Machine Learning in E-Commerce: A Relation to Last
All these three are interlinked to one-another.
Artificial Intelligence (AI) : It is the ability of a computer controlled robot to perform a task, similar to a human being or best described, human intelligence.
Machine Learning (ML): It is a branch of AI which develops itself by acquiring knowledge through present and past experiences, applying them to
handle new situations
analyze situations through self-observation and also through training if needed.
It was once quoted by a great British mathematician, Alan Turing in 1947,
..What we want, is a machine that can learn from experience.
His words have come true after so many years and creating ripples across, in so many different ways ML has affected E-commerce.
Some of the few examples of our daily life wherein machine learning is implemented are in
Virtual Personal Assistants (VPA) like Alexa and Google Home etc
Social media service in Facebook, Pinterest etc.
Online customer support or Chatbots.
Medical diagnostics and many other fields.
The above mentioned fields where just a few of the many applications and industries which define the massive reach of Machine Learning, which is still expanding, day by day, as we talk about it!!
Machine learning has been there in the industry but was previously used only by large scale industries, but with the development of the internet and accessibility of mobile phones, it has become a regular and commonly used method, by small businesses too. They are also exploring into the field and reaping great benefits.
Machine Learning and E-Commerce
We might think whether is it possible for Machine Learning to have its reach in the booming field of E-commerce, but the thing is, it’s reach is far too deep than we can actually imagine.
E-commerce sites like Amazon, Ebay and Flipkart have been using Machine Learning to enhance and upgrade their website products, its features and make it easier for the customers to find their desirable product in lesser amount of time.
How do E-Commerce websites utilize Machine Learning?
An example of the usage of Machine Learning in E-commerce is, it helps us to find the product we need on the website. Let us understand by taking a daily life example related to it. Normally, when we go to stores/ malls, we have sales guys/girls to whom we can ask and know more about the products present there, they come to know what kind of clothing we need(they are the shopping assistants basically), by the way of our talk, our body language, and suggest accordingly, helping us to narrow down and finally select the desired one. This helps us to get details about the products we don’t know, its features, the value for money and makes us satisfied. The same thing is adapted by the E-commerce websites, where they have either customer support (calls or chat) or also, Chatbots. The name itself specifies its function, chatting robot. Whenever we have a doubt about any of the products, Chatbots respond like real people and help us out through the same.
Must to do with Machine Learning for your Ecommerce Site
Right thing at the right time
An e-commerce website like Amazon or Flipkart have thousands of items on it.
Sometimes, we just need a particular thing from a website, but we don’t know all the details about it, at that moment, it becomes quite a tedious task to type each and every detail about the thing we want and then see the long list about it. This causes a waste of our time and energy. If someone is patient enough, they will spend that much time to search for the product, or mostly, everyone will just exit the website, which would be bad for any business as they will be losing a potential customer.
2. Customer Needs and Trends
Every person has their own choice of things and it keeps changing time to time. Sometimes, we want a particular product from a website, but while scrolling and searching, we find something new, get attracted by it and may finally end up buying it. These similar products, like the one we want, are suggested using the concept of Machine Learning itself. We get these suggestions in two manners-
i. According to the similar products
While we are searching for our desired product, we get suggestions which are related to the products we are finding. This helps us to know similar kind of products and provides a personalized experience, which in turn gives customer satisfaction, resulting in profits for the business.
For example, if a customer A has bought a pair of shoes with a pair of socks, and another customer B is buying a pair of shoes, the website suggests customer B, the pair of socks bought by customer A.
ii. According to the people who brought the product
The e-commerce websites also show us the products bought by others, which, in a way helps us to stay assured and thus drive us into buying the product ultimately.ML compares the profile of the people who have already bought the product to ours and shows the suggestions accordingly.
These suggestions, not only help us in buying the product, but also let the e-commerce website know the present interests or trends of the people, and help them develop it in a better and personalized manner.
3. Marketing Budget Optimized
Businesses spend large amounts on marketing campaigns in order to increase their customer base. Sometimes, they end up spending huge amounts but do not get the required result. ML helps the websites and businesses to know about the people and their interests. This helps them focus on it particularly, in turn saving the revenue of the business and gaining profits.
4. Personalized choices available
All E-commerce websites are loaded with various kinds of coupons and offers,from time to time. This is nothing, but an application of ML, which provides offers and discounts to the customers visiting the websites and selecting any particular item as per the algorithm set.
Another example is of the mail we get, if any item is left in the cart but not ordered.This reminds the customer to order it, in various time intervals and sometimes even offering discounts.
ML in any e-commerce or other business, would definitely impact it in a positive manner pertaining to all the above reasons, increasing customer satisfaction, resulting in the increase in SALES and PROFIT. If you’re an ecommerce business and you’re not on board with machine learning, you’re getting left behind. The benefits of the tech to your sector, after all, are numerous. From customer experience to inventory management, machine learning can make you more efficient.