How Machine Learning can benefit Ecommerce Industry

E-commerce is one of the industries that are exploiting machine learning to boost their sales. Top companies now have entire artificial intelligence (AI), deep learning departments.

The reason why companies are investing in AI is to have better knowledge of their clients. This includes their customer’s buying habits, behavior in different economic situations, etc. Besides, they also want to improve their customer experience and automate manual processes.

Experts believe that Machine Learning can revolutionize the eCommerce industry by providing a plethora of information to companies.

Let’s have a look, how Machine Learning can benefit the eCommerce industry.

Machine Learning & its benefits for eCommerce Industry

With AI, technology is becoming more innovatory than ever before – have a looked around incredible inventions around you. These innovative and intelligent machines are capable of doing things, that previously only human being could do. 

A recent study coming from Business Insider suggests that by 2020, more than 80% of customer interactions will be managed without a human. 

Machine Learning can identify trends and patterns

With Machine Learning, it is quite easy to learn about trends and patterns. These trends ultimately help companies to understand their customer and boost their sales. They are able to design effective marketing campaigns according to the trends and discovered patterns.

One common example is a giant software company like Microsoft. Microsoft was able to increase direct mailing open rate from 4.9% to 8.2%, by using a neural network software to maximize returns on a marketing campaign. Machine Learning offers sophisticated ways to get inside the mind of your customers, learn about their choices and buying patterns, and design your campaigns according to it.

Machine Learning will improve Customer Experience

Customer Experience plays a vital role in the growth of any business. Online platforms that offer a pleasant customer experience enjoy healthy returns and conversion rate. Machine Learning is a proven way to satisfy your customers online, upon their every visit.

Customers too prefer to shop from platforms that are more interactive and ready to listen to customer’s problems. With AI, the complex process of customer interaction can be easily automated and simplified. Unlike humans, a bot is unlikely to lose his cool in front of a customer when asked the same problem twice or thrice. Machine Learning is helping companies in saving their time, effort and other resources by automating the process of Customer Support.

Dynamic Pricing 

Another advantage of ML in e-commerce is its ability to pinpoint your Key Performance Indicators. Once you learn that which of your products are most sought by people, you can set prices for them accordingly. Machine Learning algorithms can help you to discover new patterns from the data they collect.

Furthermore, you can create real-time discount offers to boost your sales and get rid of a long-held stock. Before AI, the same process would have taken a significant amount of time, when such patterns were discovered manually. Machine Learning made the whole process of setting up prices and campaign designing faster and more effective.

Tell your customer about a discount sale or new stock

Imagine writing an email to inform your customer a discount offer or new stock arrival and sending it to thousands of them. Sheer drudgery! Isn’t it?

Machine Learning will help companies to automate this process.

With the help of already gathered data, machines will be able to know who are their regular customers. Hence, they will regularly update them about seasonal sales and discount offers. This will be immensely helpful for companies to enhance their clientele and boost sales. With little effort, Machine Learning will allow you to double your revenue.

Recommend products to your Customers

The biggest advantage of Machine Learning is its ability to store data about customer habits and understand patterns. These patterns allow companies to pay individual attention to every customer. And every customer loves being informed about discount sales on a product that he loves buying from a particular platform.

 Big online platforms like Amazon and eBay offer different types of products. And they have diverse clientele – a teenager may prefer to buy earphones from them, and an adult can be their regular books buyer.

ML allows you to store data about all types of customers separately, and inform them about seasonal/promotional sales.

Conclusion

Things are changing at a rapid pace in e-commerce world. The companies are no longer dependent on humans to take care of things.

Bots are providing 24-hour customer support to the customer. They don’t mind answering the same query thousands of time. Moreover, humans too enjoy instant solutions for their problems. 

Companies are able to devise more effective campaigns and take them to the relevant people. ML algorithms make it easier to understand the behavior of their customer and keep him engaged with regular interaction and sales.

However, some experts still believe ML algorithms despite their accuracy, will always need humans to operate them.