In this new digital decade, Industry 4.0 technologies are disrupting every aspect of our lives, be it education, work or commerce.
Artificial Intelligence (AI) offers countless opportunities to complement human knowledge and enriches people’s lives and work.
Today, AI is being leveraged aggressively in transforming economies and businesses across domains including e-commerce.
According to a new report from Tractica, AI has use cases and applications in almost every industry and promises to change existing business models while simultaneously creating new ones significantly.
The market intelligence firm forecasts that annual worldwide AI revenue will grow from $643.7 million in 2016 to $36.8 billion by 2025.
E-commerce companies are utilising artificial intelligence to offer better customer experience to their users, enhance productivity and optimise their margins.
Let’s have a look at how AI is revolutionising the world of online commerce.
Hyper-personalisation for superior customer experience
Understanding customers is domain agnostic and crucial to the success of any business.
Artificial intelligence is helping businesses in offering a nuanced customer journey to their customers by bringing in personalisation.
Significant advances in artificial intelligence, deep-learning, algorithmic neural networks and machine learning have ushered in personalisation 2.0 or “hyper-personalisation” where businesses can anticipate a discreet need and offer a tailor-made offer to customers in a proactive way rather than a reactive one.
The next level of personalisation should be fortuitous empowering businesses to embrace a proactive and anticipatory science of enhancing customer experience.
Efficient recommendation systems to augment sales
Today, online commerce companies are utilising artificial intelligence recommendation engines to offer better product offerings/solutions to their customers. Personalised product recommendations help in increasing sales, profitability and revenues.
Recommendation engines analyse data and algorithms and segregate relevant products and services for users.
Recommendation systems behave like an automated shop assistant and recommend products/services which might pique the interest of the customer. AI helps e-commerce players to strategise target marketing through email campaigns and website pages.
Integration of AI in CRM systems
To ensure that the messaging is spot on and reached the intended target customers, the integration of AI with CRM systems is necessary.
Artificial intelligence systems can give CRM the required input by way of natural language learning and voice input to answer customer queries and explore new sales avenues for the sales department.
AI-driven CRM systems can improve sales processes significantly by offering data-driven insights.
Competitive advantage through usage of assortment Intelligence
Customer demands are compelling e-commerce companies to revisit their pricing strategies. Retention of customers is as significant as getting new customers.
Online businesses, therefore, are employing assortment intelligence to gather actionable insights into their competitors’ product offerings and tweak pricing accordingly.
Optimisation of inventory management
By analysing historical data and producing data trends, artificial intelligence can help businesses in making the right choices when it comes to maintaining inventories efficiently.
AI-powered inventory management systems can augment productivity and help in inventory optimisation.