How Artificial Intelligence helps ecommerce

06/03/2018

Angela de la Vieja

We have all heard about Artificial Intelligence (AI), but how can it benefit ecommerce? The essential thing to know about AI is that it is the machines that are responsible for doing certain tasks and that those machines are capable of learning to improve the way they are doing those tasks, thus improving their results and multiplying productivity.

The development of AI is increasingly important in marketing and ecommerce. There are machines capable of tackling by themselves tasks that would normally require human input, which frees time and energy for the worker. But the key is not only in the speed with which these machines are capable of doing their tasks, but also in the efficiency with which they perform them. The world of Artificial Intelligence is in continuous movement, and new developments confirm that machines not only perform their tasks efficiently, but learn to do better every time.

Although for the moment there are still few companies that have implemented Artificial Intelligence strategies, the businesses that have done so have generated an increase in sales between 6 and 10%, according to a recent report by MIT Sloan Management Review and The Boston Consulting Group.

In the competitive landscape of ecommerce, in order for a business to succeed, it needs to be faster and smarter than the competition. AI is changing the rules of the game in four major areas:

1. Chatbots. The use of online chats is increasingly common in online purchases, and the normal thing is to talk with a robot programmed to offer help on any questions the customer has about the products. They are so well programmed that each time it´s harder to know if it is a robot or a human who is responding. The experience is increasingly personalized and intelligent. And with it ecommerce can serve its customers 24 hours a day, 7 days a week, and quickly gather valuable data from customers and potential customers, simply tracking their behaviour in detail thanks to the learning of the IA machines.

With an effective chatbot the ecommerce can increase their conversion rates by adapting the online experience to the consumer's demands without having to do any extra work.

2. CRM. One of the most striking features of AI is its predictive nature. With it the CRM will become part of the past. All the effort necessary to collect data from customers and potential customers to then draw conclusions and make predictions, is streamlined and made much more efficient thanks to the AI.

It will no longer be necessary to have a professional expert in CRM, the new era of marketing is able to direct a message adapted to each visitor and at the right time. In addition to making things easier for ecommerce, these advances also improve the customer experience.

3. Inventory Management. Predictive AI analyses are changing top-down inventory management. No major efforts to keep the inventory updated and all shelves supplied, while any changes are recorded in detail.

Artificial Intelligence technology allows the owner of an ecommerce to obtain information about the factors that drive demand and predictive analysis of future demand. In addition, as the machines continue to learn about the company, they will be able to more accurately predict the inventory needs in real time and future, which will result in improved business results.

4. Image processing. It is increasingly common to find a product in an ecommerce through images; products whose name is unknown or cannot be found, a product seen on the street or on Pinterest. The ability of AI systems to classify, interpret and understand images makes that task much easier.

Amazon is one of the companies that already use Artificial Intelligence in image management to increase their sales. By simply opening the ecommerce mobile application and directing the phone camera to a product, Amazon identifies it and extracts it to be added to the product trolley. As simple and fast as that!

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.