06 Apr 2020
Magento partners : How AI is changing ecommerce
Shireesh  Gupta
Shireesh Gupta
Marketing Specialist

Magento has been a powerhouse in getting innumerable ecommerce live and supporting them to build successful ecommerce brands. Magento-powered ecommerce stores are part of the $3.46 trillion ecommerce market. In addition, consumers are increasingly moving to ecommerce as the sole medium for shopping – with around an estimated 2.05 billion digital buyers in 2020. To keep up with this staggering market demand, Magento partners need to be much more agile and provide the best experience to a shopper.

This agility and speed have become increasingly feasible as artificial intelligence becomes more closely tethered to businesses and consumers in the ecommerce economy. With personalized marketing, chatbots, and voice-controlled assistants, consumers know what they want sooner, can inquire about products easier, and make their purchases faster. Backend business processes and inventory management have also rocketed by implementing AI in cloud-based ERP systems and supply chain management software – staying prepared for customers day and night.

Personalized marketing

AI's ability to digest and analyze consumer data has made personalized marketing campaigns incredibly sophisticated. Using AI, many Magento partners can deploy effective ad targeting, product recommendations, and even dynamic websites where web page content changes depending on a visitor's purchase and browsing data.

Consumers are bombarded with advertisements daily to the extent that they are desensitized to adverts. It's essential that adverts are hyper-personalized and directly speak to a consumer, tackling the pain points. Otherwise, adverts will not have an influential role. Leveraging AI to create personalized messaging is key here. For example, creating UAC ads or emailer content based on past purchase data of consumers and carrying relevant recommendations will be highly effective. Utilizing AI for this purpose will ensure that this can be done on a scale. This approach feels more authentic to consumers, who are more likely to remain loyal to a certain brand. AI in marketing is bringing customers better information and, in turn, moving them through the sales funnel much faster for all Magento ecommerce stores.


Effective engagement

As marketing has become more sophisticated, so too have consumers' buying habits. 81% of retail shoppers conduct online research before buying. Whether purchasing in a physical store or online, responsible consumers are almost guaranteed to complete their due diligence before making a purchase. For all Magento ecommerce stores, you should provide the absolute best resources for your customers. If a consumer researches a competitor's website rather than yours, it's implausible that they will purchase from your website. AI-powered chatbots for Magento partner websites can be the solution here. Chatbots assist customers by navigating the site, offering product recommendations, providing customer support, and even completing purchases. This will help consumers conduct their research and give them confidence that assistance will be available when the need arises for customer support. Another great resource to have connected to your Magento ecommerce platform is the ability to use voice-controlled assistants, like the Amazon Echo and Google Home Mini. If these tools can control your product through the Internet of Things(IoT), customers will likely be influenced to purchase your product over others. This will provide a more personal experience for users and will soon be a customer expectation for any ecommerce site – Magento or not.

Backend business processes

While customer interactions continue to evolve as AI creeps into every shopping experience, AI in cloud-based ERP systems is reshaping Magento-based ecommerce stores behind the scenes. It makes business processes faster, more accurate, and more connected than ever. By centrally locating everything from ledgers to logistics, Magento partners can use AI's predictive analysis and make important business decisions based on their findings. An ERP system connects the stockroom clerk to the CFO and allows businesses to act fluidly as new logistic obstacles arise. The system connects coworkers in real time so minor problems can be solved quickly and not grow into bigger messes. The ability to collect real-time data also helps Magento partners to make decisions based on insights from AI. That means as customers buy products day and night through ecommerce sites, businesses can stay on top of the constant need to move those products around the world. How soon will AI be deploying shipments based on predictive analysis of data gathered from past logistics? When considering AI's role in ecommerce, it is hard to imagine how much further it will evolve. The opportunities are infinite; what is essential is keeping up with the advent of new technologies and making them part of your tech stack as Magento partners so that you are always ahead of the curve.

Unbxd is a Magento Partner and works with many Magento-powered stores to help improve their website search, recommendations, and browsing capabilities. Unbxd's Product Information Management (PIM) systems also work in the background in automating backend business processes and inventory management. For more information, you can book a demo!