Boosting revenues with AI technology
Amidst the evolution of AI, digital retail technology has come a long way from presenting pre-recorded messages to simulating human-like conversations with human users.
Providing relevant recommendations and personalized guidance is a lost aspect of online shopping. Traditionally, recommendations and personalized guidance made brick-and-mortar shopping pleasant with help from an in-store assistant who’s knowledgeable in the offer.
For those who are not familiar with AI, all you require to understand is that machines do tasks that would normally require human help. For instance, in April 2019, Warby Parker, an online retailer of prescription glasses and sunglasses started using AI to enable its customers to try on glasses virtually. It uses AR, a technology that overlays computer-generated images onto real-world images.
AI adoption is ramping up quickly with an estimated global retail spend of $7.3 billion per year by 2022, according to Juniper Research. The presence of AI technology in the retail industry goes beyond providing the link between online and offline connections among the customers but assists in personalizing the complete shopping experience.
How will AI technology influence e-commerce?
From playing a role in managing the customer experience to providing buying, replenishment, and fulfillment capabilities to analyzing the ever-growing expanse of big data, Artificial Intelligence (AI) is here to stay in Retail.
e-commerce businesses around the world are using AI to accomplish tedious tasks so they can channel their efforts towards more intelligent work. Artificial intelligence in e-commerce is present to increase overall profit margins right from the personalization of online purchases, warehouse automation to automated pricing management.
Amidst the prevailing situation of the online marketplace, e-commerce has emerged as a more saturated and competitive indicator for a business to thrive, it necessitates to be faster and smarter.
AI technology to increase your business?
Keeping in view the demand for AI, the potential to achieve more sales and profits. Let’s look at some advantages of AI technology:
1. Efficient sales processes
Today, various AI solutions understand natural language and recognize the voice. Such AI solutions can enable a CRM system to automate responses for customers, like queries, solve issues, and even identify valuable opportunities for sales. Various AI-based CRM solutions can also offer to multitask function handling too.
2. Personalization across leading-edge devices
AI-focused personalization across the e-commerce industry has appeared in recent days. The fresh development in AI has enabled businesses to identify how customers interact online. AI can monitor and identify different devices used by end-customers, right from a mobile app, website, paid marketing, email marketing, or any other technique, AI creates a personalized view for everyone.
3. Customer-focused search
AI allows an eCommerce store to display relevant and complementary products to customers, increasing the chances of inclusive sales. In essence, AI can assess the color, size, shape, and more attributes of a product. Understanding such attributes enables a business to come up with relevant products easily.
Re-targeting potential customers holds great importance. Utilizing AI technology concepts, retailers can know who bought their product before and are able to remind them of their products later on with retargeting options. A retailer can offer special offers to specific customers on products that they prefer more.
Furthermore, they can see if a customer spends more time on Android or iOS devices, identifying their preferences towards individual products.
AI-based tools are therefore especially successful in digital advertising, where it can collect user data from people visiting websites, clicking on ads or buying from an e-commerce store. It can then use this data to create personalized and hyper-targeted ads. Thanks to AI technology, tools like Nanos are able to simplify the campaign creation process, making sure everyone can profit from digital advertising – without even having in-depth marketing knowledge.
Key considerations to keep in mind for designing AI strategies
Here are our top four steps that are essential to establishing a successful AI strategy:
- Rigorous planning: Prioritizing relevant AI-based use cases and assessing key technologies is a must.
- Customer centricity: Deployment of digital customer touchpoints, experience design, and AI solutions should be orchestrated to ensure customer data is optimally leveraged.
- Building a strong tech ecosystem: AI services orchestration and deep learning model lifecycle toolchains is crucial. Awareness of the latest user privacy mandates would help in building brand reputation.
- Outlook: Going forward, personalized and humanized interactions, at scale, will become table stakes in e-commerce. Successfully leveraging AI will power CX, generate trust, create loyalty, and drive business returns.
Ultimately, this means that AI will help us to improve our e-commerce platforms to cater to the needs and interests of visitors. According to a report by Boston Consulting Group (BCG), retailers that chose to implement personalization strategies have observed overall sales revenue gains of 6-10%, a rate two to three times more effective than other retailers. It could also boost profitability rates by 59% in the wholesale and retail industries by 2035, according to Accenture. AI technology is changing the name of the game with online retailers and e-commerce marketing.
If you’re ready to design an impactful AI-based digital advertising campaign, we’re ready to help at NANOS AI.