Big Data and AI (Artificial Intelligence) is no longer something that only survives in books and sci-fi movies. Now it’s become a part of routine performance optimization tool in E-commerce.
According to a recent survey of Gartner states that around 85% of customer communications will manage without a man because of innovations in AI by 2020. Moreover, we are able to access a huge amount of comprehensive information, to assist our online businesses to make more informed decisions about our customers, products we recommend and how we will arrange and implement our marketing campaigns. This big data has become a necessary element to many successful e-commerce businesses that look to this information to assist show their future business moves.
Under Armour, Netflix and the North Face are some successful businesses who are using the power of Big and AI to boost income and development for their E-commerce stores. And with its rise in reputation and convenience, both the tool becomes simpler and less costly for smaller online e-commerce startups and businesses to use too.
Impact of Big Data on Customer Online Shopping Behaviour
Big Data is important in developing a shopper profile. Mine data from your online get to see which products are the most well-liked and when your store experiences spears in demand. You can take benefit of this data to devise marketing strategies. For instance, website analytics data might disclose clients are visiting your website looking for a specific product that you don’t have in stock. This is an overlooked opportunity.
A familiar example of how Big Data sometimes disclose unexpected buyer patterns is when Walmart found that shoppers usually purchased beer at the same time as nappies. If you sell pet products in your online store, you may see that clients usually browse cat litter when they purchase cat food, so it is suggested to add a link from one page to the other.
Another example of when analyzing shopper behavior can pay bonus is if you notice that shopper purchases peak during the evening. Taking benefit of peak demand is also a helpful way to divest excess stock at sale prices. You could alter pricing to replicate the point in demand and run your social media marketing ads during the evenings. Anything you can do to make the shopping experience more instinctive is likely to increase customer engagement and sales. In a cutthroat competition, this is always a good thing.
AI Driven Product Recommendation:
A recommendation is usually practiced by E-Commerce companies to assist shopper to locate the best of what they are looking for. Recommendation algorithms work in numerous ways. For instance, Amazon.com recommends its users based on their activities on the website and past transactions. Netflix suggests DVDs in which a user may be attracted by category like comedy, drama action etc. On other hand eBay gathers user reviews about its products which are then used to recommend products to users who have displays like behaviors. And this goes on to change with numerous transformations and combinations in place.
AI Powered Customer Services:
Offering good customer service is important in the E-commerce sector. You require making it as easy as possible for shoppers to contact you to address the issues or ask questions. A huge 68% of e-commerce shoppers discard a brand or website due to its poor customer service, so anything you can do to enhance the UX is going to assist your bottom line. Use Big Data to examine significant metrics such as how long it takes a shopper to get through to your customer service department or get an answer to an email inquiry. Track customer satisfaction levels and monitor delivery times. If you find any issues or recognize features of your customer service where developments can be made, assign more resources to this region and track it closely.
Big Data and AI Driven Personalization – Customized offers:
The same ethics apply to customized offers. Use data to decide a shopper’s buying habits and send them a targeted special discount and offers codes based on previous purchases. Data can also prove helpful to re-engaging customers when they terminate a buy or look but don’t purchase. You can send out emails reminding the shopper of a product they looked at or request them to entice a purchase. eBay and Amazon have this practice down to a fine art.
Big Data Analytics for Intelligent Agent:
Right now, Intelligent Agent negotiation system has become a known tool used in E-Commerce with the expansion of artificial intelligence and Agent Technology. The three main roles carried by this automated agent are:
- Identical buyers and sellers (the purpose of product offerings, search of buyers for sellers and sellers for buyers, price detection)
- Helping transactions (logistics, settlement, trust)
- Offering institutional infrastructure (legal, regulatory)
These agents are completely automated and managing their actions and internal state. They communicate through an agent communication language. Moreover, they not only act in reply to their surroundings but are also able of taking plans like creating their own targets and act to accomplish them, all thanks for business intelligence solutions.
ChatBots – How Smart Bots are Boosting Customer Engagement:
ChatBots provide respond to shoppers as per their requirements, when they require it, without waiting for a long time. Bots can scan shoppers’ online profiles and order records to offer them modified responses to each of their exclusive questions and worries, in real time. Not only do ChatBots offer more customized, timely, and resourceful customer service choices, they also enable businesses to enhance their shopper intelligence abilities. If you have ChatBots scanning your shoppers’ profiles and buying histories on a routine basis, you’ll have a lot of data to use to enhance offerings. You’ll be able to enhance everything from your delivery option to more competitive costing to beat the competition.
Conclusion: It is tough for staying updated with the latest trends in the e-commerce world, but harnessing Big Data and AI can drastically improve your bottom line and assist you to develop successful, forward thinking business. If you haven’t yet tapped into the influence of Big Data and AI, you could be missing out.