The personalisation of retail
We are encountering artificial intelligence (AI) on a daily basis without realising it; for example, in healthcare, transport, toys or banking. Artificial intelligence is also regularly used for smartphone apps and online services. The recommended videos, which can be seen on Netflix or YouTube, as well as music streams at Spotify or Apple Music, were individually selected for each consumer with the help of the selection and content from previous use.
The same applies to the suggestions that can be seen when visiting online merchants. Goods displayed at the bottom of a particular web page have all been carefully selected using AI algorithms and calculations for each individual consumer and are based on analysis of data collected from online activities.
What is special about AI in e-commerce is that customers have questions about their products and they want to receive quick precise answers. Automation and AI in e-commerce can help here directly in the preparation of the data as well as in the active delivery of the data. It then seems as if a personal assistant is available in real time for every single person who visits a website. According to Econsultancy, personalization has increased significantly over the last 4 years and is now one of the top 3 factors in online commerce.
This brings us to the core aspect of current online trading: personalisation enables products to be sold better and faster online. If someone looks at certain table lamps or jeans, for example, these articles will accompany the consumer in various variations through the subsequent online daily session. This is only possible if suitable and extensive article data is available. Although this development is not new, it will accompany potential buyers even more intensively in the future with online content according to their personal preferences.
This level of personalisation increases customer experience and helps retailers increase sales. It is the ability to quickly assemble, analyze and present large amounts of data. AI may be able to do this better.
Take a look at the jeans again. AI breaks the jeans down into hundreds of individual elements, such as the shape of the stitches, the height of the pockets, and ornaments; all the subtle things that tempt consumers to buy the products. Retailers can capture these search terms in real time and explore what is relevant to the consumer to increase the product information content. Equipped with a product database, after researching the customer’s needs, AI is able to present appropriate suggestions that lead to sales as well as additional sales. The data analysis of the search results optimizes findability.
This technique can be used with any product that has subtle visual differences from which AI is derived. From jackets to sneakers or furniture. AI will evolve, refining the models in the algorithm to get more accurate search results. As long as an e-commerce retailer’s content is powerful and all possible data attributes are prepared for consumers and prospects. This state can be achieved with data preparation, data cleansing and data enrichment. Advances in AI technology enable retailers to achieve new and exciting benefits in personalised customer experiences to increase profits.
Furthermore, this means that customer experiences are mainly made possible by AI. Through suggestions that accurately predict customer preferences and search queries that lead to items that the consumer is actually interested in. What’s more, consumers do not just ask for suggestions, they expect them. Retailers need to find out what each consumer is most likely to buy when they visit the site. The result is a dynamic website structure, redefined for each customer. The individually compiled offers help to achieve more sales and the online purchase is less frequently cancelled.
Consumers no longer compare an online store exclusively to a similar online store because it has the best consumer experience ever in each sector. Since more than half of purchasing decisions are based on the customer’s experience, delivering more detailed and richer customer experiences is a matter of all or nothing. This makes sense in a world where consumers have access to virtually unlimited information and alternative options. Since there are many ways to provide consumers with improved experiences, many brand companies use artificial intelligence.
AI prepares product databases and internal shop systems to find products online. Most online buyers use the search function on e-commerce websites to do this. Challenge: Because consumers don’t always search for the right word or make spelling mistakes, retailers can’t win over consumers with a high purchase intention.
A quarter of all e-commerce search queries are misspelled. This leads to sales losses of several million euros, so AI comes into play again. With AI-based visual search, consumers don’t have to bother to describe what they want to buy. By applying image recognition and natural language processing to search functions, AI helps retailers identify relevant keywords from a photo and make relevant searches. For example, the world’s largest online marketplace, eBay, has used AI to quickly identify and associate images uploaded to the app using visual similarities. Traditional text-based keyword searches are no longer required to find the right product.
For retailers, it is more difficult than ever to deliver experiences that meet or exceed customer expectations. Supported by AI, e-commerce can provide a differentiated experience that your customers will remember. Databases need to be tidied up and enriched, so consumer interaction works much better. It is important for retailers to understand that AI has become a part of our world and that it makes sense to use AI for their own benefit.