Machine Learning in Ecommerce: Three Successful Cases

What is Machine Learning?

If the “Machine learning” is too sophisticated to grasp the meaning behind the phrase, you may replace it with “self-learning computer algorithms”.

Whoever you are, whatever you do, you can’t avoid hearing machine learning over and over these days. It’s because this branch of computer science has been the main focus of a lot of data-related tasks. But, what exactly is machine learning?

To put it simply, machine learning is using data, computer science, mathematical algorithms and all the tools available to predict human behavior in a wide range of fields, from calculating the probability of a social unrest to the things that may be of customers’ interest, what people may do in their week nights, which link they may click in their emails and the other unimaginable corners of human experience.

What Machine Learning Can Offer You

We can categorize the benefits of using machine learning into four main experiences:

●     Encouraging customers by using personalized services

Feeding from search histories, online activities and all the data gathered from a certain customer, machine learning can offer specialized recommendations much to a higher percentage accuracy than any other marketing techniques.

If you want to know more check out the ways to personalize online shopping experiences.

●     Automated interactive customer services

You are running an Online Clothing Store and you are expected to be present at any given moment.

On the other hand, you may not be able to afford an employee to be present all the time. If that’s the case, you can implement chatbots in your system to communicate with customers.

If the inquiry is not a complicated one, machine learning can provide customers with primary answers. Then you can handle it personally, if necessary.

●     Machine Learning, your private detective

We are all aware of the threats lined up against safe transactions, customers data protection, all kinds of online frauds and so on. Machine Learning, familiar with all the routine patterns of your business, can detect whatever sneaky move in your Online Clothing Store website to guarantee the security of the network.

●     Organizing the business

To handle inventory management, taking orders, making the deliveries and the other inherent tasks of your operation is in the center of your business, and it should be conducted as satisfactory as possible for both sides, you, and the customer.

Having all the related data in its algorithms, machine learning can make you proud in all these sections of the job.

Machine Learning and Optimizing Conversion Rate

conversion rate, being the number of the visitors you have successfully turned into buying customers, is an important factor in business to be profitable. You need to have reliable information analyzed carefully and put the outcome into the best use to achieve this goal.

What brain is capable of predicting customers behavior and adjusting the suggestions by their needs and preferences? That’s right, Machine Learning!

For more information, follow conversion rate optimization in fashion ecommerce.

Design More Productive Marketing Campaigns

You create every marketing campaign based on the relevant information, and you try hard to make it more fruitful; but it doesn’t always pay off. It’s partly because we, as human beings, have less processing ability to study, compare and memorize a huge amount of data in a short period of time. But, machines can do that.

In other words, machine learning apps can make the data actionable. This is why they can help you design more productive marketing campaigns. They can make more accurate customer segmentation, and lead the way to target the best group of potential buyers. In this process, they face them with your products, offer them the most suitable options, and persuade them to put aside all the doubts and click on the button “add to chart”.

Making Decisions More Informed

Processing relationships, recurring patterns, and anomalies in all the gathered data, and feeding it to mathematical algorithms, will definitely provide a Clothing Store’s manager with well-studied details to rely on when making decisions.

Balancing the Price Vs. Pocket (Dynamic Pricing)

Let’s say, through marketing, optimizing your SEO and the other tools available, you have been able to attract potential customers to your website. Do you know how much are they willing to spend? What if your products are way more expensive for them?

This problem, by introducing affordable items to customers, personalized discounts, and other promotions, can easily be solved by the big brain, machine learning.

Churn Prediction

Churn prediction is calculating the number of people who turn their back on a brand and do their shoppings somewhere else. Making new friends is a MUST (especially in marketing your business), but you’re always going to need your old friends as well. How about applying this rule to an eCommerce business?

If you can spot the key points that may lead the customers to the point of changing their minds and leaving your eCommerce Clothing Store, you may be able to convince them to stay a little longer. Machine Learning is the helping hand in this process to prevent your good old friends from abandoning you.

What to Consider in Using Machine Learning

Maybe there are some lines of work, some operational necessities, that you can handle yourself, but this one is in the realm of experts. So, have a sitting with your ego, and make sure to mention:

• Understand its nature and function
• Leave it to an expert
• Find the weak points in your operations to work on

Three Successful Examples of Machine Learning Being Used in Ecommerce

Virtual try on

Customers’ buying habits are changing, and exploring the experience of online shopping is growing increasingly. Moreover, pandemic was a challenge for brands to keep sales afloat, and online shopping was a logical alternative for them as well.

But, there are some goods that every customer may want to try first. Who doesn’t want to wear a shirt before paying for it? And this is where Virtual Try-On enters.

Virtual Try-On apps provide customers with an AI-based tool to wear various products (glasses, shoes, cosmetics…) virtually, and try them.

This technology has been beneficial for both ends of shopping: buyer and seller. Online Clothing Stores like Robosize, equipped with Virtual Try-On apps, are acting like a patient shopkeeper, giving the customers all the time they need to wear all the products they long for, spending hours and hours thinking about it, asking their friends’ opinions to finally decide about buying it.

Product Search Via Image

This tool is another product of machine learning technology that allows the customers to use the image of a product to search the same product or similar products in an online store’s self-managed image archive.

Imagine that you see a T-shirt on an actress in a late night show, and you fall in love with it. Are you going to call the TV channel to track down the brand and find your beloved T-shirt? No need to do that. Just take a picture and search for it in Online Clothing Stores.

Amazon Alexa

Employing Alexa, Amazon’s virtual assistant that works on voice recognition technology, allows the online stores to take orders by voice; another convenient way to facilitate the shopping experience.

Alexa’s users can help it to have more personal information about them by having an ID. This way Alexa can detect the user’s possible items of interest and make the shopping a fast, pleasing, productive one.

Conclusion

Just taking a look at statistics can tell you all you should know about the efficiency of Machine learning and its adoption impact on revenue increases. Machine learning tops all the AI funding worldwide by 28 billion dollars, and according to the same report, 80% of people said that AI has helped increase revenue (by 2020). So, it’s no wonder that based on another study conducted by IBM, 35% of companies report using AI in their business, and an additional 42% of respondents say they are exploring AI.