Artificial Intelligence for online stores: create a personalized experience
Artificial Intelligence is a set of technologies that is transforming numerous areas of the business world, including electronic commerce. Thanks to the role of AI, companies can improve their business performance and offer a more personalized experience to their customers.
Data analysis is one of the keys to decision making in your eCommerce . AI can help you greatly to achieve this goal. If you are still not sure how to take advantage of Artificial Intelligence in your online store , read this post and you will discover what it consists of and how it can help you improve the results of your eCommerce.
What is Artificial Intelligence?
Artificial Intelligence is an intelligent system that works independently of the programmer and is capable of generating responses similar to how a human being would do. Through advanced algorithms, Artificial Intelligence is capable of identifying and recognizing objects in images, understanding human language through Natural Language Processing, formulating predictions, describing complex scenarios or offering suggestions for decision making.
AI is usually accompanied by Data Science, since developing Artificial Intelligence models requires the provision and processing of thousands of data. This data is what allows machines to learn by themselves, through different types of algorithms, which is known as machine learning .
Understanding the potential of Artificial Intelligence for marketing and sales is key if you want to understand your business and develop actions that allow you to improve profitability and optimize the customer experience in your eCommerce.
How does Artificial Intelligence help offer a personalized experience to your customers?
Every functional online store tends to accumulate a huge amount of data over time. This data provides us with knowledge about user behavior, their interests and their actions on our website. Artificial Intelligence can analyze this data to formulate models that predict user behavior, so that we can optimize our actions to maximize store performance.
There are several ways in which Artificial Intelligence can help an eCommerce offer a personalized experience.
1. Product suggestion with Machine Learning
Product recommendation is one of the ways in which an online store can increase purchase receipts. Generally known as cross-selling, the sales technique aimed at suggesting complementary products to the one the customer is going to buy; and up selling to the recommendation of similar products, but in an improved version or at a higher price.
It is common for suggestions for related products to appear on the product sheet itself, although they can also appear at check-out. Generally, aspects are taken into account such as whether the product belongs to the same category, or uses the same keywords, or we have used some functionality to link complementary products.
Product recommendation systems are usually automated, and do not take into account the factor of the user's particular interests. However, through Artificial Intelligence we can offer personalized product recommendations , based on the customer's profile, their purchase history and a sum of data that gives us information about which products may be of most interest to that customer. For example, through AI you can find out which items have been purchased together the most times, in order to offer that recommendation and increase the chances of increasing the purchase ticket.
Shopify has a module ( AI Product Recommendations ), which offers product purchasing suggestions based on the customer's search history, as well as personalized smart search.
2. Chatbot with virtual assistants
Another of the great advantages of AI applied to eCommerce are chatbots or virtual assistants. These Artificial Intelligence systems allow the user's customer service to be personalized through an automated chat, where a robot answers the questions asked by the user.
The great advantage of chatbots is that they learn from the data entered, so the chatbot can be trained beforehand to offer a better customer experience. Thus, the chatbot will offer highly precise responses to the user, which will allow them to be assisted in less time, even if an agent is not available.
3. Augmented Reality and Artificial Intelligence Filters
More and more online stores are adopting technologies that allow customers to try the product remotely. This is the case, for example, of many cosmetic stores, which, through an augmented reality application, allow you to visualize how a certain type and color of lipstick or makeup would look on you, through your mobile phone camera, in a similar way to How Instagram or Snapchat AI facial recognition filters work.
4. Visual search engines with product suggestions
Artificial Intelligence is increasingly present in product search engines. These are not ordinary search engines, they can recognize the image of the product you are looking for and locate other products with similar images, also offering them in instant search suggestions.
The search engine of an online store is one of the most important elements to promote a good user experience and improve navigability. A search engine with AI that offers a differentiated experience will help the user find the product they are looking for more precisely.
5. Inventory adapted to demand
Although these are AI models aimed at improving logistics and inventory management , customers can also obtain a personalized experience. This is because the online store can adapt and optimize its stock levels based on AI models for predicting demand.
In this way, customers could find the products they need, and your store could prevent situations such as stockouts, due to high demand for that product at a given time. The great beneficiary is the customer, who can find the product available when they need it, without your eCommerce being overwhelmed by circumstances, especially during times of high customer volume, such as Christmas or Sales.
At Webmefy we advise you so that your online store can use AI solutions to boost its performance. If you want to know how we can help you increase the conversions and profitability of your eCommerce, we invite you to contact us now .