How AI is Revolutionizing Online Retail: Cost Reduction and Enhancement of the Customer Journey
The main problem in online retail remains the same: meeting the needs of shoppers and ensuring a personalized shopping experience. However, it's important to recognize the significance of the interaction between the brand and the customer as a critical factor since this relationship is the backbone that sustains trust, loyalty, and business success.
In this article, we will explore how artificial intelligence (AI) is emerging as a powerful and versatile solution for this scenario, transforming how companies engage with their customers, providing access to information, creating personalized shopping experiences, and gaining a competitive edge in the online retail market.
Challenges in Online Retail and Their Implications
In the online shopping environment, customers often face the need to obtain information or support quickly and efficiently. However, the scarcity of information and less personalized interactions on product pages can result in an unsatisfactory experience, negatively impacting a brand's reputation and channel performance. To support this claim, Vurdere conducted a survey among its major clients, revealing that the lack of crucial information on product pages can lead to a reduction of up to 20% in conversions.
Thus, the lack of transparency, speed, the ability to include relevant information, and active interaction with consumers can amplify the feeling of distrust during the shopping journey, leading to a significant increase in abandonment rates and the migration of potential customers to competitors who offer a more efficient experience.
To overcome these obstacles, it is essential for companies to adopt innovative solutions that improve customer interaction and enhance the shopping experience, providing more relevant data to consumers during their shopping journey. This is where Artificial Intelligence (AI) comes into play as a crucial solution to overcome these bottlenecks.
A Transformation of Online Retail with AI
Aware of the importance of the social aspect and fundamental data in online shopping, solutions must comprehensively and strategically incorporate artificial intelligence (AI) into their offerings, which has had a positive impact on how companies engage with their customers and optimize the shopping journey.
An example of a truly personalized shopping experience with AI involves the analysis of consumer histories and detailed product information to suggest relevant automatic responses, optimizing communication between sellers and buyers. This not only meets the customers' needs but also strengthens the brand's image, establishing a solid base of loyal consumers, while significantly reducing the company's operational costs, around 2/3 of the total operating cost.
Furthermore, it is crucial to emphasize that AI goes beyond simply improving the customer experience and strengthening the brand; it also offers notable competitive advantages, such as SEO enhancement. This is due to the automation of customer interactions, taking into account the use of relevant terms and data that positively impact the organic positioning of that product on search engines. This set of actions significantly contributes to more efficient customer interactions, an increase in the audience without the need for additional investments, and results in higher conversion rates on product pages.
Merely illustrative example of a personalized response provided by Vurdere's Artificial Intelligence (AI).
A customer in the sports equipment industry has leveraged significant improvements in communication between sellers and consumers, thanks to the integration of Vurdere's AI into its online store. The AI managed to address a characteristic issue of the 3rd-party marketplace model, a product catalog lacking relevant information for purchase decisions. These improvements played a crucial role in achieving an increase of up to 18% in the conversion rate of product pages from the most active sellers. Additionally, they resulted in a significant reduction in response time to customers, achieving a threefold speed increase, thus contributing to remarkable growth.
This case clearly demonstrates that in an AI-driven environment, active interaction between brands and consumers plays a pivotal role in boosting conversion rates. It also shows that when consumers receive relevant and swift answers to their questions, they are more inclined to feel valued and satisfied, thus contributing to strengthening consumer trust in the brand.
The interaction between the brand and the customer is the beating heart of the online shopping journey, and AI acts as a catalyst that drives this relationship more effectively, economically, and personalized. As innovative platforms like Vurdere lead the way in applying AI to meet consumer needs and strengthen brands, it becomes evident that online retail is undergoing a remarkable transformation.
This transformation is largely driven by AI's ability to provide quick and personalized responses, optimize communication between sellers and consumers, and reduce operational costs, representing a win-win for all parties involved. Customers feel valued, well-informed, and satisfied, thus reinforcing brand trust, while companies build a positive reputation, reap the benefits of improved conversion rates, and achieve more efficient operational management.
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