New technologies such as IoT commerce, virtual reality, machine learning and artificial intelligence are powerful tools for customer retention and conversion that can bring immense competitive advantages. Online shops that want to remain successful must be able to adapt flexibly to trends in digital commerce or they risk being left behind by technologically better positioned competitors. The technology that will have the greatest impact on all aspects of commerce, according to Gartner , is artificial intelligence (AI). Forecasts say that by 2022, at least 5% of digital commerce orders will be initiated by artificial intelligence.
AI is one of the technologies that is revolutionizing digital commerce. On the company side, this means higher profits thanks to lower costs and higher sales. On the customer side, the customer experience improves, which leads to increased satisfaction.
Companies around the world are already investing in these promising technologies. Small and medium-sized companies are still holding back. However, this could still prove to be a problem for these companies. Companies that invest early in mission-critical technologies build up an immense advantage. They gain a head start in practical knowledge and can set themselves apart from their competitors at an early stage.
In this article, we present the results of the Gartner primary study on the use of AI in digital commerce in Germany and derive recommendations for small and medium-sized companies. But first: What does digital commerce mean and how can the industry benefit from artificial intelligence?
The Rise of Digital Commerce
Classic e-commerce is dead. Why? What worked in the past no longer works. Simply presenting your products on an online platform and spending on marketing campaigns is no longer enough to stand out from the numerous competitors. Customers expect a unique customer experience, offline and online. Consumers should get what they want before they even want it. Smart refrigerators automatically place orders when the food supply falls below a certain threshold. Chatbots conduct independent consultations. Machine learning algorithms suggest products to customers that match past purchases. The entire shopping process is becoming increasingly simplified and optimized - similar to the invention of the iron or the washing machine, technologies are emerging that allow us to spend time on more important (or nicer) things. In comparison, classic shopping processes seem more and more like a boring obligation, a mundane everyday task that we would rather avoid.
As commerce has evolved to include web, mobile and social channels, the number of customer touchpoints has also increased. Digital commerce encompasses numerous channels and analytical decisions driven by data and software. The new form of e-commerce requires online stores to be able to use modern technologies to offer their customers multi-channel commerce experiences .
In addition to product catalogs, web shop windows and shopping carts, digital commerce brazil telegram data consists of recommendation mechanisms, personalization options and rich media content. Shopping in digital commerce thus becomes an interactive and self-service experience for the customer , which is increasingly tailored to individual requirements.
Artificial intelligence offers many advantages for the customer (e.g. personalization, targeted display of relevant content and time savings) and thus leads to an improvement in customer satisfaction . In addition, the improved customer experience increases the conversion rate and sales for companies. This is another reason why AI-supported mechanisms such as Alexa, Siri and chatbots are now an integral part of the shopping experience.
For example, AI makes it possible to offer customers real-time product recommendations that have been personalized based on existing data sets. The artificial intelligence makes predictions that are translated into content and product suggestions . Another example is context-sensitive recommendations. If a user is looking for a house on a real estate platform, they can automatically be shown financing options, furniture or insurance. AI solutions can automatically generate and personalize landing pages. This means customers receive content that is relevant to them and conversion is increased.
The analysis of customer reviews plays a crucial role. In the future, the valuable data from countless customer opinions will be analyzed by AI technologies and used to improve products. Customer preferences will also be better understood by AI and taken into account in future product innovations. This allows companies to ensure that their products are optimally tailored to the needs of their target groups right from the development stage . Innovations can therefore be based on analytical decisions, which makes them more promising and significantly reduces the risk of failure.