How can I increase online sales? Before giving up on your business, make sure you have done everything you can to attract customers. Beautiful images and Instagram ads are no longer enough. Online sales are increasingly relying on artificial intelligence (AI), which boosts revenue and enables businesses to achieve significant growth.
According to a report by global consulting firm McKinsey & Company for 2021, AI-enabled personalized offers in e-commerce increase revenue by 10 to 15 percent. Boston Consulting Group, in its report on AI-driven personalized shopping, states that companies can increase growth rates by 6 to 10 percent.
How can you use artificial intelligence in your business? Which platforms are suitable for that? What are the other benefits of AI in e-commerce? And what exactly is artificial intelligence? We will provide detailed answers to these questions in this article.
What is Artificial Intelligence?
Artificial intelligence is a complex system. It involves computers, devices, and machines programmed to think, learn, and perform tasks like human intelligence. AI includes developing computer systems and algorithms that process vast data, recognize patterns, and make decisions. It finds applications in navigation, face detection, virtual assistants, and online payments. AI’s uses extend to various industries like business, finance, healthcare, manufacturing, transportation, and online commerce.
Why Should AI Be Used in e-Commerce?
As mentioned earlier, artificial intelligence can increase revenue in online commerce. But how is this achieved? A range of AI-based functions can be applied in e-commerce, individually or collectively, to contribute to sales growth.
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Personalized Recommendations
AI algorithms can analyze large amounts of customer data, including browsing history, purchasing behavior, and demographic information, to provide personalized product recommendations. By understanding customer preferences and behavior patterns, e-commerce platforms can offer relevant and tailored suggestions, increasing the likelihood of conversion and customer satisfaction.
Chatbots and Virtual Assistants
AI-powered chatbots and virtual assistants are used to provide customer support and answer common questions. These bots use natural language processing to understand and respond to customer inquiries, enhancing the overall user experience and reducing the need for human intervention.
Advanced Search
AI algorithms enable more sophisticated search capabilities, allowing customers to quickly and accurately find products. Natural language processing and machine learning techniques improve search accuracy by understanding user intent and context, even when using ambiguous or incomplete queries.
Fraud Detection and Prevention
Artificial intelligence algorithms can also analyze vast amounts of data to identify patterns and anomalies associated with fraudulent activities. By monitoring user behavior, transaction data, and other relevant variables, AI systems can detect and prevent fraud in real-time, minimizing losses for e-commerce businesses.
Inventory Management and Demand Prediction
This function can help optimize inventory management by analyzing historical sales data, market trends, and external factors to accurately predict demand. This enables businesses to maintain optimal inventory levels, reduce stockouts, and streamline their supply chain processes.
Price Optimization
Thanks to artificial intelligence, it is possible to analyze market trends, competitor prices, and customer behavior to dynamically adjust product prices. By using machine learning models, e-commerce platforms can optimize prices to maximize profit, increase sales, or achieve specific business objectives.
Image and Voice Recognition
Image and voice recognition technologies powered by artificial intelligence enable visual search and voice-based shopping experiences. Customers can upload images or use voice commands to find products, enhancing convenience and usability.
Customer Sentiment Analysis
AI can analyze customer feedback, reviews, and social media data to understand customer sentiment and extract valuable insights. This information can be used to improve products, enhance customer service, and refine marketing strategies.
AI-Based Platforms That Boost Online Sales
There are several popular platforms you can use for your online store:
Jasper
Jasper is an AI-powered platform that helps companies increase audience engagement and interest. With this platform, you can create personalized user experiences by highlighting products that a specific customer is interested in based on data. Furthermore, it can contribute to segmenting users into highly interested, less interested, or disinterested categories.
Qubit
If you have sufficient e-commerce and sales experience, you know the importance of delivering the right message or product recommendation to an interested customer at the right time. Qubit is another application that enables personalized user experiences. By utilizing artificial intelligence, Qubit can generate real-time product recommendations based on individual preferences and customer behavior. These recommendations are designed to increase conversions, cross-selling, and overall user experience. Additionally, Qubit AI algorithms allow businesses to test and optimize various elements of the website, such as layout, colors, and calls to action, to achieve better results.
Zeta Global
Another platform for optimized customer relationship management is Zeta Global. It has extensive marketing potential, guiding interested customers through the entire marketing funnel, from their first contact with your products to purchase and customer retention. It provides tools for customer segmentation, lead management, mapping the buyer’s journey, and personalized messaging.
Syte
Syte is an AI platform that has recognized the problem of lengthy and tiring product searches and effectively solved it. It offers visual search services based on image recognition. With this platform, customers can search for products by taking pictures, uploading images, or describing what they are looking for in natural language. Artificial intelligence algorithms analyze visual attributes of images, such as color, pattern, shape, and texture, to identify similar products from the seller’s inventory.
This platform shortens the path to customers and enables faster deal closure. Seamless.AI allows lead generation, which often requires a significant amount of time. By using AI algorithms, Seamless.AI analyzes vast amounts of data from various sources, including public profiles, social networks, and business directories, to identify potential leads and clients. The platform provides accurate contact information, including email addresses and phone numbers, for targeted communication.
Conclusion
With the increasing number of online and offline stores offering the same products as yours, it is becoming increasingly challenging to reach customers. This requires businesses to be more engaged in order to reach and capture their attention. Numerous companies have realized this fact and started creating AI-based platforms to help e-commerce businesses improve user experience, optimize the buyer’s journey, and increase sales.
With a wide range of web hosting solutions and cutting-edge technology, AltusHost provides the perfect platform for businesses to leverage AI-driven strategies and enhance their e-commerce performance. Learn more about the benefits of AI in online commerce and explore AltusHost’s services to take your business to new heights. Visit AltusHost.com to get started today!
