AI keys to increase sales in e-commerce | AI in e-commerce #8

Advanced AI technology is profoundly changing the e-commerce landscape. Its operations are becoming more customer-focused, predictable and profitable. With AI, businesses can analyze purchase data and online behavior to understand what drives customers to buy or leave a site. Here are the top five ways for e-commerce stores to leverage the benefits of AI to increase sales.

Applying AI to analyze customer behavior to increase sales

Recognizing customers’ buying patterns is key to increasing sales. As an example, an analysis of purchase history shows that customers who have bought trekking boots are more likely to buy trekking poles or socks in the future. It consists of:

• Analyzing past data – to identify shopping preferences, for example, price range, most frequently chosen brands, as well as the time and channel through which purchases are made or the method of payment,
• Predicting future purchases – offering tailored products based on inferences drawn by artificial intelligence from past data.

By analyzing customer behavior, AI tools for e-commerce can personalize offers, which in turn leads to increased customer loyalty and increased sales. At the same time, understanding what customers are looking for allows for more effective management of a store’s offerings, as well as more efficient inventory management.

Automation of customer service

In the age of digitization, fast and efficient customer service is essential. A consistent customer experience regardless of the sales channel and a seamless transition from communication with an automated system to a conversation with a consultant is becoming the new standard in 2023. The advantages of automated customer service, to which it owes its growing role in boosting e-commerce sales, include:

• Quick response to inquiries – chatbots allow instant contact with customers,
• Resolving problems outside of business hours – automated customer service systems operate 24/7 and, thanks to the use of AI, can resolve up to 60% of inquiries without a consultant,

For businesses, chatbots can significantly reduce operational costs while improving customer satisfaction. An interesting example in the B2B e-commerce space here is the Accenture VIP Chatbot, which operates at the intersection of human and bot customer service. It analyzes transcripts of conversations with existing and potential customers, and then identifies their priorities, allowing for more precise matching of offers.

Even a simple chatbot on the site using AI leads to improved CX and increases the likelihood of returning to the site and making a purchase. This is an excellent example of how AI can facilitate customer interactions and ultimately increase the likelihood of completing the purchase process.

Personalization of offers and product recommendations

The use of AI in personalization translates not only into a more pleasant customer experience but also a higher shopping cart value. This is possible by tailoring messages to the customer’s path and sending special discounts or promotions based on the customer’s purchase history at the right moments. But above all, by using modern product recommendation techniques:

• Cross-selling – recommending additional products that match those the customer has already put in the shopping cart; based on artificial intelligence’s analysis of the customer’s profile and the segment to which it belongs,
• Up-selling – recommending higher-priced products to customers, thus increasing the value of the shopping cart and boosting sales.

Optimizing the purchase path with AI to increase sales

The customer’s purchase path is the process a customer goes through from the first contact with a product or brand to the completion of the purchase. Artificial intelligence allows you to increase e-commerce sales by improving this process in three ways:

1. Dynamic page layout. AI analyzes user behavior on the site, identifies the sections that attract the most attention, and adjusts the page layout in real time to place key information in the most prominent place, making it easier for customers to find the products they are interested in.
2. AI-driven A/B testing. An AI-based e-commerce tool, such as Google Optimize or Optimizely, for example, can conduct advanced A/B testing on different versions of a site to find the most effective layouts and elements, resulting in faster optimizations and higher conversion rates.
3. Anticipatory personalization. By looking at historical data and current user behavior, AI can anticipate customer needs, offering personalized suggestions for products and offers before users realize they need them, which in turn shortens the purchase path and increases the likelihood of completing a purchase.

Increase sales through social media sentiment analysis

Another way to increase e-commerce sales is to listen carefully to customers’ opinions. This is most easily done in collaboration with artificial intelligence, which can pick up trends and patterns even in a large number of statements. This is done through sentiment analysis, which is the process of extracting information from online text data to understand the audience’s opinions and attitudes toward certain companies, brands or products.

1. Understanding customer feedback – by analyzing comments and discussions on social media, AI helps you understand what customers think about the products or brands you offer. This knowledge is essential for effectively matching your offerings to consumer expectations, which directly increases sales.
2. Respond to feedback in real-time – Responding quickly to customer feedback is key to building positive relationships. AI can automatically identify and report negative feedback or issues, allowing you to respond immediately. Improving brand image on social media can translate into increased traffic to the store’s website and, consequently, increased sales.
3. Feedback-based product development – customer feedback and suggestions reported on social media can be an invaluable source of information on improving a product offering. AI helps analyze this data, enabling improvements that address market needs and enhance the appeal of the offering, which can ultimately increase sales.

Summary

The application of artificial intelligence in e-commerce opens the door to optimizing processes that directly translate into increased sales. In times of fierce competition in the digital marketplace, the ability to personalize offers and communication with customers, based on analysis of customer behavior and opinions, as well as a simple and pleasant shopping path are becoming key elements of e-commerce strategies.

However, the use of artificial intelligence in increasing e-commerce sales is wider than just optimizing the performance of the store itself. Harnessing the power of AI in social media sentiment analysis allows for a better understanding of customers and quick response to their feedback, which in turn builds a positive relationship with the brand and encourages purchases.

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