the right offers. Wherever shoppers are on the customer journey, personalized promotions can drive engagement, conversions and, especially, loyalty.
Leverage AI for Meaningful Customer Journeys
AI is now a key component of any e-commerce business, and together with its rapid adoption is the growing number of tools that make integrating AI easier than ever. In a world that puts a premium on personalized shopping experiences, there’s no excuse not to use AI to engage shoppers with meaningful customer journeys. It’s an indispensable technology that can empower brands to automate processes, predict trends, and deliver shopping experiences that customers love because they’re based on insights derived from real-time intent and context.
Ohad Greenshpan is the co-founder and chief technology officer of Namogoo, pioneer of the world’s first digital journey continuity platform.
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Ohad Greenshpan is co-founder and CTO at Namogoo, a company that was created with the mission of preserving an optimized online customer journey. The Namogoo platform provides visibility and control over the impact of third-party services on website performance and business KPIs. Ohad is an entrepreneur with a rich background in advanced Big Data and Machine Learning technologies.