Like it or not, artificial intelligence (AI) will soon be fundamental to ecommerce success. As intelligent algorithms and models evolve, AI use cases in ecommerce are also growing.
Businesses across the ecommerce sector are turning to AI tools to help them create more powerful, impactful marketing materials and product descriptions. They’re using AI to expand the potential of their customer service teams. After all, AI solutions can deliver personalized, multilingual support to customers 24/7 – ideal for businesses with global audiences.
Ecommerce brands are even using AI to increase revenue. Some studies show that by 2035, AI will boost a company’s profitability by 59% on average. How? By delivering personalized product recommendations and eye-catching promotions to customers, and giving teams access to more powerful, proprietary data.
The bottom line? AI and ecommerce are a match made in heaven. Here, we’ll show you how you can unlock the benefits of artificial intelligence for your business.
The use of AI in ecommerce isn’t completely new. There are plenty of “AI in ecommerce examples” out there. Amazon, for instance, has always been a huge fan of artificial intelligence. The ecommerce giant uses AI for everything from product recommendations to customer service – and clearly, it’s achieving results.
However, the potential for AI in e-commerce is growing. Right now, the world of online shopping is exploding. By 2030, the ecommerce market will be worth more than $47.7 trillion. As the number of online shoppers grows, so does the competition facing ecommerce brands.
AI for ecommerce could be the solution. A McKinsey report discusses the seven main imperatives for “rethinking retail” in the coming years, and every one of those imperatives can be supported by AI.
Another report from MIT Sloan Management found 87% of business leaders believe AI will be the key to obtaining and retaining a competitive edge.
In a marketplace where customers are bombarded with endless options, AI helps companies stand out. It gives organizations an easy way to analyze big data, identify purchasing patterns, and predict customer behaviors. That allows businesses to tailor their offerings and marketing strategies with laser precision.
AI ensures ecommerce companies can stay innovative and agile when adapting to changing market dynamics. With AI by your side, you can identify what customers want from your business, and take your marketing and sales strategy to the next level.
Forward-thinking companies in the ecommerce market are constantly finding new ways to leverage artificial intelligence. Some use AI-powered tools for insights. They tap into cutting-edge reporting tools and analytics to learn more about their customers and their needs.
Others use AI to directly influence the online shopping experience. They might use bots to enable 24/7 customer service or share intelligent product recommendations with leads. While there’s no limit to how much you can achieve with AI in ecommerce, there are a few key areas worth focusing on when you’re just getting started.
Here are the top use cases for artificial intelligence in ecommerce.
Chatbots are everywhere. In fact, the use of chatbots for brand-to-customer communication has increased by 92% since 2019. We’re not just talking about old-fashioned bots either. Today’s chatbots don’t just respond to queries with generic pre-set answers.
Thanks to the introduction of natural language processing (NLP), machine learning, and generative AI, bots can be just as effective at serving customers as human beings. Just look at how Nike’s “Stylebot” can help guide customers toward products based on their unique preferences.
Modern, AI-powered chatbots in the ecom world deliver instant, responsive, personalized support. They make every customer interaction with your company feel fluid and engaging.
AI bots improve customer engagement and satisfaction by addressing common questions about everything from products to return policies. They can complete tasks (like checking whether a product is in stock), and even send discount codes to customers. Plus, they can boost a customer’s perception of your brand by replicating your unique tone of voice.
Solutions like Aivanti, the ultimate ecommerce AI assistant, use genuine data, insights into customer sentiment, and real-time context to make customer service seamless. This doesn’t just lead to increased customer satisfaction and conversions for your business. It also makes running your ecommerce company more efficient too.
With Aivanti, companies can reduce abandoned cart rates, increase average order values (with personalized upselling and cross-selling), and transform customer service – all without having to hire additional staff.
Customers are tired of generic, dime-a-dozen experiences. They expect real, authentic personalization. Ecommerce companies need to adapt to that fact – but they’re still struggling to do so. According to one survey, personalization is a top priority for most retailers. Yet only 15% of business leaders say they’ve invested in a full personalization strategy.
The simple reason for this is that personalization is difficult to implement and automate at scale. That’s where AI in ecommerce makes all the difference. Advances in AI and machine learning ensure companies can quickly and effectively customize every shopping experience to each customer.
AI tools can combine multiple data points to create a unique journey for every buyer that visits your store. An AI assistant or chatbot can send product recommendations to customers based on their browsing history, previous purchases, or location.
That means every recommendation a customer gets when they visit your store is tuned to their specific needs. It’s like giving every website visitor their own personal shopper to work with.
Sharing hyper-personalized recommendations with customers is a proven way to increase sales. It can boost your revenues by up to 15% on average. But the benefit of personalization goes beyond instant profits. When customers believe your business actually understands their needs, their opinion of your company improves. That means you retain more repeat customers too.
Plus, the AI tools you use can help you discover new ways to upgrade personalization and reduce churn. For example, tools like Aivanti can analyze cart abandonment behavior, and identify what works when you want to drive leads back to your store. They can even help you figure out when to follow up with customers with email, or messages to increase future sales.
The number one reason customers shop online is convenience. Unfortunately, even if customers know what they want to buy, actually finding an item in your store can be difficult. They might have a basic idea of what they’re looking for, but they don’t know how to “describe” it when typing terms into a search bar. That’s where AI in e-commerce search swoops in to save the day.
Artificial intelligence in ecommerce doesn’t just make it easier to search for items with text with things like predictive and semantic search. It can give customers more ways to look for products too.
Multimodal algorithms can analyze images shared by a customer and instantly share all of the similar products available on your store with shoppers. They can break image elements down by key features like color, pattern, shape and texture, and find matches in your catalog with laser precision.
That’s a game-changer for customers who might have seen something they want on social media or in-person, but don’t know how to describe it.
With an AI search tool on your website, you can instantly streamline the customer journey. You’ll help them find the products they want faster. That means they’re less likely to get frustrated and abandon a purchase altogether.
Plus, AI tools can even suggest additional products for customers to consider. For instance, an AI search tool on a fashion website could suggest a range of products to customers that share the same style or color as something they searched for. This instantly increases your chances of higher average order values. With AI in online shopping journeys, customers get to sidestep the common barriers to making a purchase, and your company benefits from increased sales.
One of the biggest benefits of using AI in ecommerce, is it can help you learn more about your audience. If you want to blow customers away with highly personalized experiences, you need to know more about them. Analyzing basic ecommerce metrics will only tell you so much.
Today’s ebusiness leaders need to dive deeper into what customers are thinking and feeling throughout the shopping journey. An AI ecom solution can help you explore the minds and thought processes of your customer base like never before.
An AI model with machine learning, deep learning, and NLP abilities (like Aivanti), gives you a deep dive view of customer sentiment. They can rapidly analyze huge volumes of customer reviews, feedback, and social media chatter. This means they can surface real insights into what customers think about your brand, what they like and dislike about shopping with you, and what you need to change to increase sales.
Whether customers choose to abandon a purchase because they can’t find enough information on your website, or because the checkout process is too complex, AI can find out. An AI tool can even help an ecommerce startup to discover new ways of optimizing products.
Based on market analytics, reviews, and customer data, these tools can show you what key characteristics or features will make your products stand out from the competition. Sentiment analysis allows you to fine-tune every aspect of your ecommerce business to align with customer expectations. That means you waste less time and money on strategies that don’t work, and achieve more sustainable growth.
Finally, in every industry, companies are beginning to leverage artificial intelligence to streamline and automate common tasks. AI is a fantastic time-saving resource for any company. In the ecommerce sector, AI models can automate all kinds of processes.
Countless companies already use automation and AI for ecommerce product research, forecasting, supply chain optimization and more. Probably one of the most beneficial tasks you can automate with AI, to increase sales and improve your marketing ROI, is the creation of product descriptions.
It’s easy to overlook the importance of product descriptions. But when customers are shopping online, they only have a limited insight into your product. If your descriptions aren’t engaging and informative, your customers will struggle to make purchasing decisions.
To make matters worse, if your descriptions aren’t optimized for both customers and the search engines, the visibility of your website drops. Generative AI tools can help you create eye-catching, educational, and unique product descriptions in minutes.
They can analyze your product catalog, identifying features and benefits. Some tools can even take customer and competitor data into account when suggesting product description templates, or optimize your content for specific keywords, boosting your SEO potential.
The key thing to remember when you’re using artificial intelligence in ecommerce to create content, is that it can only handle the majority of the “heavy lifting”. AI tools can give you the foundations you need for great descriptions – but it’s up to you to do the rest. You still need human beings to read these descriptions, tweak their tone, and ensure they’re accurate.
AI doesn’t eliminate the need for human beings when you’re creating marketing assets. However, tools like Aivanti can handle the grunt work, so your team members can focus on optimization, and other conversion-focused activities.
The potential for artificial intelligence in ecommerce is astronomical. AI in e-commerce can transform customer experiences, save your team crucial time, and increase conversion rates. The key to success is choosing the right platform or system for your specific goals.
Aivanti is the ultimate, all-in-one tool for unlocking the top benefits of AI in ecommerce. More than just your standard chatbot or shopping assistant, Aivanti is a fully featured solution for streamlining customer interactions, and boosting lead conversion.
Powered by the latest algorithms, Aivanti can:
The benefits of AI in ecommerce will only continue to increase in the years ahead. As the market becomes more competitive, and customer expectations evolve, AI will become the key to truly sustainable growth. If you’re not exploring the opportunities with AI and ecommerce yet – your competitors will be.
Now’s the time to give yourself the edge you need. Whether you’re upgrading customer service with intelligent chatbots, or using AI-powered analytics, AI will help scale your business.
