Competitive Advantages with Artificial Intelligence in E-Commerce: Why Companies Should Become Active Now
Artificial intelligence is on everyone’s lips. We’re hearing about groundbreaking technological developments and some amazing ROI. Solutions incorporating artificial intelligence are also becoming increasingly relevant in the e-commerce sector. A study by BVDW shows that more than half of the retail companies surveyed assume that their business will no longer operate without AI in 2025.
Awareness of intelligent technologies is rising and enthusiasm levels are sky high. However, the road still seems like a long one. A closer look at boardrooms in the industry reveals that AI is very rarely a natural part of the future growth strategy.
There are many and various reasons why you might be reluctant:
- Uncertainty regarding the concrete benefits of AI technologies
- Lack of know-how about AI and unresolved questions about implementation
- General reluctance to change processes
Nevertheless, those who wait too long are easily left behind. While companies are still weighing up the pros and cons, AI technology is already opening up new opportunities that will give those who know how to use them considerable competitive advantages.
In this blog post you will learn:
- How AI software solves your future problems and why you should already start preparing your company for the new digital “employee”.
- What AI can be used for in online commerce and why companies especially benefit from using it in customer service.
- What competitive advantages companies gain by using AI in customer service.
Intelligent Data Preparation: How AI Is Used in Online Commerce
AI algorithms are already opening up new possibilities today and will play an even more important role in e-commerce in the future. The reasons for this lie in their ability to process data intelligently: artificial intelligence simplifies complex processes and makes it possible to draw the right conclusions from a large volume of information.
This potential is already being exploited in many areas of online commerce: warehousing and logistics, strategic planning (e.g. forecasting sales volumes), price calculation (individual prices for each customer) and in the sales process.
Another almost inexhaustible source of data is provided by customer service. The customer experience and the customer journey are becoming increasingly relevant from a financial perspective for the retail industry. In order to be well acquainted with the customer and to guide them online right up to the purchase, the first step is to collect a lot of data:
- What makes my customer tick? What needs do they have and what is important to them?
- Which search queries are relevant?
- At which points does the customer need specific information?
As a second step, this enormous volume of data should be successfully analyzed. Artificial intelligence does this in a fraction of the time. Modern algorithms often learn much faster than humans and can use big data effectively.
Customer service is a crucial area of application of intelligent automation. In the following, you will learn at which points of contact with the customer AI technology can bring you decisive advantages.
Faster, More Efficient and More Personal: AI Can Revolutionize Your Customer Service
As the person responsible for online commerce, you know exactly what customers want: solutions to their problems quickly and easily.
Customer service that excels here turns customers into fans and creates a real enthusiasm for the brand. However, customer demands have changed dramatically as a result of digitalization.
Whereas it used to be considered normal to wait several days for a response, this is now considered a no-go. When will my package arrive? How do I download my invoice? Where is my refund? Customers expect quick and helpful answers to these and similar questions in real time, regardless of the channel they use to contact a company.
This poses a major challenge for your agents, who, faced with the sheer volume of calls, chat messages and emails, spend a lot of time responding to repetitive inquiries.
This is where an AI software with a clear channel strategy offers unimaginable possibilities:
- AI analyzes the tickets of all channels and automatically assigns them to the right recipients in the company.
- With time, AI will be able to answer inquiries by itself at a rapid pace. For other inquiries, it submits suggested answers to the agents, which also saves time. This means that the agent can use their valuable time to deal with more complex issues.
- AI is always friendly and provides customers with correct, case-closing information. No human being would be able to keep this up in the long run.
- By using standardized answers, AI helps you to achieve brand-compliant communication and thus contributes to an improved brand image.
- The content of the tickets are a valuable source of information. This data becomes useful with the help of AI.
- AI operates on the basis of a central knowledge database, which can also be used to train employees. Cross-channel AI solutions “feed” this database with every learning outcome achieved. Regardless of the channel via which knowledge is collected, it is immediately available in subsequent channels.
Competitive Pressure Makes the Use of AI Indispensable
Software that uses artificial intelligence opens up completely new opportunities for online retailers. It improves the shopping experience of your customers, reduces the complexity of work steps and optimizes the management of valuable resources such as employee working hours.
E-commerce companies that do not rely on artificial intelligence in the future will miss out on decisive competitive advantages:
- Reduce your first response time and increase your first contact resolution rate. Just make sure you’re faster than your competitors
- Increase productivity and reduce service center costs by leveraging the potential of automation
- Increase the performance and success of your business by achieving a higher ROI through AI-driven processes
- Make your company fit for the future by tapping into large amounts of data and basing your strategy on it.
Without AI, online businesses will soon be too slow, too inflexible and thus unattractive to customers. This is not to mention the loss of invaluable information that will be difficult to collect and evaluate effectively in the future without AI.
Conclusion: Prompt Integration of AI Technology is Paramount
Artificial intelligence is not a trend that you can afford to miss out on. The use of AI in commerce is well underway. Those who ignore the signs of the times run the risk of lagging behind in the race for customer satisfaction and ultimately not being able to survive in the market.
Your customer service will only be able to handle ticket volumes and meet customer requirements over the long term if you adopt a holistic AI approach, preferably an omnichannel approach. The question is no longer whether, but rather how long an e-commerce organization can survive without this technology.
Set the course for the future of your company today. Our experts provide comprehensive advice on AI in e-commerce and support you in successfully managing the ever-increasing volume of business tasks. Get in touch!
parlamind is a Berlin-based start-up for Artificial Intelligence in Customer Service. The parlamind AI understands incoming messages from customers on a semantic level and thus determining intents, specific content and the mood of the customer in the message. Equipped with these skills, the AI engages in customer dialogue independently and quickly carries out the associated processes. Latest research results from the fields of computational linguistics and machine learning form the basis for the continuous further development of parlamind AI technology. parlamind has been part of the 4TechnologyGroup since July 2018. The 4TechnologyGroup is an association of technology companies from the communications and AI sector. Today companies worldwide in the industries of e-commerce, information and communication technology, energy management, logistics and financial services use parlamind’s AI solutions. More than 20 employees work continuously on the further development and marketing of this unique technology “Made in Germany”.
6 Customer Service KPIs That Every Logistics Provider Should TracktwitterfacebooklinkedinCustomer service as a valuable customer touchpoint has become a decisive unique selling point. Due to increased competitive pressure, logistics providers must also pay more...
Logistics: Strengthen Customer Loyalty in Your Company in Just 3 StepstwitterfacebooklinkedinWould you agree with the following statement? The success of a logistics company stands and falls with the quality of its customer service. No? Then you’re probably thinking...
How Distance-Based Communication in Customer Service Enables Productivity Despite the CrisistwitterfacebooklinkedinWould you rather pop to the supermarket or go to an online shop? For months now, many people have thought twice before going to a physical store....
Artificial Intelligence Made in Germany which conforms 100% to the GDPR