The impact from artificial intelligence to e-commerce marketing - The e-commerce industry is expected to generate more than $ 740 billion by 2023. The reason why this industry is growing at such a fast pace is clear: new technology brings a lot of opportunities. Meeting for entrepreneurs. When it comes to new technology, artificial intelligence is the most discussed topic.
Many people call AI a breakthrough technology because the ability to simplify cumbersome tasks often takes a lot of time and effort when performing manually. AI offers a multitude of innovative solutions for both small and large businesses. For the e-commerce industry, it is capable of adding many valuable features to the e-commerce platform, improving customer side experience.
Retailers, manufacturers and digital startups are always looking for opportunities to improve user experience and increase brand performance. That is why they now introduce a new standard of efficiency, using AI-enabled software. The field that can benefit from AI is marketing, because AI is capable of operating with huge amounts of data. Many companies choose to support AI because they offer significant competitive advantage, allowing businesses to provide a personalized customer experience.
Now let's see the AI side application in e-commerce.
- Chatbots
Chatbots are perhaps the most common examples of AI taking customer experience to the next level. Thanks to chatbots learning from previous conversations with them, customers are able to get the help they need at any time, in the most natural way possible. Moreover, according to statistics, 48% of consumers prefer live chat over other means of communication. 57% of consumers prefer chatbots because of instant feedback with them and 27% of consumers prefer to buy an item from chatbots rather than people.
2. Email marketing based on AI
Email marketing is still very effective and it will not go away soon. However, the effectiveness of your email marketing efforts directly depends on your ability to provide really interesting product information to your audience. This is where AI comes in handy, allowing marketers to optimize their side campaigns and send perfectly targeted emails at the right time.
Different automation solutions are likely to help you send emails at a time when specific customers are most likely to read them. This feature is potentially especially useful if you work with customers from different countries. Besides, professional localization services from The Word Point can help you develop an effective international marketing strategy.
AI is also capable of working with data from various social media and channels, learning more about every customer from their purchase history and interacting with them. The more AI learns about your customers, the more effective your email strategy will be.
- Recommendations are personalized
As we mentioned above, AI offers countless benefits for personalization. It is capable of analyzing customer-side online behavior, detecting key patterns and predicting which products are likely to attract specific customers. The AI solution collects information about prior purchases and on-site interactions with each customer. AI is also capable of analyzing customer side conversations with the support service or chatbot on your side. All this information allows e-commerce businesses to make relevant recommendations that help increase sales quickly.
For example, Netflix and Amazon have shown their power of personalization. The company is the first to implement an AI-based marketing strategy. Today, up to 80% of content watched by Netflix users is provided by an AI-powered referral algorithm.
Some users visit an e-commerce platform looking for a specific product, while others don't know exactly what they want or are willing to check out all similar items. Finding effective products is extremely important for any business and learning AI is likely to improve significantly. For example, AI is likely to be used for visual search. It provides a major competitive advantage, as 62% of millennials consider visual search to be the most important innovative technology.
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The prime example of the visual method is Pinterest Lens, which allows you to take a photo of almost any item around you and look for similar products or items likely to come with it.
The AI-powered tool for e-commerce platforms is not only capable of analyzing historical data but also tracking events in real time, using both internal and external sources. For example, AI is likely to help you quickly respond to a decline in sales caused by a competitor or a third party issue affecting the transaction.
In addition, AI is capable of predicting future results based on historical data and current processes. For example, it is able to predict which products are more likely to be purchased so that the manager has the ability to add needed items. The biggest advantage of analysis is that it is based on real data. It is not pessimistic or optimistic but accurate and realistic.
Although AI is still far from being able to replace writers, it has been used in content creation. Accurate and specific product descriptions are important for e-commerce platforms. Writing hundreds of product descriptions for product inventory is expensive, but an AI-based solution can automatically do it, saving you a lot of money.
The AI not only has the ability to rewrite information from the manufacturer's website, but also has the ability to search for product details on the internet, adding relevant information to your description. It has the ability to analyze keywords and select the information most sought by consumers. In addition, AI has the ability to effectively analyze the description side and make the necessary adjustments.
Dynamic pricing has the potential to help ecommerce retailers increase sales. But, humans cannot track and adjust prices as quickly and efficiently as AI. The AI is capable of analyzing historical data from you, competitors, making accurate sales predictions that give you price suggestions.
For example, Amazon uses AI-based algorithms to change product prices every 10 minutes. The algorithm analyzes competitor side prices and popular shopping models, as well as dozens of other factors, ensuring that prices are competitive at any time.
- Filter negative reviews
The importance of the reviewer, especially the negative review, is very important. According to the study, 90% of consumers make their purchasing decisions based on online reviews and 86% of them note that their decisions are influenced by negative reviews. Of course, you should always pay attention to negative reviews so you can improve your service. However, not all of them are real. Every successful e-commerce retailer has many negative reviews left by competitors and bots. Filtering fake reviews is tedious work that will take a lot of time if done manually.
However, AI capable of quickly detecting reviews marked as useful by consumers or written by verified users while eliminating fake feedback is likely to discredit your side. .
All e-commerce businesses work with tons of data and create more data than ever. Have customer records, purchase details, transfer information, etc. Working with vast amounts of data would be extremely difficult without AI, which is the main reason this technology is so popular.
An AI-based solution doesn't need to organize raw data to work with it. Moreover, they are capable of proving even better results when working with raw and unstructured data. AI is capable of processing data in any form, without limitation. It also has the ability to store different types of data in locations, setting new standards for flexibility and faster data processing than ever before.
Voice recognition is the fastest growing field in AI. Consumers search for a simple interactive solution and seamless user experience so they don't want to type every word in the search box. Powerful AI algorithm allows customers to just ask and get what they want. The popularity of AI-enabled devices like Amazon Echo and Google Assistant shows that people love voice search and how it can potentially help e-commerce platforms increase profits.
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End
The e-commerce industry has been around for a long time, so why should it suddenly change because of new technology? Artificial intelligence is not simply another technology. The groundbreaking potential on its side is undisputed because AI easily performs many tasks that humans cannot do. AI is capable of working with huge amounts of data, analyzing it, learning from it and making predictions based on it.
AI offers countless benefits for e-commerce marketing because it allows retailers to provide personalized experience and adjust their marketing strategies on the go. Effective data management, personalized product recommendations, chatbots and visual search are just a few of the competitive advantages that you are likely to gain using AI-based software. AI has the ability to analyze prices and offers on competitors, make timely recommendations so you don't lose customers. It also has the ability to manage reviews and ensure that consumers have accurate information about you and your products.
Due to the strong competition between e-commerce retailers, keeping up with customer expectations becomes essential and AI provides the perfect solution.
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