4 Effective Ways To Incorporate AI Into Your Ecommerce Business
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Published on: 22 June 2023
Last Updated on: 06 October 2023
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Digital transformation is constantly unlocking new opportunities for ecommerce sellers. Artificial intelligence (AI) in particular, has become an essential technology for ecommerce businesses in recent years.
AI has the potential to transform everything from ecommerce customer service to the strategies businesses use to forecast and optimize sales. By 2032, experts predict the market value of ecommerce AI will reach around $45.72 billion worldwide.
What’s more, one study found that 81% of ecommerce businesses are actively working on, or thinking about embedding AI into their processes. The question is, with so many opportunities to explore, how do ecommerce store owners ensure they’re investing in the right AI strategies?
Here are just 4 of the most effective ways online sellers can leverage artificial intelligence in their businesses.
1. Preserve and Protect Customer Data
Business leaders in many industries use AI tools and other resources to help them collect and process customer data. The ability to assess and leverage data is becoming increasingly important, now that 56% of customers are looking for personalized online experiences. However, collecting data is just the first step. Companies also need to ensure they’re preserving and protecting the right information.
According to the Ecommerce Times, data breaches among online stores set a new record in 2021, with nearly 6 billion accounts affected. To adhere to changing customer expectations for security, businesses need to take a more advanced approach to security.
AI can be an incredibly useful tool for improving data security. Automated AI systems like Kount can rapidly evaluate ecommerce platforms, spotting instances of possible fraud or suspicious activity. They can even notify business leaders of security errors and breaches in real-time, allowing them to respond faster to threats.
AI can also be used in authentication methods used to secure accounts. For instance, banks are now using biometric authentication powered by AI to reduce the risk of fraudulent activity online. Around 75% of IT leaders now say using AI will help to enhance security standards for every type of business.
2. Enhance Marketing Content
Content remains an essential part of the online shopping experience. The copy produced for product pages, online advertising campaigns, and content marketing strategies is crucial to earning sales. However, creating personalized, intuitive content can be a complex, time-consuming process.
Generative AI tools, such as ChatGPT can help with this process. These solutions can automatically produce everything from product page copy to PPC ad copy in seconds. Other tools like SurferSEO can also offer recommendations on how to enhance website content for SEO purposes.
Around 37% of marketing and advertising professionals say they’re using generative AI to help with content creation in 2023. Additionally, studies suggest generative AI’s value in the ecommerce sector will soon reach $5.920 trillion, driven by the rise of new algorithms and APIs.
Technologies like HVAC eCommerce help firms expand their digital presence along with streamlining their eCommerce operations. With the help of such AI advancement, E-commerce companies can create:
- Product descriptions: Natural language generation algorithms can analyze product data and generate intuitive descriptions for ecommerce websites. They can even suggest which features and benefits should appear on a description to increase sales.
- Product images: Generative AI tools can enhance or edit product images, integrate new models into pre-existing stock photos, or create valuable slide shows. This allows companies to create more unique imagery for online stores.
- Shopping ads: A generative AI platform can also create ad campaigns or marketing copy for businesses that need help drawing attention to products and promotions. Companies can even train bots on what language or tone of voice to use.
3. Improve Financial Planning
Ensuring growth in the ecommerce world requires more than just a commitment to producing great products or developing strong advertising campaigns. Exceptional financial planning is necessary to help businesses take advantage of opportunities for revenue growth as they arise.
Financial planning tools infused with AI can provide business leaders with powerful insights they can use to analyze trends and fluctuations in sales, forecast future sales opportunities, and even examine potential product trends. The right AI tools can even help companies determine how to adjust their pricing based on supply and demand when to discount products and more.
8fig, for example, offers financial planning tools for ecommerce businesses that use AI to help dissect their potential revenue into specific COGS categories. It can also help online sellers compare their performance with other similar ecommerce brands, examine growth over time, and forecast revenue opportunities.
The more data companies have on their sales and market trends, the more they can adapt their strategies to optimize their cash flow, increase sales, and reduce customer acquisition costs.
4. Transform Customer Service
Achieving success in today’s ecommerce industry also requires a clear focus on exceptional customer service. 66% of modern customers expect companies to understand their needs and deliver fast, efficient, and personalized service. However, adhering to customer expectations can be difficult, particularly if you have a limited number of customer service reps.
AI can help to address this problem. Companies can use chatbots integrated with generative AI and conversational tools to deliver automated self-service to customers 24/7. These bots can proactively reach out to customers with product suggestions based on their insights, upsell and cross-sell customers at the right moment, and deliver rapid assistance with arising issues.
Some chatbots and customer service tools, like BotPress, are infused with AI and can even use historical customer data to deliver more insightful guidance and support. They can also collect crucial information from each service interaction, giving businesses more insights into the full customer journey.
As AI becomes more advanced, business leaders can even implement AI solutions for self-service into multiple channels, from social media to messaging apps, and even voice-based contact centers.
Unlocking the Power of AI in Ecommerce
Artificial intelligence is having an incredible impact on virtually every business. In the ecommerce world, companies can access AI to unlock a variety of opportunities to improve sales, reduce operational costs, and even boost customer retention.
Of course, like any innovative technology, AI needs to be implemented into the ecommerce landscape with care and caution. Companies need to ensure the solutions they access aren’t just tailored to their specific business goals, but also that they’re scalable, secure, and easy to use.
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