How Artificial Intelligence Boosts Ecommerce Sales
AI-powered solutions are significantly transforming the online shopping experience and facilitating interactions between consumers and retailers. Since the technology has become refined and affordable enough for broad commercial use, it’s spreading across industries extremely actively. When it comes to eCommerce, AI is a huge aid in process automation and personalization. Moreover, AI helps to create new simple and convenient tools for searching and trying on products. Artificial Intelligence eCommerce can increase sales.
In this article, we’ll talk about four core directions where artificial intelligence will bring much avail to online merchants and their customers. They are product recommendations, chatbots, virtual try-on, as well as voice and visual search.
1. Personalized Product Recommendations
AI and machine learning, in particular, ensure the new level of product recommendations accuracy. To present truly targeted results, algorithms analyze massive amounts of one’s data extracted from a website, mobile app, and newsletters:
Purchasing history (with all details like prices and frequency);
Liked goods (added to a wish list);
Added to cart commodities;
Preferred sizes, colors, and models.
The outcomes of the analysis can be used on catalog, product pages, and email send-outs. Below is an example of smart recommendations from FARFETCH. The algorithm detected that a prospect is looking for a small and vivid purse; so, there are variants that they haven’t seen yet.
With more precise insights and predictions that match every user’s personal preferences, brands gain plentiful benefits:
Win regular and loyal customers who are pleased with the given product recommendations;
Achieve higher up and cross-sells;
Improve KPIs: conversion rate, average order value, and customer lifetime value;
Enhance the overall level of customer service.
However, such accomplishments are impossible without a properly functioning online store: mobile-friendly and swift. There are numerous ways to optimize a Magento store for superior performance. The similar tweaking we’d advise to conduct for any other CMS. Artificial Intelligence eCommerce can increase sales.
2. Smart Chatbots
Another popular application of AI in eCommerce is virtual assistants. A modern bot can resolve a relatively wide range of customer inquiries without lunch and sleep breaks. Amongsttasksthatchatbotscanalreadyperformare:
Answering frequently asked questions;
Recommending specific product categories;
Tracking current orders;
Navigating a user;
Calling for a human agent when a case needs their intervention.
Take a look at the screenshot below from JBL online store. Its virtual assistant can communicate with visitors quite effectively. Some brands implemented AI-based chatbots into their websites, while others equipped their Facebook Messengers with this functionality.
3. Virtual Try-on
This tool has recently become ubiquitous in the beauty industry (in a positive sense). It leverages AR and components of a facial/object recognition technology that largely depends on AI. Basically, with the help of virtual try-on, people can check out various makeup products, hair dye, glasses, watches, jewelry, and furniture.
Virtual try-on is available for websites (sometimes on desktop versions too), mobile apps, and so-called smart/magic mirrors in offline stores. The accuracy of a display largely depends on the camera; thus, it may perform best on smartphones.
A person only needs to opt for a product and allow access to the camera. The software firstly detects a face or other object, then analyses the given data, and finally adds an augmented layer that showcases a chosen item. Below is the instance of an online try-on on Garnier’s online store.
Also Read: The Future of AI: How Artificial Intelligence Will Change the World
4. Voice and Visual Search
People are really more into talking than writing, right? Without a doubt, voice search, fueled by the rise of virtual assistants (Siri, Alexa, Google Assistant), will be gradually supplanting traditional textual search. Correspondingly, key eCommerce players are preparing for drastic changes in customer behavior.
Visual search is one more emerging trend that retailers must be aware of. The function is aimed to accelerate the searching process and make it possible to find goods without knowing the exact name or brand that produced them.
Amazon is the brightest example of the possibilities of AI in eCommerce. Its mobile app provides both options along with a standard text search. When it comes to visual search, a visitor can search either by a photo or barcode. However, the algorithm seems to be not so perfect yet. We’ve failed to find several products that definitely were part of Amazon’s assortment.
In the meantime, Google handles such tasks excellently: the relevant results are delivered almost instantly (see the screenshot below).
There are numerous ways of using AI in eCommerce. Options powered by artificial intelligence make online shopping more and more convenient, pleasant, and even fun. Artificial Intelligence eCommerce can increase sales. Nowadays, none of the prominent brands deny the role AI plays in better customer service and elevating sales. Taking into account the perspectives (the self-learning capability of AI and the explosive growth of the industry itself), the AI solutions are certainly worth implementing into your digital commerce platform.