5 Ways You Can Benefit From AI in Ecommerce
July 28, 2023
Artificial Intelligence (AI) has become an integral part of our daily lives. Whether we're interacting with voice assistants, receiving personalized recommendations, or even browsing through our social media feeds - AI is ever-present. This powerful technology is not limited to personal use; it's transforming businesses across various sectors, including ecommerce. We'll delve into the various ways you can take advantage of AI for your business.
Personalized Product Recommendations
One of the most common applications of AI in ecommerce is providing personalized product recommendations. AI can leverage data from a customer's past behavior as well as similar customers to offer curated product suggestions. For instance, if a customer has a history of purchasing fitness gear, the AI system can recommend related products, such as sports shoes or fitness trackers. This level of personalization not only enhances the customer's shopping experience but also increases the likelihood of purchase. If you're looking to improve your customers' shopping experience, look at AI tools like Algolia, Bloomreach, and Kindly.
AI-powered virtual assistants or chatbots can provide instant support to customers, answering frequently asked questions, guiding customers through the buying process, and even assisting with checkout issues.
Chatbots are available 24/7, ensuring that customer queries are addressed promptly, regardless of the time of day. Moreover, platforms like Ada, Tidio, and Zevi can handle multiple queries simultaneously, which can significantly reduce wait times and improve customer satisfaction.
AI also enables advanced customer segmentation. By analyzing your customer data, AI systems like Tresl, Peel, and Peak can identify patterns and segment customers into specific groups based on their preferences, buying behavior, and other factors. This allows businesses to tailor their marketing campaigns to target specific customer segments, ensuring more relevant and effective marketing.
Smart Inventory Management
One of the key areas where AI is proving beneficial in business operations is inventory management. AI can predict demand levels, forecast transit times, and even anticipate shipment delays, making it an invaluable tool for smart logistics.
With AI such as c3 and Singuli, businesses can maintain optimal inventory levels, minimizing the risk of overstocking or understocking. This not only reduces storage costs but also ensures that products are available when customers want them, enhancing customer satisfaction.
Business Loan Underwriting
Getting working capital can make or break a business. Traditional underwriting process is slow and labor-intensive, often taking days or even weeks to complete. It also tends to be subjective, as it relies heavily on the underwriter's judgment, which can lead to biases and inconsistencies. It also often overlooks potential borrowers who lack traditional credit histories, excluding them from accessing financial services.
In contrast, AI underwriting for business loans offers several advantages over traditional methods. It speeds up the underwriting process, reducing the time it takes to make a lending decision from days to mere minutes. A funding solution like Clearco can also help eliminate human biases, ensuring that lending decisions are fair and consistent. Furthermore, AI such as Fundmore underwriting can leverage alternative data sources to assess the creditworthiness of borrowers who lack traditional credit histories.
The Future is Here
If you're an ecommerce business looking to stay competitive and deliver exceptional value to your customers, it's time to embrace AI ecommerce. The future is here, and it's powered by AI!