Are artificial grey cells revolutionizing e-commerce? A lot of artificial intelligence is still future music. But traders can do something: test the affordable AI harbinger and familiarize themselves with the technology.
There are already ways in which eCommerce can try out artificial intelligence in a meaningful way. Depending on the application, there are a number of things to consider when learning AI and the right conclusions are to be drawn. AI is when human intelligence is imitated with logic and if-then decisions. One of the most common uses of AI today is in the field of marketing: algorithms are used to personalize recommendations for customers.
Divide customers into groups
As a first step, AI systems use statistical procedures to help customers better. They recognize homogeneous customer groups. For this, the AI is looking for comparable purchasing behavior and similar preferences. This allows you to track live KPIs (Key Performance Index), shopping cart sizes, network development, segment sizes and more. The efficiency of different activity groups is controlled. In addition, these self-adapting results support the introduction of new products, etc.
Now it’s the turn of forecasting algorithms to motivate customers to behave in a particular way. The “KIBrain” (Artificial Neural Network) can be trained for various purposes, such as:
• Individual product recommendations Generate (Next Best Offer) – Simulate how to include a new product or campaign • Choosing the most promising
This should not only make cross-selling possible, but also up-selling thanks to shopping cart analysis. Offers and marketing campaigns are precisely geared to the customers. If a product is no longer in stock, a replacement product will be advertised instead. Strategies such as Next Best Offer and Next Best Action are among the most commonly used. This makes it possible to draw conclusions quickly: What has the customer been looking for, what has already been purchased, and how does his shopping cart sit down right now? How should the interaction with the customer continue? Individualization
However, online shop operators can get even closer to the customer. For example, with automated influencer-to-follower networking. The influencer is also said to be the buddy next door. “Buy what your friends like and see their photos with our products!” This is the advertising message in times of Instagram, Youtube and Co. To do this, Instagram, online shop and ERP system must interact and exchange data. Technically, it is also possible to display the snapshots from Instagram on further visits tailored to the respective user. Anyone who has visited the online shop and confirmed cookies can even expect a personalized website with the pictures of your own Instagram friends. The concept can now be continued with the help of AI-supported and face-recognizing software. However, such an idea still falls under the Vision category and leaves the Daily Best Practice. So back to the bottom of the facts, to the present state of affairs.
In online retail, artificial intelligence can also be used to support backoffice processes. The predictive analysis of sales figures allows to define further algorithms – for example for automatic stock replenishment, while an AI can be used in customer analysis, for example, to assess the reliability of a buyer. Loyaltyprograms also check whether fraud or other things are noticeable in customer behavior. This includes: • Incorrect configuration of the program – a participant with high total expenses received fewer points Fraudulent activity on the account in question – the total number of points earned is disproportionate compared to the total of the expenses One of the most important applications of AI in the field of customer relations is to detect and combat emigration from the shop early. In real time, it analyzes which groups are involved and what needs to be done.
Test There are some features that online retailers can try out. Of course, there are also stumbling blocks, but they come with every new technology. They can be easily eliminated. It’s best to work with an AI service provider for implementation. He takes over the technical side and learns the AI. AI specialists know what to consider with regard to GDPR. The idea of what AI can do in your online shop should be devised by you as a shop operator and not left to aI. . . .