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5 Ways AI is Revolutionizing E-commerce and Customer Experience

  • Vrinda Mathur
  • Jul 13, 2024
5 Ways AI is Revolutionizing E-commerce and Customer Experience title banner

Artificial intelligence (AI) technology, which was previously exclusively found in science fiction, is now a part of our daily life. We use it to send emails, check the weather, and even diagnose illnesses. AI is very important in ecommerce.

 

Previously, businesses regarded advanced technology such as AI as "good to have," with the goal of delighting customers and encouraging repeat visits. Now, ecommerce companies rely on AI to grow their business, maintain worldwide operations, and meet client requests across many channels.

 

Ecommerce organizations have integrated AI in a variety of business processes and will continue to discover new and inventive applications for AI in ecommerce as usage grows and technology progresses. Here's what you should know. 

 

Why is customer experience important in e-commerce?

 

Today, we have the tools and technology to answer all of these questions. A modern online business can provide an amazing and personalized e-commerce customer experience that allows online customers to buy with confidence, identify the correct products, and complete the transaction quickly and efficiently.

 

The reality is that we live in the customer age, and organizations that want to survive in the long run must shift their focus away from client retention and towards customer obsession.

 

In ecommerce, customer experience refers to how a customer interacts with an online store. It covers the full client journey, from browsing to post-purchase assistance. An excellent customer experience includes a user-friendly website, fast loading times, easy search, clear product information, and a simple checkout process. 

 

Other crucial considerations are timely order fulfillment, efficient shipping, and responsive customer service. Providing an exceptional ecommerce customer experience is vital for building customer loyalty and increasing sales, so businesses should continually assess and optimize their customer experience strategy.

 

Paying attention to the e-commerce customer experience can help organizations become more competitive and customer-focused, resulting in increased sales and business success. And there is plenty of evidence to back this claim.

 

Also Read | E-commerce and M-Commerce

 

How e-commerce enterprises can use AI to deliver wonderful customer experiences?

 

AI has transformed the e-commerce market in recent years. One of the most significant impacts of AI on e-commerce is the transformation of customer care. AI-powered customer service solutions are becoming increasingly prevalent, and they are helping to improve the customer experience in a variety of ways.
 

 

  1. Engage in more natural conversations with your consumers.

 

Chatbots have been supporting customer service teams at ecomm organizations for some time, but gen AI brings the next level of intelligent, human-like support. By adding a large language model (LLM) layer to an existing chatbot, support teams may ensure that the chatbot sounds like a team member.

 

An LLM is a generative AI model that has been fed a vast quantity of text data and can write texts that are similar to those on which it was trained. By combining an LLM layer with your core intent-based architecture, you get the best of both worlds: natural-sounding conversations and a bot that understands what your consumers want. 

 

  1. Create tailored offers based on clients' purchasing behavior.

 

According to the Salesforce State of the Connected Customer Report, 79% of Indian customers consistently demand tailored offers. AI in ecommerce may help you examine consumer data collected from many touchpoints to better understand each customer's preferences, behaviors, and purchasing patterns. Use these insights to create tailored discounts, loyalty programmes, and incentive systems that boost consumer loyalty and cart value.

 

  1. Create a bot in minutes and instantly respond accurately.

 

If you already have a lot of documentation about your company — whether it's your Knowledge Base, CRM Help Centre, FAQ website, or any other company page — you can use Gen AI and LLMs to create a chatbot in minutes. The LLM can rapidly provide the correct information by retrieving it from your company's knowledge base or website.

 

So, if a consumer asks a question that is documented in your help center, the bot can look it up and provide the answer. For example, if someone inquires about the average delivery time, your chatbot can immediately inform your consumer that items are often delivered within 3-5 business days.

 

  1. Make highly relevant recommendations based on client preferences.

 

Personalized product recommendations can help customers feel noticed and understood, which improves their overall experience. It's no surprise that 89% of customers expect ecommerce companies to grasp their specific needs and expectations, while 64% lose trust in organizations that don't align communication with their interests. 

 

Using AI-powered workflows and analytics, you can, Offer relevant product recommendations based on changing client preferences and Identify and display consumer reviews and ratings for products to influence purchasing decisions.

 

  1. Transform replies from factual to fun

 

Another method generative AI can assist agents is by changing the tone of their responses. So you may compose a basic response and then ask the LLM to modify it to a more formal, interesting, or amusing tone of voice. This is especially important if your business has a distinct tone of voice, since it guarantees that your customer experience is consistent and on-brand throughout all interactions. 

 

Also Read | How does AI help in customer service?

 

Pros of using AI in E-commerce

 

AI is not a new notion. However, it has progressed from being an intriguing subject for sci-fi films to actually helping real-world businesses save significant amounts of time and money. Artificial intelligence in ecommerce, or online shopping, has proven to be increasingly helpful for both customers and online retailers. 

 

Furthermore, the benefits of AI in e-commerce are making it much easier for brick-and-mortar firms to break into the ecommerce industry, grow rapidly, and even go global.

 

  1. Increased sales.

 

AI can help you improve your sales process by gathering and analyzing consumer data to personalize your sales funnel. With additional data, you can target the appropriate prospects and deliver the correct message at the right moment. Chronopost, a French delivery business, witnessed an 85% boost in sales revenue after implementing AI-driven ads during the 2022 holiday season. 

 

  1. Creation of Virtual Shopping Experiences

 

This is where e-commerce artificial intelligence and augmented reality technologies intersect to create a genuinely engaging and thrilling online buying experience. Currently, realistic 3D representations of products may be viewed online on the screen of a smartphone, tablet, or computer via AR technology. AI-powered AR marketing tools, such as ARitize3D, can quickly produce web-friendly 3D models of a huge number of products. These 3D models can be embedded into the individual product websites, allowing online consumers to examine them on their screens.

 

  1. Reallocate time and resources.

 

Emailing, order fulfillment, customer assistance, and payment processing are all examples of operations and procedures that can be automated using AI. Automations assist you save money on labor and enhance operational efficiency, allowing you to spend more time developing rather than maintaining. AI-powered forecasting in supply chain management can minimize errors by up to 50% while also reducing lost sales and product unavailability by up to 65%.

 

Wrapping Up

 

Finally, AI and chatbots are transforming the ecommerce business by boosting customer service, personalized recommendations, inventory management, marketing efforts, and fraud prevention. Businesses that leverage these technologies can stay ahead of the competition and create a better experience for their customers.


Also Read | AI in Digital Marketing: Examples and Benefits

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