How AI development companies are revolutionizing e-commerce!
Aug 02, 2018
If you’ve ever been near a computer recently, you’ve probably heard something about how AI is revolutionizing e-commerce. You might soon refer to a robot lawyer and get news from robot journalists. And while those things seem a bit far off, AI is already changing the e-commerce by helping brands reach out to customers in increasingly personalized ways. In this article, we are going to break down categories of e-commerce solutions that are commonly handled by AI. AI development companies can do that!
1. How AI solves abandoned cart!
2. Visual Search is changing how we browse!
3. Chatbots can ease the pain points in the e-commerce experience!
As e-commerce companies struggle to increase personalized experiences for customers, AI is revolutionizing conversations and content.
How AI solves abandoned cart!
E-commerce is excellent for browsing, but it is difficult for customers to stop considering and actually buy something. In fact, around 70% of online shopping carts are abandoned before purchases are completed. For clothing retailers, it’s even more difficult to get customers to commit to a purchase. Before buying, they prefer to hit a brick-and-mortar location and speak to a sales associate or a friend for a second opinion.
Successfully, outdoor wear company, The North Face, partnered with IBM to improve their personalized customer experience by incorporating AI. For their online shopping app, it can export a very detailed profile of customer data in less than a second, and from there, asks questions about where, when, and for what activities customers will be using their products. Next, the AI provides personalized suggestions ranked from “High Match” to “Low Match,” and then guessing whether the purchase will be right.
So, does it work? Early data points to yes. Customers spent an average of two minutes with the AI, not to mention, 60% click-through rate for product recommendations! We can not design what AI development companies can benefit.
Visual Search is changing how we browse!
AI is helping e-commerce companies like eBay, Target, and Pinterest take the guesswork out of online shopping by simplifying the search process.
- Pinterest reported that 93% of its users use the site to plan purchases. So they recently integrated AI to create searchable images where users could tap just one part of an image to find product information.
- Retailer Target has recently partnered with Pinterest to substitute keyword search for image search in its app, so instead of typing, users can just upload a photo and let AI technology find a perfect match.
- Ebay has recently added similar technology but is upping the ante by allowing users to share images from social media or websites in order to find similar products for auction on the site.
Social media platforms are witnessing 3.2 billion daily visual shares. That also means customers prefer to shop what they share. Visual search is still in its early stages, but AI technology is leading the charge in blurring the lines between online and in-store shopping.
Chatbots can ease the pain points in the e-commerce experience!
Many brands are already using them to better communicate with their target audience, provide customer service, recommend products, and drive sales.
- 1 in 5 consumers would consider purchasing goods and services from a chatbot.
- 40% of consumers want offers and deals from chatbots.
- Consumers are willing to spend more than $400 through a chatbot.
Chatbots do more than just offer a new channel for people to find deals and make e-commerce purchases. They also help consumers identify what products they want and need.
Still can’t picture it? Maybe you haven’t tried any of these chatbots yourself. To get a look, here are just 10 of the many cases where e-commerce brands use chatbot AI to reach their audience, provide customer service, drive sales, and more.
Nothing can beat the experience of chatting with a Sephora associate about your makeup needs in person! Sephora’s chatbots are helping consumers find deals and make purchases, but also make fashion choices and find products that meet their unique style and tastes.
- It prompts Kik users to provide a few key details about themselves in the form of a quiz that takes seconds to complete.
- They also developed a chatbot called the Sephora Virtual Artist on Facebook, that allows people to try on different lip colors using selfie photos.
eBay first started using chatbot technology by piloting a simple Facebook Messenger tool that reminds bidders 15 minutes before an auction listing is about to end. That way, they can remember to get a last-minute bid in.
Now they’ve expanded to offering ShopBot, a virtual personal shopping assistant that helps people find items they want (at the price they want) on eBay.