Artificial intelligence in retail increases conversion rate by 35 percent

Artificial intelligence in retail

Online shoppers go for the optimal digital customer experience, online retailers for revenue and profit optimization. That does not have to bite each other, on the contrary. The better you follow your customers, identify their wishes and preferences and respond to them with personalized recommendations, the richer the customer experience. The logical result: more turnover and loyalty. Nothing is impossible with ever-smarter technologies. The application of artificial intelligence in retail is advancing. According to research, the conversion rate increases by an average of 35 percent.

The necessary descriptions exist for the term 'artificial intelligence' (Artificial Intelligence / AI). In the sales atmosphere is this definition used: Artificial intelligence (AI) is the concept where machines 'think like people'. So they can reason, plan, learn and understand language. The brain behind artificial intelligence is a technology called machine learning. ”

Nobody can predict what self-learning computers will eventually be capable of. It is certain that the impact is enormous. Computers that beat chess grandmasters and GO champions, computers that recognize faces and language. Get used to it. Computers really go 'to think'. The more computing power, the faster the development will take place. Programmers are still needed, that is, people, to kick-start. But then computers are increasingly able to program themselves further. Is that threatening? Some believe so. Others see opportunities. Online sales opportunities, for example.

Artificial intelligence in retail takes customer experience to a new dimension

What is still science fiction for many consumers has long been a reality for larger retailers and marketers. Machine learning and artificial intelligence in retail take the customer journey to a new dimension. Real-time interpretation of data enables retailers to discover and respond to patterns in the behavior of individual consumers. Social media and major platforms such as Amazon, Alibaba and eBay are already making smart use of artificial intelligence in retail and their online activities. Think of the personalized advertisements and offers. Also consider the dynamic sales prices based on location, characteristics and customer patterns.

Larger online fashion and cosmetic retailers such as Zalando and Olay are also making effective use of artificial intelligence and machine learning. They serve customers the ultimate match based on individual searches. Thanks to the thinking and learning computer. For example, Olay, one of Procter & Gamble's most successful labels, offers an AI-based tool that allows customers to find the best care products for their specific skin type online.

What do your customers want? The learning computer answers

Artificial intelligence in retail allows you to better and faster understand the wishes and preferences of customers. So that you can tailor your range and promotions to that in razor sharp and in real time. The knife cuts both ways: the customer experiences individual attention and convenience, you increase your chance of conversion and thus your turnover. You can not ignore it. If customers experience the ultimate personal experience at other webshops and you do not, you will miss the boat.

According to Twinkle, trade magazine for online retailers, 2018 was the year in which artificial intelligence in retail finally broke through. The magazine cites research, which shows that in-depth, data-related customer knowledge based on artificial intelligence and 'deep learning' increases the conversion rate by an average of 35 percent. Why? Because we are much better able to look at and respond to the potential value of the customer.

What applies to every innovation also applies to the application of artificial intelligence: it is important to carefully consider what the possibilities are for you, how you adapt your existing IT environment and CRM, and how you make efficient connections with existing OmniChannel tools. Enough to research and exchange ideas, so. Increase conversion opportunities with AI? Make an appointment.

 

 

 

 

 

 

 

Tagged under:

en_GB
nl_NL fr_BE en_GB