With the application of AI, not only are products linked to the interests of users defined, but the entire inventory and all the navigation within an e-commerce becomes personalized.
It turns out that artificial intelligence is shaping the way we build relationships and, of course, the way we shop. E-commerce is starting to capitalize on all the innovation in artificial intelligence (AI) to craft new shopping experiences which convince the user that, in addition to a transaction, the online store wants to establish a personalized relationship through technology.
Recommendation engines have been providing interesting functionality in online stores for years. The principle is simple and based on an algorithm that analyzes the user’s browsing data within the e-commerce, and with those navigation parameters, suggests products that could be of interest. These are the classic messages (within the web itself or sent via email) such as, “other users like you have also seen this product” or “if you’ve seen this product you may be interested in this.”
Artificial intelligence goes a step further and converts that general recommendation into more personalized assistance for the user; in other words, curated commerce. In essence, curated commerce applies AI to create segments intelligently, understand their preferences, and associate them with a set of products aligned with those preferences.
With this application of AI, not only are products linked to the interests of users defined, but the entire inventory and all the navigation within an e-commerce becomes personalized.
It is as if, upon entering a clothing store, an assistant said, “I know that you are interested in warm colors, so I’m going to show you the latest fashions we have in those colors,” and then proceed to guide us through the shopping experience.
Chats have also been present in e-commerce for a long time, but artificial intelligence again takes the user experience one step further. And this is done through voice devices, voice-based assistants, and conversational chatbots.
Voicee and conversation are defining the relationship between users and brands, and, of course how to shop. Voice assistants, such as Siri or Google Assistant, receive our indications and suggest where to shop. Voice devices, such as Alexa, receive our voice prompts and connect us with digital stores to make a purchase or view the status of an order. And, conversational chatbots are starting to develop personality and a conversational tone that represents the character of the brand.
These conversational chatbots are increasingly important in electronic commerce for two reasons. On the one hand, the application of artificial intelligence allows for continuous learning based on previous interactions, which improves the quality of the conversation. On the other hand, conversational chat influences buying decisions at an e-commerce, especially when the amount at stake is high or the user requires personalization of the product they want to buy.
Artificial intelligence makes it possible to transform a huge amount of data into valuable information to predict user behavior accurately. One immediate application in electronic commerce is creating purchase patterns to effectively anticipate the likelihood of an online sale.
But this predictive ecommerce goes beyond the prediction of sale and makes it possible to more accurately predict demand and manage inventories. Generally, inventory management techniques are based on retrospective analyses (which are corrected with additional parameters) to make stock predictions.
Definitely, the combination of big data and AI takes electronic commerce to the next level, as it allows brands and retailers to have real-time information about purchases in their online stores to manage their inventories more accurately.
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