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Artificial Intelligence in E-Commerce: 4 Practical Implementation Approaches

Artificial intelligence in e-commerce is paving the way for store owners to take better control of how their store runs and provide a better experience for all their customers.

If you’re looking for new ways to wow your customers and excite new customers, artificial intelligence is something to think about.

In this post you’re going to learn:

  1. Why you should use AI within your search functionality and how it helps customers identify products they want to buy
  2. How you can use AI to retarget customers who were looking at specific items but never made a purchase
  3. How to use AI within your marketing to improve the levels of personalization you offer to your customers
  4. Why AI is crucial for optimizing your pricing strategies
  5. How to implement AI within your chatbots to provide shoppers with 24/7 support

Let’s go!

Use AI within your search functionality

When a potential customer lands on your site, ideally they’ll know exactly what they want to buy. But if they don’t, they might want to look around. Now in a brick-and-mortar store, shoppers are able to physically walk around. The same isn’t possible on an e-commerce store, which is where AI comes into play.

When you search certain words on Asos, you can see a range of other searches you might want to look at.

ASOS Search Function

In the example above, we’ve searched for “gym”. Now Asos is a clothing website so it goes without saying they don’t sell actual gyms there.

But their technology understands that if someone is searching the word “gym” they’re probably looking for gym clothes.

From the drop-down options, you can specify whether you’re looking for gym bags, gym tops, gym leggings and more.

This is effective for people who use different phrasing to search for products or also people who might be interested in a product they haven’t considered.

Suppose I went onto the site to look for gym leggings. When the drop-down list presents me with gym bags, it could spark some interest in other product options.

Use AI to retarget potential customers

When you start to track how your customers and potential customers are interacting with your site, you’ll notice that there is a range of customers who visit your site, look at products and maybe even add them to their basket – but fail to make a purchase.

There are a number of reasons why someone might not fulfill their purchase including:

  1. They no longer want the product
  2. They don’t think the product is worth the money
  3. It could be that they got distracted and plan to come back later

If it’s the final option, even if someone plans to come back and buy the product at a later date, they might forget.

That’s where AI comes in.

Artificial intelligence is great for locating the customers who looked at your products and retargeting them.

Through retargeting, you’re able to meet your customers at other sites on the internet.

I could view a product on your e-commerce store (not make a purchase), and then in two days, I might see an advert on a social channel for the same product.

This use of AI is great for winning extra sales.

Improve pricing

Knowing how to price your products is a struggle for any e-commerce owner. You don’t want to keep your prices low in fear of not making enough profit. You also don’t want to increase your prices too rapidly in fear of not generating enough custom.

But deciding on your prices needs to be backed by data. If you simply just guess what price you think you should place your products at, you’ll run into problems.

We’ve spoken a lot on this blog about the various different pricing strategies you can implement but one of the most common approached to any strategy you use is to use artificial intelligence.

Using our own tool, Prisync, we’re able to track the current and historical prices of our competitors’ products. We can then use AI to make smart predictions as to what to price products.

Without AI, you’d have to manually track all your competitors’ product’s prices and then manually decide how much to increase or decrease yours by.

With artificial intelligence, you can automate your pricing to ensure you have extra time available to do the work that truly matters.

Increase personality with chatbots

Chatbots are all the range and their adoption within e-commerce is growing rapidly. You can use chatbots for a range of different things on your e-commerce store.

You might want to:

  1. Help customers locate specific products
  2. Use it as a personal shopper
  3. Allow customers to ask previously asked questions like shipping times or out of stock products.

The lego chatbot, for example, helps customers pick the right gift. You’ll have access to personalized recommendations directly to you. You’ll start by receiving a number of pre-written questions.

These questions help the chatbot identify what sort of product would be best for you.

Once you’re happy with the product, the chatbot automatically adds it to your basket, streamlining the entire process.

Many shoppers miss the experience of chatting with a real person as they do in brick and mortar stores, so using chatbots is one way to replicate that process.

Be certain that if you are going to use chatbots, they work well. Customers will very quickly become frustrated if they feel as though the chatbot is causing them more harm than good.

You can also integrate your chatbots with Facebook messenger so shoppers can interact with you on the go.

Final thoughts

From this post, you should have a clearer idea of four ways you can start using AI in your e-commerce store.

With the advancement of technology, what you can achieve with AI increases.

Have you started implementing artificial intelligence in your e-commerce store? Leave a comment below.


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