Leveraging Cognitive Computing in eCommerceby Ronak Patel Co Founder | CEO @ Aglowid IT Solutions
Cognitive computing describes technology platforms that combine machine learning, reasoning, speech, vision, human-computer interaction, that mimics the functions of the human brain & helps to improve human decision making.
AI is one of the best examples of Cognitive computing that will embed itself into all aspects of your lives. In today's tech trending world, AI is everywhere right from the growing number of self-checkout cash registers to advanced security checks at the airport.
Cognitive computing apps link data analysis & adaptive page displays to adjust content for a particular type of audience. It also has several impressive features, such as interactive, adaptive, stateful, iterative, & contextual.
AI is set to go into turbo drive in the upcoming years with tech giants such as Microsoft, Google already investing heavily in new AI initiatives. There are also tech firms such as IBM, Yahoo, & Facebook already developing AI as a new source of business.
Many e-commerce businesses solutions are already using forms of AI to understand better their customers, generate new leads, and provide an enhanced customer experience.
Today, Cognitive Computing in e-commerce has the following advantages:
(1) Data and their online purchase behavior:
Cognitive Computing in e-commerce can be particularly helpful in detecting hidden patterns in customer's data such as the brand preference of the customer, their online purchase frequency, their navigation pattern on the store, their life events are all the various data that make cognitive computing methods actionable.
Once the software has insights on all these factors, they are able to decipher a repetitive pattern that helps to build deep insights.
(2) Predicting Purchases in Advance:
Every retailer would like to know when the customer would make his next purchase. In a brick & mortar store, the retailer can drive some idea from the body language and repeat visits of a customer. An online retailer has to resort to cognitive computing in e-commerce to forecast this.
Through predictive analysis, it is easy to predict a customer's purchasing choice & frequency. Once you know about the upcoming trends, you can strategically place the products for the customer on their next purchase.
(3) Optimal Pricing:
Price fluctuations in the retail segment are very frequent. Fluctuations are based on various factors such as tax-related matters, festivals & events, supply constraints, and so on.
For the retailer, price fluctuation matters a lot. It also impacts customer's purchase preferences and very challenging for retailers to keep track of various fluctuations happening across portals and in the actual globe.
The price optimization tools are based on cognitive technologies is a savior too and helps online retailers to understand how the customers will respond to the fluctuated price so that they can price their products optimally. however, optimal price is all about retaining the customers as well while maintaining the optimal profit.
(4) Right Product Recommendations:
It is one of the important steps in creating a personalized environment for online shoppers. There are recommended systems based on cognitive computing in e-commerce that provide personal recommendations to the client.
These systems notify the customers about their preferences through mobile apps, social media pages, email newsletters. It also helps retailers to gain insights about customer behaviors & product performance.
(5) Business Process Management:
There are a lot of software programs & algorithms to help retailers & online merchandisers to manage their business processes.
Cognitive models help online retailers to manage their operations easily for better & engaging customer experience.
(6) Digital Voice Assistants:
Nowadays, people's browsing web is changing, such as you don't need to spend your precious time to type & scroll always; instead, you have voice assistants now at your service.
The best examples are Amazon's Echo Alexa & Google Assistant of cognitive ability based voice assistants that empower you to order your preferred products and have them delivered within the next new few hours.
(7) Empower store workers
Retailers have experimented with chatbots. There is some consideration of how to replicate the helpful experience in-store. Lowe, a home improvement store, is a good example of such implementation.
Lowe introduced the first autonomous robot in late 2014, named the LoweBot. The tall shopping assistant greets customers at the door, guides them around the store, sources relevant product information, and even assists employees with inventory management. This helps Lowe to free up their experienced store workers to engage in more meaningful interactions with customers.
Online retailers across the world are increasing their investment in cognitive computing in e-commerce. They have recognized that only studying purchase patterns based on age, gender, and income is not enough. AI allows businesses to provide a more personalized experience for their customers & also make it possible for e-commerce retailers to analyze millions of interactions every day and target offers down to a single customer.
Created on Dec 17th 2019 05:41. Viewed 303 times.