As humans, it’s natural that we’d be a little wary of artificial intelligence (AI). Popular culture hasn’t always painted a rosy picture of how AI tools can improve our lives, and we tend to mistrust things we don’t understand. (Let’s be honest: do any of us really have a deep understanding of machine learning?)
But for eCommerce businesses, AI tools can offer sales and growth opportunities like you’ve never seen before. With a creative human brain managing the incredible computing and predictive power of AI technology, eCommerce businesses can harness customer data to boost sales and make genuine connections with their (very human) customers.
Let’s take a look at why eCommerce brands like yours should embrace AI tools to improve the customer experience and strengthen your eCommerce business.
Is it okay to use AI for my eCommerce business?
In the past, online store owners worried that using an AI tool (like a chat bot) on their website would turn customers off their brand. But business leaders now report a 67% increase in sales thanks to chat bots, and most eCommerce brands are embracing the tools.
Chat bots are getting good at increasing sales the same way human sales reps do: they encourage customer engagement. Shoppers like that chat bots can instantly and accurately answer their questions about products, shipping, and returns. There may be points in the sales journey when they want to speak to a human, but for most questions, shoppers are happy to interact with a chat bot.
But shoppers are still hesitant to pay through an AI tool. Statistics show that 40% of shoppers aren’t comfortable with AI software, with most of them naming the security risks associated with AI payment options as the main reason for concern.
Effective AI tools for eCommerce (and how to use them)
If you’re ready to add AI tools for eCommerce to your website, but don’t know where to start, that’s okay. We’ll walk you through a few artificial intelligence tools that can add almost instant value to your customer interactions, marketing strategies, and conversions.
AI can help customers make better decisions
AI tools can help shoppers find the product that’s just right for their needs, leading to higher customer satisfaction. That’s good news for online stores, because happy customers are more likely to return and buy again. Here are a few other ways artificial intelligence can improve the shopping experience:
Personalised product recommendations: Product recommendations, often in the form of scrolling suggestions at the bottom of a product page, can help the customer find the exact item they want. eCommerce stores usually see higher conversion rates when they use AI algorithms to analyse user data and provide personalised product recommendations. Plus, relevant, targeted recommendations encourage customers to add more items to their carts, even after they’ve found what they were looking for.
Dynamic pricing tools: AI tools allow eCommerce businesses to adopt real-time pricing strategies. The software automatically adjusts pricing based on demand, competitor pricing, and customer behaviour. That way, brands can find a competitive price point that encourages shoppers to make a purchase without lowering the price below the profit threshold.
Inventory management and forecasting: Imagine the perfect online shopping experience: your items are in high demand, sales are through the roof, but your online store never runs out of stock. With artificial intelligence, you’re always a step ahead of stock forecasting. All stock remains available for purchasing (without over-buying), and your customers are never subjected to stockouts.
AI can foster positive customer interactions
Using AI in eCommerce can be an important part of your customer service operations, encouraging meaningful interactions with shoppers and increasing customer loyalty.
Chatbots and virtual assistants: As we’ve mentioned above, chat bots solve problems and answer questions for customers in real time. They’re available 24 hours a day and are extremely cost effective. As natural language processing improves, they sound convincingly human, which makes shoppers more comfortable using them to answer questions and handle complaints.
Customer sentiment analysis: You can gather valuable insights about customer sentiment from your AI tools. AI-powered software will analyse customer feedback and reviews so you can see exactly how your customers feel about your brand, products, and service. It’s a smart way to find areas for improvement in your customer experience, the products you stock, and your overall brand.
Natural language processing (NLP) for personalization: Because AI tools are constantly improving their NLP, they continually sharpen their ability to read nuance and undertone in human interactions. This allows eCommerce companies to understand and predict customer needs better, and tailor each shopping experience to the individual shopper.
AI can segment your customers
Customer segmentation is easier with AI-powered software. It allows companies in the eCommerce industry to predict which customers will buy the most, what they’ll buy, and how much it’ll cost to retain them or find more high-value customers in other markets.
Behavioural and predictive analytics: AI can create customer segments based on their browsing and purchasing history. Using that data, you can build targeted marketing campaigns that cater to customers who are shopping within a certain price point or for a specific range of products.
Customer lifetime value (CLV) prediction: Over the course of their relationship with your brand, certain customers will be more valuable to your company than others. AI can predict which customers will offer a high CLV to your company, so you can devote extra effort to wooing and keeping those customers.
AI can give the customer a smoother path to purchasing
Here are some fascinating ways to apply artificial intelligence in creating a seamless customer journey that guides shoppers towards a sale.
Visual search and image recognition: Using AI, customers can search for products via images rather than text. This makes searching for the right item even easier for shoppers. Plus, it’s fun and engaging, which encourages customers to spend more time in your app or on your website.
Voice commerce: AI voice assistants like Alexa and Google Assistant allow customers to shop via voice commands. Not only does this make online shopping more accessible for all customers, it makes interacting with online marketplaces extremely convenient. And it enables customers to shop at times they normally wouldn’t, like when they’re cleaning or cooking.
So, where is AI for eCommerce heading?
Whether you want to provide outstanding customer service and boost customer satisfaction, or you want to automate routine tasks like answering frequently asked questions about your products – AI in eCommerce can help you reach your goals.
Sign up for a free 14-day trial and explore the AI tools on offer through Base. You can speed up repetitive tasks and scale faster, all while offering a hyper-personalised experience for your shoppers.
