The big call to action for those running eCommerce businesses or brick and mortar stores is to embrace these processes ASAP. As shown in the visual above, the big players are already there and a big part of their success can be traced back to their constant improvement of shoppers’ experience.

Some of the most efficient applications of machine learning in retail:

  • Segmentation and targeting: Provide bespoke shopping experiences that take into account who the customer is, what they like and dislike, and offer the most accurate version of the product they need.
  • Security: Proactively noticing flaws and loopholes in the system before the fraudulent behavior is an impossible task for security experts without machine learning. Using AI, they can run tests at a larger scale, leveraging the mountains of data from previous transactions.
  • Pricing optimization: With so much competition, retailers can’t rely on a set market price for all their potential customers. Instead, through machine learning, they can provide visitors with the price that makes the most sense for them based on past transactions, time and date, and other external factors.
  • Goods and services recommendations: Knowing what your customers have liked in the past and using it to predict what they will need in the future has proved successful for tech giants in the past and can become an essential source of revenue for your organization. 35% of what consumers purchase on Amazon (and 75% of what they watch on Netflix) comes from product recommendations from AI algorithms.

AI will be a game changer for eCommerce and fundamentally change the way consumers shop for goods, quickly digesting all the complexities of your situation while merging and analyzing all your disparate data sources with the goal of taking care your customers’ shopping needs.

‘Business as usual’ is no longer a certainty. Yet you should only worry about talks of the ‘retail apocalypse’ if you’re not thinking of ways to update your eCommerce platform and ensuring that your customers’ experience is as familiar, intuitive and bespoke as possible.

Contact us to learn how we can help you create powerful eCommerce experiences.