Artificial intelligence is being deployed by companies at increasing rates, poised to be a major business disrupter in the coming years.
Many eCommerce brands are seen as leading adopters of the technology. With a low barrier to entry, using artificial intelligence (AI) is allowing companies to eliminate a variety of manual activities. The power of AI is not only being used to meet the needs of consumers, but to improve operational efficiency. It is imperative businesses approach the technology with an open mind and create a long-term strategy. Continue reading as we explore several of the benefits of using AI in eCommerce.
AI is largely known for helping brands get to know their visitors. In doing so it allows brands to personalize recommendations based on behavior and known history as compared with similar profiles. This is probably the most common and widely accepted use of artificial intelligence and eCommerce today.
When it comes to your marketing, it must appeal to decision-making AI, not simply decision makers. AI will be invaluable to marketers in the coming years when trying to reach the growing amount of hyperconnected consumers who continuously redefine value by comparing prices online and also when browsing in a non-digital store. With the help of smartphones, brands can optimize, update, and tailor experiences to each shopper in real time with an omnichannel strategy with AI. All of these insights around selling paired with personalized promotions can to a large increase in sales growth.
AI is well on its way to helping forecast and automates brand decision-making in real time. With the technology identifying and learning patterns in the data across numerous disparate sources (previous transactions, social media trends, shopping patterns, online browsing history, seasonal shopping, etc.), AI can help adjust and excel in an increasingly dynamic marketplace. With improvements in forecasting, machine learning and computer vision can help better predict buyer expectations all while optimizing and automating supplier negotiations.
Optimized forecasting improves not only supply management, but can build impactful promotions, and optimize assortments and pricing. In B2C, AI has shown significant forecast improvements that increase efficiency, including a 20% stock reduction for brands using deep learning to predict e-commerce purchases.
The buyer's journey doesn’t end once they complete the purchase. Today they are looking for their orders to appear in several days, not weeks. That means the last mile of delivery can really make or break a shopping experience and their loyalty to a brand. It’s well worth it for businesses to put the extra into getting it right the first time.
Beyond forecasting, optimizing the supply chain as a whole is another one of AI’s specialties. When seeking to allocate resources in the most efficient way, such as last mile logistical issues, harnessing the power of AI can be a game changer.
AI can easily streamline the entire supply, improving just about any point of friction. Optimizing the delivery route, warehouses, van space, and allocation can all be optimized with the data and technology of AI. Saving both time and money, it solves challenges that are easily above the powers of even the most highly trained and experienced human.
AI continues to expand in how it proves helpful in eCommerce. Forward looking, user experiences will continue to be enhanced with the power of AI in some of the most futuristic but fascinating ways. Consider deep learning, facial recognition software, and computer vision technologies to help brands further expand on personalization, order forecasting, and supply chain management.
If your brand is looking for guidance and building a strategy around using AI for their eCommerce operations, contact the experts at Echidna to start a conversation.