How Is AI Helping eCommerce To Enhance Customer Experience?

AI is beginning to embed itself into all processes of eCommerce.

Ruchika Drabla

Feb 17 • 5 min read

How to use chatbots to enhance customer experience

Businesses implement every process and strategy, innovative technologies and intuitive designs to improve the customers' experience. Implementing artificial intelligence is also a part of it.

Artificial intelligence in eCommerce is just about everywhere, from the recommendation system to the predictive behaviour to the after-sales service. Ecommerce giants are using different forms of AI to understand customer behaviour, offer them a seamless user experience, and engage with customers in a better way. Also, it is the artificial intelligence that is contributing to the process with more accurate data driving business intelligence.

Let's see how eCommerce businesses are using AI 

1.  Customer-centric search

Have you ever abandoned eCommerce experiences because the product results displayed were irrelevant? It was before AI entered the eCommerce industry.

Today, natural language processing is used to narrow, contextualize and improve search results. Besides, finding matching products, AI is also enabling shoppers to discover similar products.

2. An efficient sales process

Wish to create a strong sales message that reaches consumers at the right time on the right platform? Integrate AI solutions by into your CRM.

With natural language learning and voice input, many AI solutions allow a CRM system to answer customer queries, direct them towards the charted path and even identify new opportunities.

3.  Personalization across channels and devices

Personalization is nothing new for eCommerce, but AI-based personalization has taken the multi-channel, multi-device approach.

Be its mobile application, website, email campaign, social media channels, AI solutions monitor all channels and devices to create a universal view enabling eCommerce businesses to deliver a seamless customer experience.

4. Retarget potentials

At least 33% of marketing leads are not followed up by the sales team. (Conversica)

Many businesses are overloaded with customer data, but not many use it to enhance the sales cycle. AI solutions can segregate the potentials based on retargeting them.

Say, for example, a customer spends a notable amount of time exploring a specific product, this information can be used upon their next visit.

how eCommerce businesses using chatbots

5. Personalize the experience with chatbots and virtual assistants

E-commerce is now moving away from the herd mentality and focusing on building experiences for the individual. Several touchpoints generate purchases, and conversational AI is the perfect way to tap customers on those touchpoints.

Customers want convenience, quick solutions, the right guidance, and conversational AI with its confluence of visual, vocal, written, and predictive capabilities that offer just what the consumer needs.

Conversational AI-powered chatbots and virtual assistants by can easily take over some of the important responsibilities that include engaging with customers, solving their everyday queries, informing them about updates, staying connected with customers over different platforms.

6. Offer recommendations to customers

AI is being used to scan through customer data to predict customer behaviour that further helps to offer relevant recommendations to individuals. This also helps in delivering a personalized shopping experience.

Like how you get recommendations on the content you have previously watched on Netflix. The AI algorithms serve you more content based on what you search, explore and watch.

The focus is on hyper-personalization, facilitated by learning consumer behaviour and making predictions based on the data collected from user activities across devices, demographics, and likes.

7. Improved conversations

Conversational AI is solving the problem of answering questions automatically by leveraging content within the website pages. Also, the more the user interacts with the AI system, the bot or the assistant or the AI agent learns more and with every interaction becomes more intelligent and effective.

8. Localize the customer experience

By integrating solutions based on natural language capabilities, businesses can successfully personalize local recommendations for consumers. So if a user is searching for "weekend getaway trips near me", the AI solution would give them the options close to where the user is currently searching from making the result highly personalized and localized.

9. Predict customer lifetime value

Taking all data points into account, AI determines an individual customer's lifelong value. And, it is one of the most crucial long-term metrics to get right for eCommerce marketers as it helps brands understand which customers need to be segmented in which category and give them related offers.

It's Just The Beginning For The AI Bots

Chatbots are not new in the eCommerce world as brands have been using chatbots to engage, help and retain customers. Chatbots for eCommerce are typically designed to:

1. Offer product recommendations

2. Complete purchases

3. Provide customer support

According to a survey by Oracle,

1. 80% of businesses said that they already use chatbots or plan to use them by 2020. 

2. 48% of businesses are already using automation technology.

And, customers are not just chatting with the bot, they're excited to shop with a brand's bot.

1. 47% of clients are available to buy things through a bot. 

2. 71% of clients will get client support through a messaging application. 

3. Overall, clients will spend more than $55 on chatbot purchases.

Talking to a bot is not foreign anymore, nor it is impersonal. Chatbots are becoming more human-like, they remember what a customer prefers, are available 24x7, and can create engaging conversations.

Although there are multiple areas where AI in eCommerce can help you supercharge your business, there are only a few companies that are taking advantage of this disruptive technology. Most brands are still trying to figure out how to start. 

Let's take a look at the common barriers to AI adoption in eCommerce

1. Lack of Vision

A company needs to have a clear vision of how AI should be used and executed.

2. Expertise Gap

Not having the correct expertise acts as a huge barrier.

3. Bad Data

Collecting and storing data is okay, but it is both the quality and quantity of data that makes it valuable.

Artificial Intelligence Can Add Value To Your eCommerce Business

With the new normal, eCommerce is stepping into a new age of customer experience, and with the hottest technology at the back of your eCommerce business, you can get a grip on where to focus. AI technology is likely to have an enormous impact on the eCommerce industry. It will improve and change the way consumers shop online.

In a highly competitive space, thousands of businesses enter the industry each day, and for your business to be a success story, you need to understand how AI is contributing to the eCommerce industry and look for solutions for your eCommerce business.

Written by

Ruchika Drabla

Growth & Marketing Head at

Marketing growth professional with 9+ years of experience in all verticals of Performance Marketing, I'm an AI enthusiast and loving my role as Growth leader in Conversational AI startup

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