How eCommerce Companies Are Using AI to Boost Revenue

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December 8, 2020 Business

High-speed internet connections revolutionized how people live their daily lives. If in the past, people needed to physically visit a store to purchase the products that they need, in this modern-day and age, all people need to do is to click some buttons. Yes, the internet paved the way for the digital world that made eCommerce possible, which is the use of the internet to buy or sell goods and services.

The eCommerce industry is further revolutionized by the emergence of artificial intelligence (AI). This article gets into the detail of how eCommerce companies are leveraging AI to boost their revenue.

How Ecommerce Companies Are Using AI to Boost Revenue

Customer-Centered Search

One of the primary ways that eCommerce is leveraging AI to boost their revenue is by offering a customer-centered search. This means that eCommerce companies are continuously developing their search engines to think the way humans do. More often than not, this involves the use of natural language processing to contextualize the search results for online shoppers. If an eCommerce company appears on top of these search results, then more and more users are likely to visit their site and get to know their products, increasing their chance of acquiring paying customers.

Alongside a customer-centered approach is an improved recommendation for customers. With the use of AI, various brands can be more intelligent and efficient when it comes to scanning through loads of data to predict customer behavior. From there, more relevant and helpful recommendations can be generated. As a result, there is a greater chance for the user to purchase the product recommended, generating higher revenue for the brand.

High-Quality Leads

Another way AI is used by eCommerce companies to boost their revenue is by generating high-quality leads through it. In this case, AI is used to capture customer dwell times and activities on their site. This information is stored in the company’s database and eventually used to come up with personalized offers based on the time that they have spent on the site, as well as on the specific product that they browsed during their visit. This increases the likelihood for the user to be converted into an actual paying customer.

More Efficient Sales Process

eCommerce companies are also using AI to create a more efficient sales process. In this case, AI is integrated into the company’s customer relationship management (CRM) platform to create a strong message that reaches their target audience at the right time. If their CRM system can address common queries and solve the issues of customers promptly, then the burden will be lifted off the sales team, making them more efficient and available to focus on other matters. Keep in mind that people are more likely to go for brands offering a simplified and efficient sales process rather than having to deal with complex steps only to get the product that they need.

Personalized Customer Experience

AI is also used by eCommerce companies to offer a more personalized customer experience. The digital experts behind Oracle CMS suggest the use of a multi-channel approach to cover more customer touchpoints. This will provide eCommerce companies with reliable data that they can use to analyze how their customers are interacting online regardless of whether the user is leveraging a mobile application, accessing a website, or reading an email campaign. The AI engine will continuously monitor these channels to create a universal customer view.

AI is also capable of providing a personal touch with the use of a chatbot or a specific computer program designed to simulate a human conversation. Chatbots are considered a cost-effective solution in providing customer service, which is why you will likely find them integrated into a shopping cart. In this way, it can automatically retrieve information such as product details and shipping information that it can use to provide accurate answers to customer queries.

Another key feature of AI is that it is used to improve dialogue systems. The reason behind this is that with AI, speech recognition, natural language understanding, as well as prompt question answering, is made possible. If customers are provided with a personalized experience, they are most likely to go for the products offered by that specific brand. For eCommerce companies, this means more sales and a boost in their revenue, making their AI investment worth it in the end.

Availability of Virtual Assistants

There are instances wherein online shoppers would need some form of assistance, and this is where virtual assistants would prove to be beneficial. In this case, eCommerce companies leverage the services of AI-powered virtual assistants integrated with natural language processing technology to enhance their ability to interpret the context of what the user is saying. Thus, these virtual assistants prove to have a significant impact on how customers continue with their purchase.

In parallel to virtual assistants, AI is also used by eCommerce companies to bring forth virtual personal shoppers for the convenience of their customers. These virtual shoppers are powered by natural language processing technology that can process voice commands. With an added convenience offered, this process may be preferred by more customers. As a result, an eCommerce company has a better stand when it comes to increasing its revenue.

Deal with Fraudulent Reviews and Counterfeit Products

One of the factors that decrease the potential profit of an eCommerce company is the rise of fraudulent reviews as well as counterfeit products. Thus, they are now leveraging AI to deal with this by giving more weight to verified customer purchase reviews. AI also adds a layer of protection by adopting machine learning algorithms to spot counterfeit products.

AI serves various applications, and it has already made its way to the eCommerce industry. Aside from offering a customer-centered search and providing high-quality leads, AI also paves the way for a more efficient sales process and a personalized customer experience. AI is also used to empower workers or make virtual assistants available. It also proves to be beneficial in dealing with fake reviews, as well as counterfeit products. All these prove to be beneficial in boosting the revenue of various companies in the eCommerce industry.