Artificial Intelligence has excited the ecommerce world since the last 5 years. There are many myths and misunderstandings. You might be wondering what the potential rewards and risks are if you adopt machine learning for your online store. By reading on, you’ll find out.
How Artificial Intelligence Relates To Online Business
There are big news stories about companies like Google and Amazon doubling down on A.I. What is the truth about it?
Many people believe that it’s a sentient kind of intellect like the kind humans have. This isn’t true as of 2018. Intelligent computers are more like an algorithm that crunch large data sets to make predictions. As it goes through more and more predictions, it becomes more accurate.
These leaps are closer to the way humans use their intuition to find hidden patterns. Some tasks too boring for a human which makes them perfect for a machine to analyze. Ecommerce uses massive amounts of data and that makes it a good fit.
7 Ways It A.I. Is Used Already
Installing artificial intelligence applications doesn’t have to be hard. There are many plug-ins for sites using Magento or WordPress for example. A good developer of these solutions is a firm known as Mageworx. They offer many other kinds of non-A.I. plug-ins for automation and simplifying common tasks too.
There are tools and plug-ins that allow you to crunch your customer data to find hidden patterns. They can notice patterns why people abandon their cart at each stage for example.
You’ll be able to predict what kinds of split testing will yield you the most results. Many businesses focus on testing information that turns out to not matter. Guessing can be very expensive if you rely on paid advertising.
Personalizing For Each Customer
You can make your website so responsive that it is tailored for each customer. Algorithms can use recorded customer behaviors to classify them. Each type of customer ends up seeing their own slightly different version of your store. Greater relevance is a heavy advantage in online marketing.
The ads you run online on large platforms are able to follow customers across websites. Whatever they do can get fed back to the algorithm. As offer converts customers, they are grouped by their behavior. This lets the advertising platform target similar people and save you money.
You can often download these data sets to do your own analysis. They can open your eyes to customer trends that wouldn’t get notice otherwise.
Many customers don’t buy on the first exposure to your company. It can take them time to do research. Seeing an ad from your familiar site can be what it takes for them to give you a chance.
A search engine tries to offer relevant information based on the way similar people behave. This is another way that the internet has been transformed by big data. Your own site may have lots of offers that are best for certain types of people.
For example, an algorithm can figure out that “schol supplis” really means “school supplies.” A customer might also type “folders for under 2 dollars.” Both of these likely sales would be lost if a site has a search engine that only can show exact searches.
Many developers are coming up with add-ons for website owners who want tailored results for each customer. The searches of each customer can be used to build a shopping profile of their preferences. This can save them time and make them like shopping with you more.
Here is a widely applied use of machine intelligence in many websites today. Many customers bounce if a website doesn’t directly answer their questions. You can install a chat bot that’s able to understand written English to help handle customer objections and questions.
It can forward more complicated questions to you or an employee to answer. This keeps your overhead at a minimum and maximizes your profitability.
This will drastically reduce your bounce rate in many cases. Reducing your bounce rate will lead to higher conversions and a greater return on your investment.
Fake Review Monitoring
Too many companies are maliciously attacked by their competitors who use fake reviews to smear their reputation. It can notice patterns like IP addresses, desktop configurations, time zones, and language patterns a bot network is using. An email or text can be sent to your team while the fake reviewer’s account is suspended.
Keeping track of inventory is a mundane and boring task. But, it is absolutely essential to keep making money. Keeping too much inventory drains your capital, and too little can heavily cost you during a sales rush.
A smart algorithm can keep tabs on your inventory and even anticipate if you are about to run low. This prediction is made by looking at past sales trends. For example, it may notice a big sales trend is happening. It can send you a notification to suggest restocking a particular item.
There are many ways to use artificial intelligence for your website. It will automate tasks for you and run your numbers. You’ll be able to free up your mental space to focus on bigger picture tasks. A.I. can make your life easier if you are patient.