Once upon a time, artificial intelligence was science fiction. Captain Kirk talked to a computer or robots that gained sentience, and we saw it as a crazy fantasy scenario that didn’t exist in our time.
However, science fiction is quickly becoming science fact as today’s technology catches up to those fantastical elements that we could only once dream about. We saw how AI, Virtual Reality, drones are disrupting huge industries and changing how things are built and how people interact. AI is revolutionizing the world, and businesses are going all-in on bringing this new technology to customers.
Artificial intelligence is particularly useful in the world of eCommerce. Online stores use this smart technology to create a more streamlined customer experience and increase brand awareness and customer loyalty.
But it’s one thing to say that you’re going to start implementing AI tech into your eCommerce store. It’s another thing altogether to actually make it happen.
In this article, we’re going to walk through a few helpful ways that you can leverage AI technology for your eCommerce business, leveraging your data to boost your bottom line.
Why should you use AI for your eCommerce business?
Up to 34% of sales and marketing leaders believe that artificial intelligence is the biggest game-changer in the neverending quest to improve the customer experience. That’s why 51% of eCommerce professionals have implemented automation software in their businesses.
Modern audiences want personalization and ease of use from the companies they frequent. Artificial intelligence technology can help you create a personalized experience at scale for your ideal customers to enjoy.
Doing this will not only draw customers to your business, but it will also help you retain those customers well into the future. Increasing your customer retention rate by just 5% can increase profits by anywhere from 25% to 95%.
The more you can automate your business, the easier it will be to run. You’ll be able to market specifically to every customer, regain lost business, and answer simple customer questions, all with limited manpower.
How to use AI effectively for your eCommerce business
Retarget bounced customers
You might be drawing a lot of attention to your eCommerce store, but not everyone who shows up will buy from you. The number of customers who actually place items in a shopping cart and then don’t follow through on a sale is shockingly high.
On average, just under 70% of shoppers abandon their carts. A huge amount of potential business might have been pulled away by some real-life distraction in a customer’s life that causes them to forget about a purchase.
Using marketing automation, you can automatically follow up with these people and send them email reminders that they still have items only a few clicks away. Using AI, you can even send personalized promotions to these shoppers, offering them a percentage off of their purchase if they return to your store and complete the checkout process.
The beauty of AI is that it lets you utilize user data at scale. You don’t have to personally follow up with every person who leaves their cart empty, leaving your staff free to tackle more complicated or important matters.
More personal email marketing
Email marketing can be effective for eCommerce companies. And nothing helps an eCommerce business succeed quite like personalization. Across all industries, the average email marketing open rate in 2022 is 21.5%. That’s a 3.5% increase from 2020, so the numbers are swinging upward.
With AI email technology, you can automatically segment your audience and monitor progress with smart analytics. You could even use an email finder tool when trying to obtain new leads.
Use chatbots and virtual assistants
When people think about artificial intelligence, they often imagine robots that can interact with us. Chatbots and AI assistants like Siri, Alexa, and Google Home can answer our questions, discern meaning from voice commands, and offer assistance with baseline questions that don’t require the attention of a live human being. Many companies have started using Chatbots and virtual assistants to deliver quick and better customer support to their customers.
Chatbots are a major component of customer service satisfaction, and that’s the backbone of customer retention. A massive 81% of customers say that a positive customer support experience makes them more willing to return to a company for another purchase.
One of the chief complaints regarding customer service is long hold times. Obviously, your workforce is limited, so during busy hours, you simply can’t answer every request instantly.
However, with chatbots and AI assistants handling simple queries like order statuses and refund processes, you’ll be able to keep hold times to a minimum by reserving human support representatives for complicated issues that require a human touch.
Provide personalized recommendations
Customers want eCommerce personalization from the companies they do business with. This can be as simple as personalized recommendations created by an AI system based on their shopping habits.
Your customer base is undoubtedly diverse and has different needs, issues, and budgets. By analyzing how these customers shop and interact with your store, an AI system can provide them with items they’d find useful, or those that people with similar interests have also purchased.
The system can also take browsing into account when creating these recommendations. If your customer was recently searching for insulated coffee mugs but didn’t buy them, the system can alert them when you’re having a sale on these items.
This personalized shopping experience makes eCommerce customers feel more at home, as though the entire store was created just for them.
Artificial intelligence is the future of the eCommerce industry. By embracing this new and evolving technology, we can create a more efficient, helpful, and personalized shopping experience for customers in all different demographic segments.
Check out how you can design the ideal eCommerce platform for your business.