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How E-Commerce Businesses Use AI to Improve the Online Shopping Experience

DZone 's Guide to

How E-Commerce Businesses Use AI to Improve the Online Shopping Experience

See how e-commerce businesses use AI to improve the online shopping experience.

· AI Zone ·
Free Resource

Online shopping is on the rise as it’s convenient to shop from home and get products delivered. According to NPR, 92 percent of American consumers make purchases through ecommerce, and that number is only increasing. 

When it comes to online shopping, consumers have high expectations about how their experience should be. They’re looking for quick, easy solutions to their problems from brands who care about their buying motives. 

Customers today also want to feel understood by the brands they’re investing in. Failure to show that results in fewer conversions and weakened customer relationships. With so much readily available competition, they know they have various options to choose from. 

Thanks to artificial intelligence, it’s easier to understand your target audience and tailor online shopping to their needs. It analyzes and uses data to create a personalized experience, tends to customer needs, and solve their problems.

Here are three ways that ecommerce businesses use AI to improve the online shopping experience and increase conversions. 

Understanding Purchasing Decisions

For any business to make sales, it has to understand the motives of its customers. Without understanding their pain points, wants, and interests, it’s challenging to cater to their interests and keep them coming back.

When brands understand their audience’s purchasing decisions, it’s easier to plan the next step in their strategy. AI uses text analytics to find patterns in consumer behavior, such as how they communicate with a brand and search for specific products.

User feedback also gives AI the information it needs to understand how consumers’ emotions influence their purchasing decisions. How people feel when they buy from a company says a lot about why they’re shopping there in the first place. 

Personalized Product Recommendations

When a business goes the extra mile to tend to customer needs and listen to what they want, it increases sales and generates leads. Users may not even know what they’re looking for until a personalized recommendation pops up and persuades them to buy.

In the last year alone, businesses have lost $756 billion because of poor ecommerce personalization. Failing to send targeted marketing messages to consumers shows them you don’t understand their needs and will convince them to shop elsewhere.

Artificial intelligence analyzes customers’ history, past purchases, and behavioral patterns to make relevant, personalized product suggestions. This information allows you to create targeted campaigns that increase sales and boost ROI.

Round-The-Clock Support

Because the internet makes instant access to online businesses possible, consumers have higher expectations for customer service. A whopping 80 percent of consumers quit shopping with a company due to poor customer experience. They want brands to be accessible 24/7 to assist with their problems and provide speedy solutions.

Luckily, AI makes round-the-clock support possible for ecommerce businesses no matter what their hours are. Using preprogrammed algorithms and natural language processing (NLP), artificial intelligence helps customers discover relevant products, change orders, book appointments, and much more. 

Through chatbots, businesses can create friendly, pleasant conversions with customers while guiding them through the sales funnel. Chatbots make real-time conversations with global customers possible while tending to their needs. Conversational AI makes it easy to form free-flowing conversations that feel natural and authentic.

Over to You

Now more than ever, businesses need AI to automate their processes, send timely marketing messages, and cater to consumers’ specific needs. Shopping online brings customers a whole new experience where they can purchase at the click of a button and converse with a chatbot to receive information. There are endless possibilities as to what AI can do for ecommerce businesses looking to improve the customer experience.

Topics:
ai, ai in online shopping, algorithm analysis, artifical intelligence, natural language processing, natural language understanding, nlp, nlu, text analytics

Opinions expressed by DZone contributors are their own.

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