How Amazon And Alibaba.Com Are Using AI And ML To Improve The Customer Experience

Gokul Solai July 19, 2022 0 Comments

AI (Artificial Intelligence) and ML (Machine Learning) are helping many industries improve their performance through better models to process and interpret data, such as retail companies. If you are running a business in the retail sector, you can use these technologies to drive an upswing in your sales and bottom-line results. This article discusses some use cases of AI and ML that could boost your retail business’ revenues with better insights into customer behavior and buying patterns in your store or online e-commerce websites. 


What should AI do? 


It is essential to recognize that AI is still evolving, and companies use machine learning to collect and analyze customer data to predict customer behavior. For example, Amazon’s patent anticipatory shipping service will send out packages before orders are placed – targeting individuals who historically have had a high propensity to buy those products. However, other ways to use AI might be more applicable to your business. If you sell clothing or shoes online, you could use image recognition software to scan pictures from social media sites like Instagram and Facebook and then match them with similar items on your site. Or, if you operate an e-commerce store, you could use chatbots to answer questions directly from consumers via messaging apps like Facebook Messenger. These solutions can make shopping more accessible and convenient for consumers by providing instant access to information (like size charts) without leaving their social media feeds. They also help businesses capture valuable customer information, potentially assisting in future sales campaigns or product development processes.  


What should ML do?  


Machine Learning is used mainly for two things: personalization and automation. Personalization allows businesses to tailor their offerings based on what they know about individual customers; it helps brands target specific demographics with relevant offers and content that resonates best with them. Automation helps streamline organizational processes so that employees can focus on higher-value tasks rather than mundane ones. 



What can you leverage now? 


Thanks to technology, we can gain many benefits through predictive analytics. For example, if we look at Amazon Prime’s next-day delivery service, we can see how artificial intelligence helps make more accurate predictions about which products to order. They could use machine learning algorithms to predict when customers would run out of items they had previously ordered and what specific things they would order next. This mechanism allowed them to start placing orders for those items before they were requested, helping them save time and money while providing customers with an improved shopping experience. 


What is an AI-powered retail environment? 


Let’s look at Alibaba’s Tmall Genie smart speaker as another example. Alibaba’s AliGenie AI system powers this speaker,  which allows it to listen in on customer conversations and then provide personalized product recommendations based on that information. For instance, asking about a specific product or service can help you find what you need without an extensive search. And if you don’t have something specific in mind but are looking for inspiration? The Genie can help with that, too—it can help point out new products or services you might be interested in based on what other customers have purchased. 


By leveraging artificial intelligence systems like these, we can make our businesses more efficient while improving our customers’ experiences. 


How to make your customer shopping experience more enjoyable by leveraging AI 


Leverage AI in your retail shopping by using data science. You need to understand your customer shopping trends in specific departments or even an individual product at a particular time of day. Many cases require individualized experience for a customer; use Machine Learning to perform tasks like product recommendations based on the history of customers. For example, if you know what products a customer has purchased previously, you can recommend similar products. These recommendations will increase your sales drastically. Another way to leverage AI and ML is by understanding which products have high demand so that you can push them out first when restocking inventory. Similarly, if there are low-demand products, you can push them out last when restocking inventory, helping you maximize profits while minimizing inventory carrying costs and reducing storage space requirements due to less stocked items. 


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