Online retail sales have steadily increased over the years, and they are projected to make up 12.9% of retail sales in 2017.
Nearly half of those sales will come from Amazon. Pushing smaller companies to use personalized merchandising methods powered by AI technologies to create unique shopping experiences for customers to compete.
Over the next few years, innovations powered by AI will fundamentally change e-commerce in three ways according to Itai Elizur :
Increasing Sales Processes Efficiency
Due to the rise of social media techniques have become increasingly sophisticated over the last few years.
Social media channels such as Facebook and Instagram profoundly influence people’s behavior, and retailers are taking advantage of these channels to reach their potential customers.
New tools are popping up like Yotpo, a popular tool for digital brands, making it possible to collect, curate, and manage many different forms of user-generated data. Analyzing the vast stores of user-generated data on social media can increase sales and provide customers with organic ways of discovering products.
Innovative companies are also using personalized merchandising powered by AI to streamline their customer experience.
For example, The North Face, an activewear brand, uses voice input technology to customize their customer’s experience by asking them for information. Users can tell them how, when, and where they will use the item they are looking for. Thus allowing North Face to use this information to suggest more relevant products to their customers. Visit fundacity.com to know more about Sentient.
Inventing New Ways to Search
Currently, the vast majority of people search the web using text-based searches, but new search methods are becoming popular based on new AI technologies.
For example, visual searches that evaluate an image given by the customer and then use that image to find similar products are catching on.
Furthermore, according to ComScore 50 percent of all web searches will be voice-activated by 2020. Voice-activated searches have gained popularity through AI companions such as Siri and Alexa. These searches have revolutionized e-commerce forcing retailers to restructure their sites to accommodate them.
Taking Personalization to New Heights
Recently, retailers have begun to take advantage of the vast amounts of data available about customer patterns such as purchase habits, likes and dislikes, and other behavioral metrics.
By analyzing this data using intelligent algorithms, they have been able to gain new insights leading them to create better customer services.
The technology provides a way for brands to give customers exponentially more personalized shopping experiences.
New personalized merchandising techniques made possible by AI will level the playing field between large corporations and smaller companies in the future.