How Retail Industry Can Utilize Machine Learning?
Long ago retail industry has embraced technology for extending their storefront to customer’s fingertips. In fact, there has been a subtle transition between how customers and brands react with one another. Today, customers are knowledgeable; almost 81% of customers conduct independent research before entering the store.
Mobile apps, Shopping carts. Online payment portals and discount couponing websites have changed the way we used to shop. It has become easier to shop your favorite products from social media and compare prices without even leaving the store. Although the retail industry has evolved a lot due to digital technology, you can say it still is in its infant stage. Need All said features to check Sphinx Solution’s eCommerce Development Services.
Implementing Machine Learning Tools Has Enhanced Customer Experience
Have you lately logged on to any of the e-commerce websites? Have you noticed the change?
For example, log-on to Amazon.com and you will be welcomed with an entirely new shopping experience…only if you have witnessed it. The advertisements and the special deals are all tailored to suit your unique shopping behavior based on your previous browsing habits.
E-commerce giants like Amazon were the first few to venture into customer data collection and analysis. They did this to enhance their services and personalize the consumer shopping experience. In fact, some of the online shopping websites have become so predictive, that they understand what you will be purchasing today, way before even you make up your mind.
The Archetype Shift in Retail Industry
There has been a paradigm shift in the way businesses used to interact with their customers, due to the advancements in digital technology. Increasing competition, a growing number of touch points and limited opportunities it has become more important to satisfy a customer on a person-to-person level. In order to offer enriching customer experience, developed customized and customer-centric interactions the pressure of offering absolute Omni-channel communication has made it inevitable for the modern retail industry to use of machine learning tools and applications.
Five Machine Learning Possibilities to Enhance Customer Experience
- Search Analysis: After implementing machine learning, e-commerce business owners are able to analyze customer queries on their website. By implementing precise machine learning tools and data analysis modules, it will be easier to analyze past click through, preferences and purchase history. With the ability to generate results based on predictive analysis, e-commerce business owners are able to improve sales and increase profits.
- Recommending Products and Promotions: With the power of predictive analysis, it is easier to determine key recommendations to the customers. If you aim to increase, cross-selling and interested to lure prospect customers by matching their demands more efficiently it is better to implement attribute-based, item-to-item or user-to-user correlation type of machine learning methods. With these methods, predictive analysis becomes simple as you are enabled to understand the customers and their needs based on his/her purchasing history, the behavior of product browsing and the popular product’s on a website.
- Analyze Customer Sentiments: Sentiments do play an important role in determining and understanding consumer behavior. Product reviews by a customer help a great deal in analyzing consumer sentiments; especially those related to service, product quality, and price. Brace natural language processing due to which you are able to make such analysis, which comes handy while forecasting future product sales.
- Recognizing Images: Advanced machine learning tools empower e-commerce businesses to identify similar products depending on the product images clicked by a customer. This makes it possible to display products customers are more likely to buy.
- Fraud Prevention: Machine learning is widely acclaimed and accepted to find, prevent and analyze online fraud detection. Be it taking over accounts, astroturfing, fake accounts, transaction drawbacks or any fraud, with the implementation of right kind of algorithm you can detect ongoing fraudulent activities and predict possible frauds way in advance.
If you think implementing machine learning solutions or machine learning application is a regime of only big e-commerce companies. Think again… Today machine learning is widely employed by many e-commerce companies as the commercial software’s are now easily affordable by a number of online retailers.