22 Dec 2022
Updated on December 30th, 2022
How AI is Helping Ecommerce Platforms Improve User Experience
Techugo Pvt. Ltd.
We look forward to 2023 with joy and hope that it will be a glorious year for the world, which has been badly affected by the pandemic in the last three years. Although, eCommerce was one segment that got a boost during these tough times, as people were afraid of visiting malls or marketplaces.
eCommerce has been growing steadily over the years, with many players entering the segment every year. Of course, giants like Amazon, eBay, and Alibaba, still have a majority share of the market.
AI is making its presence felt in all walks of life, whether in defence, healthcare, aviation, or eCommerce. From Virtual Reality to Artificial Intelligence, technology keeps pushing the limits of what eCommerce can offer.
Let’s dive straight in to find how AI is transforming User Experience in eCommerce platforms.
7 Ways AI is Transforming User Experience on eCommerce Platforms
eCommerce platforms are thriving like never before, and they make use of the latest technology for building their mobile application, for logistics, payments, and customer service. Here, we focus on the use of AI technology by eCommerce apps to improve User Experience(UX).
#1 Personalized Product Recommendations
AI tools can collect and process customer data about their online shopping journey. This can be used to offer personalized product recommendations based on past behavior and lookalike customers.
eCommerce stores that recommend items based on purchase history & profile, use Machine Learning to deliver a personalized experience and generate customer insights.
With the advancement of Artificial Intelligence technology, deep levels of personalization have started revolutionizing the eCommerce world. AI engines, like Boomtrain, keep a watch on top of multiple customer touch points.
No matter whether it is a mobile application, website, or email campaign, the AI engine continuously monitors all devices and channels to create a universal customer view. This customer view helps eCommerce firms in delivering seamless customer experience across all channels.
More Reading: DoorDash uses Machine Learning and Optimization Models To Enhance Customer Experience
#2 Customer Service
Virtual Assistants & Chatbots are transforming User Experience on eCommerce platforms. These bots cannot completely replace customer care executives as of now, but they take care of routine queries & complaints. This can free up time for executives to deal with more complex tasks.
These AI-enabled bots are available 24X7 and can handle thousands of customers at the same time, improving Customer satisfaction.
Natural Language Processing(NLP) is another AI technology that can interpret voice to interact with customers.
Other alternatives, such as contact forms, emails, and phone calls, are not as efficient as chatbots. As the latter option is the fastest and more convenient way for customers to get answers.
#3 Inventory Management
Efficient inventory management is all about maintaining the right level of stock that can meet consumer demand without adding to idle inventory.
While earlier, inventory management was based on current stock levels, AI-enabled Inventory management is based on:
- Sales trends over previous years
- Projected changes in product demands
- Potential Supply Chain Management(SCM) related issues
Along with managing inventory levels, AI is also being used for warehouse management. Automated robots are also being increasingly used as they can be used 24X7, unlike human employees, to store or retrieve stocks.
#4 Digital Humans
Digital humans are human-like personas powered by AI technology who create a dynamic and life-like experience to connect with consumers. They are capable of conversing like real humans using Deep Learning and Natural Language Processing.
Digital Humans imitate the personality, voice, and nature of brands they have been created for. These bots are capable of emoting happiness, warmth, friendliness, and empathy. They can crack jokes and even show support through their body language.
For example, if a user logs in for the second time for his/her purchase, it can recognize current user emotion with what it was earlier.
The advantage they provide is they create a human touch, which is necessary to build lasting relations with consumers.
#5 Fake Reviews Identification
Any eCommerce platform will not like fake reviews to show up on their web pages and apps. Here is when AI can help them in weeding out fake reviews.
Fake reviews are known as ‘astroturfing,’ and it is widespread on eCommerce, including Amazon. It is defined as the practice of creating or spreading false reviews that a potential customer would trust as a neutral, third-party testimonial.
Customer reviews have become the benchmark of trust in eCommerce, where customers cannot physically see the products before purchase. Thus, customer reviews and ratings, who have bought and used the product, play a significant role in the success of the product.
Amazon uses AI to tackle fake product reviews and the inflation of their star ratings. AI machine-learning system is used to boost the prominence and weight of verified customer purchase reviews.
#6 Identify Counterfeit Products
Like fake reviews, attributes such as product, brand, and category can be used to spot counterfeit products. For a consumer, it will be difficult to identify counterfeit products in an eCommerce store.
However, if the customer buys a fake product by mistake, it can leave him disgruntled and with a negative perception of the eCommerce store.
Machine Learning Algorithms can be used to spot counterfeit products. eCommerce AI systems can collect data from multiple online stores and analyze it to spot counterfeit products.
Factors such as the posting rate of an account, the kind of items on sale, and even fake reviews of listed items, can be used to identify counterfeiters.
Genuine clients can submit claims with eCommerce companies to get counterfeit products removed.
#7 Localize Customer Experience
AI can be used to identify the location of consumers and accordingly suggest products or services. This prevents the customer from getting overwhelmed with recommendations.
As a result, consumers can make faster decisions and with more confidence. So, it is a win-win situation for both the consumer and the eCommerce company itself.
AI-enabled eCommerce platforms are also expected to answer questions of customers like “Where can I go for rock climbing on my birthday?”
AI systems can make personalized recommendations based on your profile, history, and previous purchases for points of interest that you never knew existed.
In a Nutshell…
Artificial Intelligence enables eCommerce platforms to analyze millions of interactions every day to get insights. Although the term “Artificial” may seem to have a negative connotation, in this case, it is improving User Experience.
Data collected by online purchases of products & services is what drives AI-enabled systems to target a particular customer at the right time with the right product.
As the technology gets smarter over time, it will change and improve the way customers shop on eCommerce platforms. With rapidly decreasing attention spans, AI-driven eCommerce platforms will be crucial for the success of eCommerce firms.
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