Who says a Magento-based eCommerce store is bound to succeed any and every time? With the increasing technological advancement, there are a plethora of eCommerce stores that are found to be falling short of profit. If you are facing the same, then you have stumbled upon the perfect post that emphasizes how a small change in the approach can bring success and prosperity. To be precise, incorporating modern and sci-fi technology such as artificial intelligence and machine learning can have a significant impact on your eCommerce business.
Though the concept of AI is not very new, In fact, you must have heard that this technology has been shaping several industries across the globe since the mid-twentieth century and assisting in bringing a revolution like never before. The following post provides an appropriate dystopian view of what artificial intelligence is doing right now (why it is grabbing the headlines on a daily basis) and what it is highly capable of, especially in the eCommerce store.
Artificial Intelligence in the eCommerce Realm
It may quite interest you to know that Andrew Ng, computer scientist, and Coursera was one of the founders of the concept of artificial intelligence. And see where it is leading to? Some of the best examples of artificial intelligence are the facial recognition feature in our smartphones or tablets, self-checkout cash registers, also when you get smart notifications about your style of apparel and accessories (based on your purchase history), security checks at the airport, and so forth. Artificial Intelligence has become a core aspect of everything and eCommerce is definitely not an exception.
According to Gartner, it has been proven that those businesses that have incorporated artificial intelligence for their eCommerce venture have found a sudden increase in sales by 270%. It’s insane and pretty intimidating, right? Now in today’s times competing in the retail industry and that too without having a Magento-based eCommerce platform is a big No-No. However, there is no point in managing an eCommerce platform that doesn’t help you in gaining profits at regular intervals and that’s when artificial intelligence comes into the picture.
Humans these days are immersed more in technology than themselves, and that can be pretty beneficial for e-commerce businesses. All you have to do is start embracing the online market and try looking out for more amazing opportunities to enhance sales and increase profits.
Earlier what happened was, that humans were compelled to go through tons and tons of data and find crucial discrepancies within the system or the procedure and this used to take ample time, effort, and money. Fortunately, all these worries and issues have been resolved with the dawn of AI technology. The tech offers speedy results and of course, it turns out to be pretty much accurate. Since AI never gets tired needs sleep, or gets distracted, the scope of issues and errors turns out to be pretty low.
More than often, Artificial Intelligence nowadays is pretty much used to predict shopping patterns depending on the recorded customer data, chatbot services for an instant reply to satisfy all the basic needs of the customer, personalized services to end users, and a lot more! In fact, it has been observed that 1 out of 5 consumers are willing to purchase goods and services just because of these perks offered by AI, i.e. they get instant replies via chatbots, receive personalized services, and whatnot! Now we will exactly see how Artificial intelligence is transforming the e-commerce industry.
The Impact of Artificial Intelligence on the eCommerce Industry
#1 Voice Command
One of the best aspects of incorporating artificial intelligence is voice command. The need for virtual assistance and voice commands is increasing at a fanatic pace. So basically what are these? Well, they are more like a type of chatbot that is highly recommendable for language processing and machine learning technologies. Basically, these tools and tech tend to understand what exactly the end user wants and try to provide the same using voice commands. So here customers no longer have to type their queries and they can ask for whatever they want. It’s more like you are talking to Google Assistants, Amazon’s Alexa, Apple’s Siri, and so forth.
More and more eCommerce businesses are trying to use such alternatives instead of humans, though there are a few customer service representatives who do get in touch on special recommendations in case the query is a bit tricky such as if you have returned the product and still not received the refund or if the package received is empty and a lot more. These chatbots try to answer your basic queries such as where is your product right now how much time it will take for your product to reach you or when will you receive the refund, These chatbots can connect you directly with the customer care executive and a lot more.
Unlike humans, these chatbots or voice assistants are available 24/ 7 and have the potential to handle effortless queries. Apart from being answerable to humans, virtual assistants tend to accomplish several other tasks such as product research, managing inventories, and whatnot! With the incorporation of AI in eCommerce, all the tasks become easy to access.
- Voice-based interactions can be easily cracked by natural language processing
- Customers’ needs can be well-addressed when insights and data are deep
- Personalized services are what matters the most in today’s times
#2 Product Recommendations
We are residing in fast-paced times where every now and then, something feels different like never before. So here when your eCommerce store manages to offer personalized products or recommendations, there are pretty high chances your store gets attracted and recommended and of course, an increase in sales and profit, that’s inevitable.
Now, how does artificial intelligence know what we are willing to buy? Well, these technologies tend to go through tons and tons of data in regard to your previous purchases, some of the most searched products, online browsing habits, and a lot more. Is product recommendation beneficial?
- More and more possibility to retain customers
- Enhanced customer retention and sales
- Offering the best possible personalized shopping experience
Also, here the concept of smart search can be taught. You see they can enter the keyword and based on that relevant products can be shown. Some of the common yet crucial elements of advanced search or smart search include faceted search, navigation, autocomplete, recommended product listings, recent searches, etc. In fact, eCommerce businesses are making the most of image annotation to deliver personalized and user-friendly search experiences. And this is all done with the help of behavioral data.
#3 Managing Inventories
Another crucial aspect to take into account is managing relevant inventories. Now you are running an eCommerce store, managing inventories is a pretty basic necessity. Here you must be able to fulfill market demands without increasing idle stock.
- Step one- To keep researching the products
- Step Two – Taking care of logistics
- Step Three – Enhancing existing products
- Step Four – Defining new products
- Step Five – Incorporating Machine Learning
Do you really think that inventory management is taking care of all the current stocks only? Of course, not! By incorporating artificial intelligence in inventory management systems, it turns out to be simply possible not just to maintain stocks but to come to necessary conclusions. For example, these technologies assist businesses in looking over the previous years, what can be anticipated in the upcoming years, looking out for any supply-related issues, and whatnot!
In addition to inventory management, artificial intelligence can also be preferred for managing the warehouse and that too seamlessly. So you see the future of AI in eCommerce seems to be pretty rosy and worth considering. In fact, it is estimated that soon AI robots will be used to retrieve stocks 24/7 with quick dispatching of ordered items and taking care of current stocks, etc.
Further below I would like to focus on how incorporating artificial intelligence in your Magento-based eCommerce store can be beneficial.
Benefits of Integrating AI in Your eCommerce Store
We all are well-acquainted with the fact that Magento turns out to be one of the most widely used eCommerce platforms across the globe. And AI is the new block in the town, incorporating this old chap and new chap, it is quite possible to reach new business heights. The global AI market is expected to reach $23 billion by 2027. This can be a real game-changer for you! Let us find out how.
#1 Retargeting market leads
One of the best and most obvious benefits offered by artificial intelligence technology is it provides great assistance in retargeting market leads. You see it has been observed that most eCommerce stores tend to lose out on a large chunk of potential customers’ supply. This can be because they forget to take regular follow-ups. As a result, sales leads can fall off unexpectedly.
You see here artificial intelligence or machine learning technologies can enhance your store to such an extent that it helps in gathering all the relevant information on customers and then propose which ads should be shown and which shouldn’t, do you need to offer any type of coupons, promotions and so forth. Now, it is a pretty well-known fact that AI is used generally by retail stores in the form of facial recognition. But have you ever wondered how it is used in web stores?
Well, an eCommerce store should analyze things a plethora of times just to understand what your customer is looking for. What I mean to say is that if the customer is looking for a particular item or product, let’s say kitchen appliances or car accessories, you can push sales in relevance to that category. So whenever the customer logs in, you can offer a huge discount. And of course, they are more likely to buy from your eCommerce store.
Magento is one such kind of eCommerce platform that comprises a huge range of extensions to gather tons of information and use it precisely. Such as tracking the purchase behavior, drawing relevant insights and of course, assisting them in making a seamless purchase. On and all, you can offer a personalized shopping experience for the end users.
#2 High-end Security
With security breaches happening every now and then, it has become essential for businesses, especially eCommerce stores, to consider high-end security and protect the store featuring lots and lots of customer information and data from the bad guys. Now I am sure you must have come across several eCommerce stores that worry a lot about their eCommerce credit score.
Well, the credit score is high when the eCommerce store has already met different security standards and fraud prevention capabilities. You see, of course, one cannot put a stay on the increasing frauds and issues but what we can do is at least ensure a safe shopping experience for the end users.
It is all about being safe rather than secure. In addition to enhanced security, another crucial benefit offered by incorporating artificial intelligence technology within your Magento store is detecting fraud which turns out to be extremely easy and worth considering. Here with the help of different behavioral analysis models, artificial intelligence makes it extremely easy for one to recognize as well as beware of conducting interaction with unwanted and suspicious-looking websites. So keeping a close eye on sensitive transactions is a must.
#3 Product Try-on!
The concept of try before you buy seems to have recently uplifted and that too all across the globe. And if we see this from the consumer’s point of view then it is very beneficial. Artificial intelligence technology assists end users to try the product before they click on the buy button. In other words, if you are buying a dress, you can see how the dress looks on you, how it will fit, and that too within real-time.
For instance, Lenskart and IKEA are the best examples to take into consideration here. You see after both companies have integrated this try-on concept, a sudden rise in sales has been observed. So product try-on turns out to be the best use of artificial intelligence in a Magento-based eCommerce store.
Final Words
And we are done here! I can simply go on and on when it comes to the usage of artificial intelligence in a Magento-based eCommerce store. After all, here irrespective of your business, you are bound to receive advanced levels of data processing to generate different and relevant business insights. Which eventually leads to a severe increase in regards to profits and sales. So I hope everything was clear and up to the mark. If there is anything that seems to be tricky, feel free to clear your doubts right here in the comment section below.
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