Author: Esraa

Chatbots are the new buzzword in the digital marketing industry. The use of chatbots can make your business stand out from the crowd and increase its customer base.

Chatbots are the technology that is most talked about in today’s digital marketing. It is a part of the AI era and it has opened up new opportunities for businesses to interact and engage with their customers like never before.

The idea behind chatbots is not new but the technology used to create them has changed drastically over time. We have seen chatbots being used for personal assistants like Siri, Cortana and Google Assistant but the scope of chatbots is much broader than just helping you do things around your home or office.

Chatbot in Digital Marketing

With the advent of voice search and virtual assistants like Alexa, Cortana and Siri, it was only a matter of time before marketers started using this technology as well. The first step towards using chatbots in marketing was taken by Facebook Messenger when they launched bots as part of their platform in April 2016. This move by Facebook was followed by many other messaging platforms like WeChat (China), Line (Japan), WhatsApp (Facebook), Slack etc.

Look no further if you’ve been trying to figure out what chatbots are, what they can do for you, and how to use them. Everything you need to know about chatbots will be covered on this article.

What is a chatbot?

Chatbots are computer programs that mimic human interaction for a variety of purposes. Examples include using chatbots to answer simple customer questions, provide information or entertainment, and perform functions such as online banking.

Chatbots can be designed to respond to a specific set of user inputs and produce a specific output. They are usually implemented through natural language processing (NLP), but increasingly use machine learning (ML) techniques also.

They are typically used in the form of question-and-answer systems, where the answers are provided by database information and rules for how to respond to specific questions. The term ‘chatterbot’ is sometimes also used to refer to this type of system, although its original meaning was an artificial intelligence software that conversed with human users.

While some readers might think of chatbots as simple scripts that provide canned responses to inquiries, they’ve evolved into much more than that. Chatbots can analyze data and make decisions based on it. They can even learn from past interactions with humans so they’re able to provide more accurate answers over time.

Chatbots are also growing more intelligent thanks to natural language understanding technologies such as artificial intelligence (AI). These technologies enable chatbots to understand what you mean when you ask them questions — even if you don’t ask them in exactly the same way every time.

Chatbots are used for various tasks including customer service and marketing. In some cases, chatbots may be used to automate the jobs of real employees. Some companies use chatbots to engage with customers; for example, Domino’s has developed a Facebook Messenger bot that customers can use to get information about their orders.[2] Other companies use chatbots internally for use in productivity enhancement or administrative functions.

The most common form of chatbot is an intelligent virtual agent that appears as either an app or website on your mobile device, desktop computer or other connected device. These agents tend to be built using natural language processing and machine learning technologies.[3] They can understand you when you speak to them (textual) or through your actions (non-textual).

What are the benefits of chatbots?

Chatbots offer businesses an opportunity to engage with customers in real-time, solve problems and drive sales — all without the need for human intervention. Here’s how:

 A customer service chatbot provides 24/7 customer support and can handle any type of query — from product information to help finding a store location — in seconds.

Chatbots can help you scale your business by automating your marketing efforts and reducing costs associated with hiring human resources. In fact, chatbots can reduce marketing costs by as much as 50%.

For example, if you have an ecommerce business that sells products on Facebook Messenger, then you could use a chatbot like Pillow Talk to schedule Facebook ads based on user preferences and interests. This way, you don’t have to spend time manually creating ads or planning out campaigns yourself. In addition, Pillow Talk will help create custom audiences who see your ad so that you don’t waste money by reaching people who aren’t interested in your product or service. This makes it easier for you to reach the right audience at the right time — which means higher click.

Chatbots improve customer service, according to survey by LivePerson found that 50% of consumers would rather use a chatbot than speak with an actual person when they have a question or complaint.

Chatbots are great at handling routine queries from customers so they don’t need to wait on hold or make an appointment with an agent. This frees up agents to handle more complex issues and focus on building long-term relationships with customers instead of just handling basic questions.

Chatbots reduce costs because they can eliminate the need for expensive call center agents who can charge anywhere between $8-$25 per hour depending on their skillset and location. It also eliminates the need for expensive software licenses since many chatbot platforms are free or have inexpensive monthly fees.

Chatbots are an easy way for businesses to communicate with their customers, either through text or speech. For example, if a customer has a question about your product or service, they can submit it via Facebook Messenger or another messaging app and receive an answer from your bot almost instantly. These answers can be customized based on each individual’s preferences.

One platform for all customer’s queries. While using a chatbot on a single channel can have its benefits, you will gain the most if you can integrate a chatbot so that it is connected to all of your communication channels. This utilizes the bot’s effectiveness across all channels and also allows your staff to manage handoffs from the bot on a single platform.

Chatbots can also be used for marketing purposes by sending out personalized messages to users based on their behavior and preferences. For example, if someone adds something to their cart but doesn’t check out right away, a chatbot could send them an offer to get them back into the buying process as soon as possible before they forget about it entirely.

Chatbots can also help you personalize your customer experience. For example, if everyone in your company uses the same chatbot to respond to customer questions, it’s likely that your customers will hear the same answers each time they ask something. That can get annoying for customers who are looking for personal attention from their favorite brands.

A good solution is to have multiple chatbots — one for each department — and let each bot respond only to queries that are relevant to its area of expertise. This way, you can ensure that every customer receives a personalized response from someone who knows exactly what he or she needs.

Chatbots have even been shown to increase productivity among employees by taking over tedious tasks like scheduling meetings or ordering supplies. They can also help employees focus on more important tasks at work by answering simple questions quickly and efficiently so they don’t need to interrupt busy people with trivial requests that could easily be handled by automated systems like chatbots.

Finally, chatbots can improve customer engagement and satisfaction — which ultimately leads to increased sales — by presenting offers or coupons at key moments during conversations.

Types of chatbots

Menu Based Chatbots

This type of chatbot has a list of pre-defined responses that it can give to users. The answers are stored in a database and they are triggered when you ask specific questions.

A menu based chatbot is one of the simplest types of chatbots. It works by responding to simple commands like “yes” or “no”. For example:

A customer wants to buy a product from your store. They ask for it by typing in the message “I want to buy this product”. The chatbot replies with “Ok! Please select your shipping address and payment method”. The customer then selects their shipping address and pays for their order using Paypal/Venmo etc.

Rule-Based Chatbots

This is similar to menu based chatbots, but they have more flexibility in their answers because they use algorithms instead of databases. They can also learn from previous conversations so they can give better answers in the future.

A rule-based chatbot works by searching through a database of rules that were created in advance by an expert bot developer using Natural Language Understanding (NLU). The NLU allows users to ask questions about specific items, categories or phrases and has been trained to respond with the correct answer.

Smart chatbot

A smart chatbot relies on artificial intelligence (AI) and Machine Learning to learn from past interactions and adapt accordingly when new information comes in. For example, if someone asks it how long it takes to get from Los Angeles to San Francisco by air, it will be able to tell them exactly how long this trip would take based on current flight schedules and weather conditions.

They don’t just read from a set of rules but understand natural language and context too. With smart bots, if you say “I love dogs”, they will understand that you mean “I love dogs” and not “I love doggies” which means something else entirely.

Hybrid chatbot

These combine both rule-based and smart bots into one product which allows users to use their own words or choose from preprogrammed one. Although they have the ability to perform some rule-based activities, they are also able to understand the meaning and context of messages in order to respond in a way that is more similar to a human.

Voicebot 

A voicebot allows its user to communicate with a product or service by speaking. A voicebot can understand the spoken inquiry or request and craft an appropriate audio answer using artificial intelligence and natural language processing (NLP). You can think of a voicebot as a smart chatbot, even though they are not the same thing. Both utilize the same underlying technology and are made to recognize a customer’s query, find the appropriate response, and give it.

Voicebots are unique because they move more quickly. Voice is the most rapid mode of human communication; it is quicker than typing or using a mouse to select options from drop-down menus. As a result, voicebots have enormous potential for improving the level of customer support a business provides.

Chatbots through the marketing funnel

The main benefit of chatbots is that they can be used at any stage of the marketing funnel. They can help you with everything from generating awareness to converting leads into sales.

Here are some ways you can use chatbots:

Awareness stage: Chatbots can provide valuable information about your products and services, allowing customers to learn more about you before they make a purchase. This helps to build trust by giving potential customers an opportunity to interact with your business before committing to making a purchase decision.

Engagement stage: Chatbot technology provides an easy way for customers to receive answers to their questions, which makes it easier for them to engage with your brand. They can also be used as a virtual assistant or concierge service, providing useful information and responding to customer queries 24 hours a day, 365 days a year.

Consideration stage: Chatbots can be used as an interactive tool during the consideration phase of the buying cycle by helping potential buyers find products or services that suit their needs. This is particularly beneficial if you want to target users who may not be ready to buy immediately but are looking for more information about what you offer before making their final decision on whether or not they’ll purchase from your company in future.

Conversion stage: a chatbot can help answer questions about pricing and product options, schedule an appointment or make reservations, or even process payments.

Chatbots can help at every stage of the customer journey

One of the reasons chatbots are so effective is because they can help customers at every stage of the customer journey. Here are some ways that chatbots can be used:

Searching for products/ services – Chatbots make it easier for customers to find what they’re looking for by allowing them to search for products/ services by keyword or category, helping them avoid having to wade through pages of results.

Checking prices – Customers don’t always know what they want until they see it — so if they’re not sure exactly what product or service they require at this stage, it can be useful for them to compare different options before making a decision on their purchase. Chatbots can provide this functionality by comparing products against each other and suggesting alternatives based on user input or personal preferences (e.g., size/ color).

Onboarding: Chatbots make it easier for new customers to set up their accounts and get started. They can also answer questions about how to use products or services and provide product demos.

Make it easy for them to buy. Once someone has decided that they want to make a purchase from your company, having a chatbot as part of your website makes it easy for them to complete their order without having to wait on hold or deal with an online form. A chatbot will take all of the customer’s information and then process their order.

Customer support: Chatbots can be used as virtual assistants that answer simple questions about your business or product. They can also help resolve more complex issues by connecting customers directly with human customer service representatives when necessary.

Marketing communications: Chatbots can send personalized messages based on what someone has done on your site or app, such as buying something or signing up for an account. They can also send updates about promotions and new products or services you may offer.

When customers need help with an issue or question, a chatbot can answer their questions quickly and easily so they don’t have to wait on hold or call again later. This helps reduce friction in the customer experience and makes it easier for them to resolve their problem quickly and efficiently. For example, if a customer needs help finding a hotel room during peak travel season, Booking.com’s Booking Bot can search for available rooms that meet their criteria and then book them directly through the bot.

How can you use chatbots for your business?

Resolve frequently asked questions

Your customers may have many questions about your products or services that they would like answers for before making a purchase decision. Chatbots can answer those questions quickly and easily by providing a list of relevant articles about products or services that you offer. This helps customers make informed decisions about whether they want to purchase from your company or not.

Collect customer data and information

People love talking about themselves so it makes sense that businesses should take advantage of this opportunity by collecting customer data and information from them through chatbots. The AI technology can ask customers basic questions such as their names, email addresses, phone numbers and other personal details that they prefer not to share with sales representatives over the phone.

Better customer support 

A chatbot can handle routine tasks such as answering simple questions about products and services, searching for information and scheduling appointments. This is especially useful when dealing with large amounts of customers on social media platforms (Facebook Messenger and Twitter).

Recommendations based on the user’s interests

Chatbots can analyze the data collected from previous conversations and recommend products or services based on the interests of each individual customer. For example, if a customer has shown interest in one type of product but hasn’t bought it yet, the chatbot will suggest other similar items next time they log in or send an e-mail message.

Offer sales assistance

Chatbots can interact with customers in real time to answer questions about products, services and more. This is particularly useful for upselling or cross-selling products or services, because you can offer a range of options based on what the customer is looking for.

Prevent abandoned carts

If you have an ecommerce website, chatbots can help recover abandoned carts by asking customers if there’s anything else they need before they check out. For example, if someone adds a product to their cart but doesn’t complete the purchase, a chatbot could send an automated message asking if they want additional items added on.

Provide personalized service

Chatbots can be trained to recognize certain words or phrases so they provide personalized responses based on what your customers ask them. For example: “I need new shoes,” might prompt one response while “Where are my sneakers?” might prompt another response entirely.

Chatbots are especially useful if you have a physical store. You can set up a bot to answer basic questions about products or their availability at different locations.

Upsell and cross-sell

A chatbot can start a discussion with a customer based on what they are looking for or the page they are on and guide them toward alternative options that might be applicable to what they had in mind.

Similar to this, the chatbot might suggest things that “go along with” the one the customer was seeking for by analyzing their intent. Consider these to be product suggestions that are more conversational in nature, like a dialogue with the salesperson you just met.

Make ordering easy

One of the most common uses of chatbots is making it easier for customers to order products or services. It can be as simple as having a bot that allows customers to place orders, or it can supplement live agents with basic questions like “what would you like?”. In some cases, it can even replace the need for an agent altogether!

Make order tracking easy

Another common use case for chatbots is tracking information about customer orders. This could include tracking when an order was placed, what items were ordered and if there have been any changes since then (such as shipping address). This data can be used to improve customer support by better anticipating their needs and making sure they get what they want when they want it — all without having to contact customer support directly!

Collect reviews and feedbacks from customers

Another great use for chatbots is collecting feedback from your customers so that you can improve your products or services in future releases or versions.

Order tracking

You can use a chatbot to offer order tracking to visitors on your website and social media accounts. Visitors will be able to ask where their order is, see if it’s been shipped and even get a message when it arrives at their home address.

Educate your customers

A chatbot can help educate your customers about products, services and more with just a few simple questions. This is especially helpful if you sell something complicated or high-end that requires more information than simply reading from a description on your website or social media account.

Lead generation

A chatbot can also be used as a lead generator by asking visitors certain questions about their needs and interests. The answers can be used for marketing purposes by adding the visitor’s information into a database for later follow-up or segmentation purposes (e.g., email campaigns).

Process return and exchange requests

Customers may want to return or exchange items they purchased from you because they changed their mind sometimes, a chatbot execute these tasks instead of customer support agents in your company.

Offer coupons

One of the most common ways that chatbots are used is to offer coupons and discounts to customers. This can help you increase sales and get new customers as well as keep your current ones happy.

Assign requests to the support team

Another great way for chatbots to be useful is to assign requests that come in through chat to the appropriate department in your company. If a customer wants help with an issue, they can ask the chatbot who will then ask them some questions about their issue so that it can be passed on to the correct department, who will then contact them directly with further information or instructions on how to proceed.

Do quizzes and contests with customers

Chatbots can also be used for fun things like quizzes or contests where customers need to answer questions correctly in order to win prizes such as cash or gift cards. This type of thing helps bring more people into your business by creating an enjoyable experience for them while also getting them excited.

Chatbots best practices

Just because chatbots are convenient doesn’t mean they’re easy to set up. You’ll need to consider how you want your chatbot to work and what kind of data you’ll need to give it the best answers possible. Here are some tips for getting started:

• Know what kind of bot you want (and why)
• Determine your goals for implementing chatbot technology into your business
• Consider how much time you want to spend managing a chatbot vs doing other things like customer service or product development
• Use a conversational tone
• Use simple language and be concise
• Give them personality but keep it professional
• Provide useful information rather than selling something
• Make sure they link back to your website

Things not to do with your chatbot

Here are some of the poor practices you should not do:

Don’t ignore the basics of good design. A well-designed chatbot will be easier for your customers to interact with and will help them achieve their goals faster. If it doesn’t look like a human would talk, then it’s probably not going to feel like a human is talking either.

Don’t use too many buttons or menus. If you need more than three actions for a transaction, then you probably need more than one button on your chatbot.

Don’t make the bot too complex.

It’s tempting to make the bot as intelligent as possible and have it answer nearly any question, but this could lead to a frustrating experience for your customers and hurt your brand. The goal of a chatbot is to get customers in and out as quickly as possible. If they can’t find what they need or figure out how to use your chatbot, they will be frustrated and leave without engaging with your brand.

Don’t expect people to know what “normal” behavior is for a chatbot.

Even if you invest time and money into creating an advanced chatbot that can handle any question thrown at it, don’t expect people to know how to interact with it. A human-like interface may sound cool, but it can also lead to annoying mistakes like asking questions that are too specific or saying something inappropriate because it doesn’t understand context or tone of voice well enough yet (yet).

Wrapping Up

Chatbots are one of the hottest trends in software technology right now, and they’ve got a lot of potential to revolutionize business communication. The most obvious promise is to reduce the amount of calls you have to field and your time spent managing customer relationships—essential for any growing business. But they can also help you attract new customers, provide services better tailored towards individual needs, and even anticipate what you customers need before they know it!

If you are a business owner, thinking about what kind of marketing strategies can help you with this and boost your ROI then opting for chatbot technology is a smart choice. First, understand the working mechanism of a bot, and after that pick a right bot development company like Digital Vidya which has rich experience in building chatbot and cognitive services.

Have you heard of Augmented reality? If yes, then did you know that online businesses are refining it as a means of marketing their products and services and getting an edge on their competitors?

For many of us digital marketing means a bunch of keywords, analytics and ads. We don’t often hear about applications that can show our customers, who aren’t in the market right now, things they actually want to buy and them try and get more information about them until the advent of AR.

The pace at which Augmented Reality (AR) is moving the technological world is incredible. Businesses are embracing the technology and incorporating it into their marketing activities, and they are now aware of this market opportunity, especially technology giants like Apple, Google, and Facebook. They are making huge investments in AR industry.

Augmented reality is the future of marketing. Find out why AR is going to the next level, when and how can businesses use it in this article.

Table Of Contents

What is Augmented reality?

How does it work?

Augmented reality vs Virtual reality

The goals from using AR as a marketing strategy

The benefits of augmented reality

Types of augmented reality

How businesses in different sectors are using augmented reality?

Augmented reality use cases

Conclusion

What is augmented reality?

Augmented reality is a live view of a physical, real-world environment whose elements are augmented by computer-generated sensory input such as sound, video and graphics. It’s a technology that layers computer-generated enhancements on top of a user’s view of the real world.

Augmented reality is related to two emerging technologies: mixed reality and computer vision. Mixed reality takes place within a real-world environment that combines both virtual elements and real world elements, while computer vision refers to the ability for computers to understand what is happening in the real world through cameras or other sensors.

Automated reality marketing is the use of augmented reality in marketing. It allows brands to create interactive experiences that engage customers and allow them to be part of the brand experience. And it enhances the consumer experience by providing an interactive and engaging experience with products.

Businesses can use augmented reality to create an interactive marketing campaign that builds brand awareness and drives sales.

How does it work?

With AR, companies can place products in real-world environments and allow consumers to see how products would look in their homes or offices.

AR is used in smartphones and tablets. Many apps use AR to help users navigate their way around a city or other location. For example, an app may display an arrow on the screen showing you where to go to find the nearest coffee shop when you’re lost in town. This type of app uses GPS technology to locate your position and then overlaps it onto the camera feed from your phone or tablet.

Augmented reality apps or web based experiences can also be used for entertainment purposes such as gaming, virtual tours and even 3D printing. Some apps are designed specifically for children so they can learn about science and geography while having fun at home or on vacation.

Augmented reality vs Virtual reality

Augmented reality adds digital elements onto something in the real world — think Pokémon Go or Snapchat filters. What makes AR unique is that these digital elements interact with and respond to their surroundings in real time. For example, if the user looks down at their hand in an AR app, they might see a ghostly dragon hovering over their fingers without actually being there. Or if they look up at a tree in an AR app, they could see a swarm of bees flying around its branches without actually being there either.

The goal of AR is to enhance our experiences by adding more information and context through technology so we’re not just seeing what’s in front of us but also learning more about it.

Augmented reality goes beyond virtual reality (VR) by allowing the user to interact with elements in the environment. In this way, AR can be used for gaming, education, entertainment, and more.

VR, is similar to augmented reality in that it’s an immersive experience. But with VR, you’re completely surrounded by digital content and unable to see the physical world at all.

Virtual reality involves immersing users in a totally artificial environment, such as an entire world or universe. It replaces or blocks out real-world stimuli to create an entirely new sensory experience for users.

The goals from using AR as a marketing strategy

You can use AR to create a more immersive environment for consumers by integrating virtual elements into the real world. This could include using an app to display a 3D model of a product so that customers can see what it would look like in their home or office. It could also include using AR on a mobile device such as an iPad to give consumers information about products on shelves in stores.

Or to create new ways for customers to interact with brands by letting them play games or use their devices in new ways. For example, you might use your phone camera and GPS location data to let people virtually try out different cars before they buy one. Or you might use augmented reality to let people view what they would look like wearing clothes from your store before they buy anything.

In addition to these AR can be used for a variety of purposes, including:

• Showing what something looks like before you buy it
• Providing a unique way to interact with customers
• Enhancing customer engagement by putting products right in front of them
• Connecting with customers through storytelling and brand experiences
• Creating awareness for new products and services
• Educating consumers about product features or benefits
• Improving customer service by providing information at point of sale or on social media

The benefits of augmented reality

Increased engagement with customers

The ability to see virtual objects superimposed over real-world environments makes it easy for users to interact with products or services in ways they couldn’t before. For example, an ecommerce store could place a product on top of a customer’s desk at work so they can try it out before deciding whether or not to purchase it.

Improved customer experiences.

Augmented reality can provide an interactive experience for customers who want to learn more about a product or service before purchasing it. For example, if you sell furniture, you could use augmented reality to show customers what their living room would look like with a new sofa, coffee table or chair. This can help them make a better buying decision and also save you money on returns if the customer isn’t happy with their purchase.

Increased sales and conversions.

Augmented reality makes it easier for customers to buy from your business because they’re able to see how products look in their homes before making a purchase. Therefore, you’re likely to see increased sales and conversions if you use augmented reality applications on your website or mobile app.

Hyper personalized experience

The ability to customize products to meet a customer’s needs is one of the most powerful benefits of AR for businesses. Customers are able to see what they look like with different products on their bodies, which helps them decide what they want to purchase. This makes the shopping process more enjoyable and easier for the customer, since they can visualize how something will fit before purchasing it.

Add originality

AR allows you to create unique pieces of content that will catch people’s attention and make them interested in your company or product line. You can also incorporate games into your marketing strategy, which will help keep your customers engaged over time and increase brand loyalty.

Brand promotion

If you want to promote your brand or product through augmented reality, there are several ways you can do so without breaking the bank. For example, by creating unique experiences that encourage customers to share photos or videos online using social media platforms like Facebook and Instagram, you can build awareness about your brand while encouraging people to engage with it more than ever before.

It’s affordable

Augmented reality apps are relatively affordable compared to other forms of digital marketing, like video ads or social media campaigns. You can create an app with a simple DIY kit or hire someone to do it for you — either way, it’s much cheaper than creating a TV commercial or print ad campaign.

It’s interactive

As your customers move around your store or business, they’ll be able to see different elements of your brand at every angle — which creates a more memorable experience for them than traditional advertising does.

It’s shareable

Augmented reality apps allow users to take pictures of themselves using your product or hanging out in your store, then share those images on social media platforms like Facebook and Instagram. This means that people who wouldn’t normally be interested in what you have to offer may end up seeing it anyway because their friends shared something cool they found while visiting your store!

Types of augmented reality

1.Marker based

This type lets you superimpose digital information on top of real world objects. The marker can be placed on any surface, in the real world or in virtual reality. The marker uses some kind of technology to communicate with your device and enables it to track its position in space. This allows for more accurate positioning of virtual content over real world objects.

A 2D marker, such as a QR code, barcode, poster, or watermark, is used in marker-based AR. The AR experience begins when the user scans a device at one of these markers.

It is different from markerless augmented reality which uses only computer vision algorithms to identify real-world objects and then superimpose virtual content on top of them without using any external markers.

2. Markerless AR

Markerless Augmented Reality is a technology that allows you to place virtual objects in the real world without any using marker, it uses camera image as a reference point for detection of the real world objects in the camera view.

The idea behind markerless AR is to make it easier for people to use augmented reality without having to buy new hardware or software. It also allows developers to create apps that work on any device with a camera, so users don’t have to worry about purchasing expensive hardware in order to try out AR experiences.

There are four types of markerless augmented reality :

Projection-based AR

Projection-based augmented reality is a subset of augmented reality that uses projected or displayed images to augment a user’s view of their environment.

Projection-based AR systems use projectors or screens to display computer generated imagery on top of real objects in front of you. This allows you to see both the real world and the virtual world at once without having to wear any special equipment or glasses.

Location-based AR

Location based augmented reality is a technology that uses the GPS and camera of a mobile device to display information about your surroundings. Here the digital information is triggered by a user’s location since it uses real world location data. This can include landmarks, points of interest, and even products.

Location-based AR can be used in many ways:

To provide users with relevant information about their surroundings, such as local businesses, nearby tourist attractions etc.

To analyzes data about a person’s location and behavior to deliver targeted ads based on what they see in their environment. For instance, if someone walks past a restaurant or coffee shop, an automated ad could appear on their phone screen recommending that they try one of those businesses’ products sometime soon.

To deliver marketing messages based on the user’s location.

Superimposition

Superimposition augmented reality is a type of augmented reality that allows users to superimpose virtual objects over real-life scenes without obscuring them from view.

In superimposition augmented reality, users see the real world through their smartphone camera while simultaneously viewing the virtual object on top of it. This allows them to interact with both elements at once — they can talk to an avatar sitting on their desk while still seeing their surroundings clearly.

Outlining AR

This type of AR uses the real world as its canvas, but doesn’t use any markers or other physical objects to track your position and orientation in space. Instead, outlining augmented reality uses computer vision algorithms to detect and track features in the environment such as planes, corners and edges by comparing them with images stored in its database or learned from prior training data.

This method is commonly used for mobile apps because it requires no special hardware and can run on low-end devices with limited processing power. However, outlining AR has some limitations such as being less precise than marker-based tracking and not working well indoors where there are fewer distinct features available to track.

When you have created an outline, you can then use it in different ways such as drawing on top of them or interacting with them by placing virtual objects inside the outline. You could also use it as a template for creating new drawings or projects using other software programs such as Adobe Illustrator or Photoshop.

Augmented reality is a technology that can be used to overlay digital information on the real world.

When it comes to the way you get the AR experience there are many different types of augmented reality:

Augmented reality games: This type of AR game overlays graphics and sounds on a real-world setting. It uses the camera and GPS to track your location and movements, and then displays these graphics in real time.

Augmented reality apps: These apps use your smartphone’s camera to overlay digital information on top of your phone screen, so you can interact with it as if it were right there in front of you.

Augmented reality glasses: These devices use cameras and sensors to overlay graphics onto the physical world around you in real time, via an optical display that sits directly in front of your eyes.

Web-based Augmented Reality: it’s a relatively new technology that doesn’t depend on a smartphone apps or glasses to work. The user just needs the native camera and a web browser to access AR experiences. One of the key factors contributing to the rapid rise in popularity of WebAR is this seamless user experience.

How businesses in different sectors are using augmented reality?

Businesses have been slow to adopt augmented reality, but that’s changing.

According to a recent report from market intelligence firm IDC, the worldwide enterprise augmented reality (AR) market will grow from $2.9 billion in 2020 to $26.1 billion in 2025.

Augmented reality is already being used by businesses in a variety of sectors. Here are some examples:

Retail

Retailers have been using augmented reality for years now, but recent advancements in mobile technology have allowed for more sophisticated uses of this technology. For instance, retailers can now use AR to give customers access to exclusive discounts or offers when they scan items with their smartphones or tablets. These discounts can be accessed through an app or website that retailers have created just for this purpose.

It also used to showcase product with virtual Try-on,  H&M was one of the first companies to implement virtual try-on technology into its stores back in 2013. Customers can scan any garment they like in order to view how it would look on them before they purchase it online or offline through augmented reality apps such as H&M Kitchen or Virtual Fitting Room by Shopify Plus. This helps them make an informed decision before buying anything online or offline through AR apps such as H&M Kitchen or Virtual Fitting Room by Shopify Plus. This helps them make an informed decision before buying anything.

Another way that augmented reality is being used in retail settings is by providing customers with additional information about products they’re interested in buying. For example, if someone scans a book cover using their phone’s camera or tablet’s camera, they’ll see reviews written by other users or information about where they can buy the product at a lower price elsewhere on the internet (eBay or Amazon).

Education

Education is one of the most important sectors in any economy. It can be said that education is a basic human right, but it is also true that not all children have access to quality education.

This makes it even more important for educators and businesses in this sector to keep up with the latest technology trends so they can provide students with the best education possible.

AR applications are becoming even more sophisticated, with some enabling students to interact directly with real-world objects and environments in order to learn more about them. For example, they could use AR glasses or headsets to see how an animal would appear in 3D or use virtual gloves to get up close and personal with an unfamiliar object.

For example, if students are studying geography, they can use an AR app that shows them pictures of different landscapes and shows them what they would look like if they were standing in that landscape at a particular time of year.

In the classroom, AR can be used to provide students with useful information about their surroundings — such as historical facts, the names of buildings and other landmarks. It can also be used to create interactive lessons or presentations, allowing teachers to demonstrate concepts like gravity by dropping virtual objects onto a table surface.

Real Estate

The real estate industry is an old one, and it’s been slow to adopt new technologies. But augmented reality (AR) has started to catch on, as brokers are finding that it can help them sell homes faster and for more money.

Here’s how AR is used in real estate:

Virtual tours. This is the most obvious way that AR has entered the housing market. The seller creates a virtual tour of their home using a smartphone app or desktop software, then uploads it to a website like Zillow or Trulia for potential buyers to view online.

Interactive listings. Another type of digital listing uses augmented reality to show off features of the home that aren’t visible in photos or videos. For example, if there’s a pool or Jacuzzi in the back yard, you could use an app on your phone or tablet to show prospective buyers what they look like when they’re turned on — complete with water splashing around and bubbles flying through the air!

“Walk-through” apps. Some apps let you walk through a virtual version of the house as though you were actually there — complete with sounds and other sensory effects such as temperature changes as you go from room to room.

Touring

Tourism marketing has always relied on immersive experiences to attract visitors and boost visitor numbers. With augmented reality, tour operators can create new ways for tourists to experience their destinations without leaving home.

For example, if you visit Paris you could use an AR app to view famous landmarks from your hotel room or from any point in the city. You can also see information about these places overlaid on top of them so that you can learn more about each location before visiting it in person.

Tourists can use it to enhance their visit to an attraction. For example, an AR app could be used by people visiting a museum to learn more about artifacts on display, such as by tapping on them to bring up information about them or giving them access to audio guides provided by curators at the museum.

Visitors can use AR as part of their experience when visiting museums or exhibitions through games or quizzes that are available through their mobile phones or tablets. This helps visitors engage with exhibits more easily than just reading about them in books or viewing them on screen only.

It also used in ticketing :the ability to use your mobile device for ticketing is perhaps the most obvious application for augmented reality in touring. The digital environment can be used to add value to the ticket by providing additional information such as maps or transportation details.

Construction

Augmented reality is using technology to enhance, or add to, the way people perceive their environment. In construction, it can be used to showcase a product or service and provide customers with a better understanding of how they work.

It’s also useful for training, as it can help trainees learn new skills in an environment that’s easier than real life — without having to worry about mistakes or injuries.

Here are some ways augmented reality is used in the construction sector:

Marketing: Augmented reality can be used in marketing campaigns to show how products or services look when installed at home. If a company wants to promote its solar panels, for example, they could create an app that shows how much sunlight each panel receives on a sunny day and what it would look like on your roof. This gives potential customers a better idea of what they’ll get if they buy from this company instead of another one.

Training: Many companies use augmented reality in training programs to teach new employees how to do their jobs properly. For example, if a company wants its crane operators to learn how to operate cranes safely and efficiently, it can create an augmented reality app with instructions on how much weight each crane should be able to lift and where each rope should be tied down to it.

Food and hospitality

In the food and hospitality industry, AR is used to create more immersive dining experiences for customers. For example, some restaurants use AR to let customers make their own virtual menus or interact with food they’re considering ordering. In other cases, AR is used to help customers navigate restaurants that are crowded or unfamiliar.

The following are examples of how AR is being used in the food and hospitality industry:

Food ordering: Customers can place orders using mobile devices equipped with AR technology at some restaurants. The device displays an image of the menu on their screen; when they point it at a dish they want, the image becomes interactive and allows them to order it directly from their device without having to speak with a waiter or waitress.

Menu translations — When you’re visiting a new country, it can be difficult to decipher menus. This problem is solved by using AR to translate menu items into your native language so you know exactly what you’re ordering.

Product information — AR has been used to provide additional product information about items on sale at restaurants and stores. This could include nutritional information, ingredients or cooking instructions for preparing a dish at home.

Menu design. Menu design has always been an important part of the dining experience, but with AR, menus can be customized to each customer’s needs. For example, if you’re allergic to dairy products, an app can create a menu that shows you only vegetarian options and hides those that contain dairy products. This makes it easier for customers with food allergies to find what they need without having to ask their server every time they order something new.

Augmented reality use cases

Business cards with 3D models of products or services

Customers can scan business cards with their phones and get more information about the company, including a video of the product being made or service being offered. This is particularly useful if you have products that might be difficult for customers to see in person, such as clothing or jewelry.

Art and exhibition

To enhance an artist’s work by adding more information about it or creating an interactive experience for visitors through an app or website. For example, museums could use AR apps to give people more information about the exhibits they’re looking at (either while they’re visiting or at home). Artists could also use AR apps to give people more insight into how their artworks were made (for instance, by displaying videos showing how they created them).

The Museum of Modern Art (MoMA) in New York City created an app called MoMA Studio that lets people explore the museum’s collection using augmented reality technology. It includes videos, audio tours and even interactive games for children visiting the museum with their parents. And if you’ve ever wondered what Pablo Picasso would look like as an anime character, then this app might be for you!

Repair and Maintenance

Visual inspection of equipment – AR can be used to view a visual representation of the equipment being inspected. This allows for easier identification of issues, such as worn-down parts or broken wires.

Location tracking – AR can be used to track the location of tools and equipment. This allows workers to easily find what they need without having to dig through a toolbox or search an entire work area.

Training – Rather than having employees read manuals or watch videos, AR can provide step-by-step instructions on how to perform tasks correctly and safely, which reduces the risk of injury or error during training sessions.

Product demonstrations

A great way to show how a product works to potential buyers is through a virtual demonstration. It’s much easier for someone to understand how something will work if they see it rather than just read about it.

Customer service

When a customer has questions about your products or services, you can use AR to help them find answers before they buy anything. For example, if they need help choosing between two products, an AR app could show them what each one looks like and what features each one has so they can make an informed decision on which one fits their needs best.

Gamification

Gamification is the application of game principles and mechanics in non-game contexts to engage users and solve problems. It uses game design elements such as competition, rewards, rules, and collaborative play to encourage engagement with any type of content or system.

The use of Augmented Reality in Gamification:

Augmented reality offers companies new ways to engage employees, customers and other stakeholders. It can provide immersive experiences that allow people to see or interact with virtual objects in the real world around them (an example being seeing virtual pets on your desk at work). This type of engagement helps to increase user interaction with your brand or product by immersing them into an environment where they feel like they’re part of it all too.

Conclusion

The use of AR in digital marketing is growing rapidly now. AR ads have become a better medium because it gives users more engaging experience while they find out more information or any other things they want to know about the products and services. Through the creation of unique and engaging experience, AR ads may prove to be very helpful in attracting user when they do shopping but instead of reading boring post, they can experience it through AR.

If you want to stand out in this competitive digital age, you’ve got to keep your app or website fresh and up-to-date with the newest features that offer added value. One of those features is augmented reality. When people are considering your product or service, they may have questions about it that an augmented reality app could answer. The more engaging your offering is, the better chance you have at making a sale.

As a business owner or entrepreneur, you can use many digital marketing strategies, such as social media marketing, email marketing, and content marketing, to get exposure and grow your business . You may run some campaigns and spend money on them using these strategies without obtaining any sales or leads. It happens sometimes . Digital marketing is a long-term investment, and as with any investment, there will be wins and losses, but ultimately you will get a return on your investment.

But what if there is a digital marketing strategy where you can get influencers, bloggers, and vloggers to promote your products or services and you do not pay them until you get real results like sales, followers, or leads? That will be awesome, yah?

Actually , there is such a strategy , and it is called affiliate marketing. I will cover every aspect of affiliate marketing in this post , including what it is, its types, advantages and disadvantages, and how to choose the best strategy and best affiliate.

Table Of Contents

Table Of Contents

What is affiliate marketing?

The main parts of the affiliate marketing system

Types of affiliate marketing

Affiliate marketing promotion techniques

The advantages of affiliate marketing

Affiliate marketing disadvantages

Affiliate network vs affiliate program: Which is better to use?

How do you find the right affiliate for your business?

Conclusion

What is affiliate marketing?

Affiliate marketing is a process where businesses recruit influencers, bloggers, vloggers, podcasters, or other businesses to promote their products or services and pay them only when they drive sales, generate leads, or drive traffic to their websites.

You can pay the affiliate per sales, leads, clicks, or app installation.

In affiliate marketing, each affiliate is given a special link from which clicks can be tracked , usually with the help of cookies. The user is then tracked by the cookie to see if he made a purchase. If he does so within a specified time, then the business owner should pay the affiliate a percentage as a commission.

Each cookie has a length, or “cookie life”, which defines how long the cookie will track the user’s online activity.

The main parts of the affiliate marketing system

Any affiliate marketing system should comprise these parts:

The Merchant

Also known as the seller, vendor, advertiser, retailer, and creator, the merchant can be a big company, an entrepreneur, or business owner that has a product or service and recruits affiliates to promote it.

The Affiliate

Also known as the publisher, this is the party who does the marketing, promotes, and attracts potential customers to buy the merchant’s products The affiliate can be one individual, a company, or an entire site dedicated to finding products related to a certain topic and promoting them.

The consumer

He is the potential customer or target audience for affiliate marketing to attract him and convince him to make a purchase.

Consumers need to know they are part of an affiliate marketing system. Usually, publishers use a short disclaimer like “If you purchase items on this site, I may earn a small.

The Network

An affiliate network is a platform that works as an intermediary between merchants and affiliates. A merchant uses the affiliate network to find a good affiliate (publisher) who can promote his products or services, and the affiliate uses the network to choose the products he wants to promote.

An example of a network is the Amazon affiliate program, where the merchants add their products and the affiliate chooses from them and promotes them in their own way.

Some businesses may not use an affiliate network; they may work directly with publishers or run their own affiliate program because the affiliate network has some shortcomings that I will talk about in the next few sections.

Types of affiliate marketing

Affiliate marketing allows anyone to promote any product or service; some affiliates may have experience in the industry and do niche content to build relationships with people who are interested, while others may have none; As a result, affiliate marketing has been classified into the following types:

Unattached

The unattached affiliate has no experience in the industry and has no followers or connections with the products he is promoting. He may just run pay per click or any type of ad to promote the products and earn money.

Related

This type of affiliate has followers and experience in the industry. He creates niche content to attract interested people and build authority and relationships with them. He has the ability to influence them and convince them to buy your product. They are very selective because they don’t want to recommend a bad product or service to their followers and lose them.

Involved

An involved affiliate is closely tied to the product. He has tried the product, trusted it, and become sure that it will suit his followers and give them a good experience. Then he will promote it and recommend it to them.

Hiring this affiliate may cost you more money than the other types, but it is worth investing in.

Affiliate marketing promotion techniques

Affiliates can market a company’s products or services in a number of ways, and you only pay them if their strategies are successful and result in any form of benefit for you. Here are a few examples :

Influencer marketing

Here you get influencers to promote your products or services to their audience on Instagram , YouTube, or other channels. The influencer may make videos about your products, put them in his story, mention your brand, and include links back to your website.

Blogging

Most bloggers use affiliate marketing to monetize their blogs. Business owners look for niche blogs that specialize in topics related to their industry, and the traffic they receive is the business’s target audience. The blogger can write posts with affiliate links or banners for your products, or he can write reviews or product comparisons.

Search affiliates

In this case, the affiliate uses his own money to promote your products in search results or to use an advertising technique to drive traffic to your website, such as pay-per-click ads or social media ads.

MicroSites

Microsites are separated from the main site. They can be a single landing page or a collection of pages with their own domain or sub-domain. Here, affiliates put your products on these sites and do their own marketing efforts, whether it is a PPC or email campaign or social media to attract people to visit these sites and make a purchase.

Email marketing

Affiliates who have an email list may include links to your products or services in their newsletters, or they may run dedicated email campaigns promoting your brand for their list.

Advantages of affiliate marketing

It’s a good way to boost your brand awareness and generate word of mouth

with affiliate marketing you will get influencers, bloggers, vloggers, and podcasters to talk about your business and your products and recommend them to their followers. This will make your brand reach out to more people, which will increase your brand awareness and generate more word of mouth. 

It allows you to market your products with less money and less effort.

Because most affiliates have some kind of marketing experience, affiliate marketing is a very effective strategy, especially for startups who don’t have a large marketing budget, a dedicated marketing team, or the time or experience to market their products or services. You only need to pay them a percentage of the profits from sales in exchange for them marketing your goods, bringing you consumers, and making all other necessary efforts.

Enhance social proof

Consumers nowadays are more informed and have higher expectations than ever before. They heavily rely on brand reputation and social proof. It has been found that nearly 95% of shoppers examine online reviews before making a purchasing decision. When you work with genuine affiliates who have put in the effort and produced valuable content to gain the trust of their audience, they will pass some of this trust to your business and provide more social proof for your products because their audience knows that this influencer will always give them the best.

You never lose money if you haven’t generated sales

Affiliate marketing is a performance-based model of marketing built for profitability. Unlike other marketing strategies, you are not paying for potential buyers through impressions or clicks, you only pay for closed sales.

Affiliate marketing disadvantages

Although affiliate marketing is an effective marketing strategy , you should be aware of some of its drawbacks. One of these drawbacks is that you may not have control over the message that can be spread about your brand, so be careful not to choose an affiliate who will poorly represent your brand , because some affiliates just want to make money and don’t care too much about sharing your brand’s values and messages.

Additionally, they can send you traffic from unreliable sources, which would provide you with unreliable leads.

Affiliate network vs affiliate program which is better to use

When you first start affiliate marketing, you may get confused about whether to join an established affiliate network or create your own affiliate program. Let’s make a comparison of them and then decide which one is better.

In an affiliate marketing network, you will find a ready database that contains many influencers, bloggers, and other marketers. You just need to choose the best one for you and reach out to them and get them to promote your products.

Affiliate networks provide an easy way to find potential affiliates and manage your relationship with them. These networks take care of much of the administrative overhead associated with running an affiliate program, so you can concentrate on building relationships with your affiliates and generating revenue.

If you’re just getting started in affiliate marketing, it’s best to use an affiliate network instead of setting up your own affiliate program

On the other hand, with affiliate programs, you need to establish your own platform, then search for marketers and ask them to join your program. That means you need to establish your own network.

Now you may say, “I will use an affiliate network. Why should I establish my own and search for marketers to join it? Wait a minute!

What will make you choose to establish your own program is the affiliate network’s high costs. Almost all affiliate marketing networks have sign-up fees that start at $500 and can go up to $3000.These fees are just to have an account on the network. Then you should pay the affiliate commission, which ranges from 15% to 50%. In addition to that, you should pay 1 to 2% of the commission to the network. Other than that, you should pay monthly fees for the network. Even if you didn’t get sales, you will need to subtract these fees from your overall profit.

For some businesses, this is too many fees. Add to that, with affiliate networks, you don’t have control over the data. That’s why some businesses prefer to run their own affiliate program because it costs less than joining an affiliate network.

There is another option to do affiliate marketing, which is to search for influencers, bloggers, or any marketer and ask them to promote your products while you give them a percentage as a commission per every sale, or develop a partnership with other

Businesses that have audience similar to your target audience can cross promote your products and services and get mutual benefit. This will be the choice for you if affiliate networks don’t suit you and you don’t want to run your own program.

How to find the right affiliate for your business?

The first step is to find an affiliate on the right channel for your audience, whether it’s social media, blogs, or forums. It is critical to reach your audience where they are, and to ensure that the affiliate has a large enough audience that matches your target audience. Also, make sure that they are authentic and provide valuable content that builds trust with their audience. And lastly, make sure they are great storytellers who will draw customers in and persuade them to buy.

Conclusion

As an entrepreneur, the risk of using affiliate marketing is extremely low, and the reward is high. You only need to pay affiliates when a customer converts, not when they drive people to your website, but make sure to choose the right affiliate network that has reasonable fees and reasonable commissions to get a good profit margin and good ROI.

Steer clear of networks that ask you to pay 30–50% commission plus monthly fees and sign-up fees. I think Hupspot has some kind of good affiliate network with a 15% commission. You can start with it or you can choose the other options, which are to start your own affiliate program, partner up with other businesses, or reach out to the influencers on their own channel and ask them to promote your products or services for a good commission. 

AI is more than a buzzword; it’s an actual technology that can be used to make businesses better. Businesses from all sectors are increasingly leveraging AI (Artificial intelligence) as a way not only of improving the efficiency but  enhancing customer experience and keeping the competitive edge against their rivals. Perhaps because of the potential value and current hype around AI usage in marketing, everyone is using this term freely and with many different interpretations.

Companies have already started implementing AI, and some of them have already made huge strides in improving their operations for customers. AI is cheaper and more efficient than human beings, so AI tools will be a must-have for businesses that want to stay in the competition.

Almost every business whether its big or small is starting to leverage AI , The good news is that you are not too late to engage in this powerful technology. this article will help you to understand why AI is very important for your business strategies and how you leverage it in your marketing strategy.

Table Of Content

What is artificial intelligence?

How AI is changing the digital marketing industry?

The benefits of AI for digital marketing

Applications of AI in digital marketing

What Is Artificial Intelligence?

Artificial intelligence is a technology that allows machines to perform tasks that normally require human intelligence. It refers to machines that can think, learn, and act like humans. AI is a subset of computer science that deals with intelligent behavior in computers. In other words, AI is the field of creating machines that can sense their environment and interpret data to make decisions. In marketing, artificial intelligence can be used to make smarter decisions and provide a better experience for customers.

AI has been around for decades, but it has only recently become popular in the consumer space. The rise of AI-powered assistants like Siri and Alexa has made people more aware of its potential usefulness in their lives.

Artificial intelligence isn’t just about machines doing things that humans already do. Rather, it’s a technology that will allow us to do things we’ve never been able to do before — like solve problems that were previously unsolvable or predict outcomes that were previously unpredictable.

How AI is changing the digital marketing industry

Artificial intelligence (AI) is revolutionizing the digital marketing industry by automating many of the tasks performed by marketers. AI systems help businesses make better decisions, improve customer satisfaction and increase revenue.

There are many ways in which AI can be used to improve the performance of your business. Here are some examples:

It gives you more specified and detailed targeting

How AI is giving you more specified targeting than traditional targeting options.

Advertisers have been using user-based targeting for a long time. The concept of targeting users who have previously visited your website or app is pretty simple. However, there are some limitations to this approach.

User-based targeting can only target people who have already interacted with your brand or product in some way. If you’re looking to reach new users or people who haven’t engaged with you yet, then user-based targeting is not going to be very effective.

This is where artificial intelligence comes in. With AI, we can start to identify and categorize users based on their behavior rather than just their previous interactions with us. This allows us to target people based on their intent—basically, what they want and how they behave when they’re actively trying to get it.

Targeting through the use of AI is becoming a very popular option for marketers and advertisers. The reason for this is that it offers a lot more detail than traditional targeting methods. It can also provide highly specific data to help you target your audience based on their needs, wants and behaviors.

Targeting with AI allows you to make more informed decisions about who will be interested in your product or service. This means that you can save a lot of money by only targeting those people who are likely to buy your product or service, instead of wasting money on those who won’t be interested in what you have to offer them.

How does this work?

AI uses algorithms that analyze large amounts of data in order to make predictions about future behavior, which allows marketers and advertisers to choose their target market based on what they know about each person’s habits and preferences. By analyzing millions of different factors at once, all at once and then making predictions about what might happen next, AI is able to help companies narrow down their focus when it comes to advertising campaigns or marketing efforts.

Gives you more understanding of your customers

What does it mean to understand your customer? It’s not just about knowing the things they like or dislike. It’s about understanding why they do what they do, what motivates them, and how they make decisions.

In today’s digital world, companies are collecting unprecedented amounts of data on their customers that can be used to create a deep understanding of who they are and what makes them tick.

The problem is that this data is often unstructured, so it’s difficult for businesses to make sense of it all. This is where artificial intelligence (AI) comes in.

With AI, businesses can use machine learning algorithms to automatically analyze all their customer data and create meaningful insights that help them understand their customers better than ever before .

It enables small businesses to compete with the big enterprises by using the advanced marketing strategies like they weren’t able before

When we think of artificial intelligence, what usually comes to mind are the big tech companies like Google, Facebook and IBM. But AI is also being used by small businesses to compete with the big players.

As a small business owner, you’re probably trying to find ways to grow your business without spending too much money on new technology. But that doesn’t mean you can’t use AI.

Artificial intelligence (AI) can be a powerful tool for small businesses, as it is for large enterprises. The technology has been used by major companies like Amazon and Google for years, but AI is now being made available to smaller businesses through cloud-based AI service.

Cloud-based AI services offer smaller companies access to the same technologies that larger companies use to drive their business decisions. This can enable small businesses to gain insights into their customers’ needs and preferences that they wouldn’t have been able to gather without access to these technologies.

As a small business owner, you know that competition is tough. Businesses in your industry have been around for decades, and they have deep pockets to fund the latest technology.

But it’s not impossible for small businesses to compete with larger enterprises in the advanced marketing strategies. You just need to know how to use AI.

Improve the CRM efficiency

CRM stands for customer relationship management  and refers to software or processes that allow companies to manage their interactions with customers. The goal of CRM is to help companies collect data, analyze it, and use it to better understand their customers and market their products accordingly.

There are two main ways that AI can be used in CRM: predictive analytics and automation. Predictive analytics is when an algorithm uses historical data points to predict what might happen next — like the likelihood that one of your customers will churn or become a repeat buyer. Automation is when an algorithm takes over manual tasks so you’re free up time for other things — like automatically sending out follow-up emails based on customer activity patterns in your database.

It changes the way we use data

One of the biggest changes to come from AI is the way that marketers and businesses use data. The rise of artificial intelligence and machine learning is changing how we interact with our customers and prospects. It’s also changing how we collect and analyze data, which can make our marketing efforts more effective than ever before.

All businesses are always looking for new ways to enhance the customer experience, but with so much noise out there, it can be difficult to know where to start. That’s where AI comes in.

With AI, you can make more informed decisions about what content you create and how you market it You can also use this data to improve your website, app or other digital properties.

It’s important to note that AI isn’t a silver bullet. It’s just one tool in your marketing arsenal, but it has the potential to make your life easier by automating some of the more tedious tasks associated with marketing.

The benefits of AI for digital marketing

In fact, we’re already seeing how AI is being used to create better user experiences, improve the efficiency of marketing campaigns and reduce costs.

So what are the benefits of AI for digital marketing? And why should you use it?

Improve targeting and personalization

Targeting:

AI can help marketers better target their messages. Marketers no longer need to rely on demographic data alone — they can now use artificial intelligence to identify the right audience for their message. This leads to more relevant messaging and less wasted spend on the wrong audience.

Personalization:

Marketers can use artificial intelligence to personalize marketing messages by identifying points where customers are most likely to respond. For example, if you’re sending an email campaign about your new product line, you can use artificial intelligence to determine when customers are most likely to open your email based on past behavior with similar campaigns or other data sets.

Inferring preferences from past behavior

AI can analyze past actions of customers and predict future actions based on affinity-based modeling. This means that if a customer has bought something once, it’s likely they will buy it again in the future. The same goes for other products or services that complement what they have purchased previously — if they liked one product from a certain brand, there’s a good chance they will like others from the same brand as well!

It improves your ROI

Artificial intelligence (AI) is a powerful tool for businesses. It can help with customer engagement and create new products and services. But how does it improve your return on investment (ROI)?

AI can increase customer satisfaction by providing a better experience. If a customer’s needs are met quickly and efficiently, they’re likely to stay loyal to your brand and make repeat purchases. This can lead to higher customer lifetime value (CLV) — the total value of all future purchases from that customer — which is great news for your ROI.

Let’s look at an example: You’re shopping online for a new pair of shoes and find one pair that you like in your size, but they’re not available in other colors or sizes. You decide to keep looking at other sites, but you keep coming back to this one because you’d really like those shoes.

If you were able to find what you were looking for on that site, you would have purchased them there instead of searching elsewhere — which could have led to other purchases from that site as well.

Another way AI improves ROI is by increasing sales revenue without increasing costs. AI can handle repetitive tasks like data entry or customer support requests automatically so employees don’t have to spend time on these activities.

Makes the automation of processes and workflows easier

Automation is one of the areas where AI has made a huge impact. When combined with other technologies like machine learning, automation can be used to make businesses more efficient and profitable. AI is also used to make business processes more efficient by allowing them to run smoothly without any human intervention at all.

It allows you to do more tasks with fewer resources and helps you achieve your goals faster and more efficiently.

You probably already know that AI can make processes more efficient, but how exactly does that happen?

AI is able to automate many different kinds of tasks, Here are some ways that AI can help automate your workflow:

1. Automated data entry: AI can scan documents and convert them into data for easy entry into your system.

2.Automated reporting: AI allows for better reports than humans could ever provide because it’s able to analyze tons of data points at once and come up with conclusions based on those findings — which is something humans aren’t really good at doing manually.

Improves customer experience

The customer experience is one of the most important aspects of business. It’s also one of the hardest things to get right.

Artificial intelligence (AI) has been used in customer service for years, but it’s only recently that it has become more widely adopted and accepted by consumers. AI can help you deliver an amazing experience by anticipating your customers’ needs and helping them find what they want quickly and easily.

Here are three ways that AI can help drive better experiences for your customers:

1. Identifying customer needs.
2. Personalizing content and products recommendations.
3. Helping with service issues.

Applications of AI in digital marketing

Content creation

Content creation is a major part of any marketing strategy, but it can be time-consuming and expensive. One way to cut down on your workload and free up some time is to use AI content creation software.

Content curation involves finding relevant information on topics that interest your target audience, such as industry news or trends. AI can help you find more quality content than humans could ever find on their own.

AI is already making its way into the more creative aspects of content marketing, such as blog posts and landing pages.

While AI tools are capable of creating content that is as good as humans, they can’t do it with the same level of nuance and creativity. They also don’t understand that they’re getting paid to write, so they don’t know how to write for the audience, which is something that most humans do instinctively.

While AI is able to produce very impressive text, it won’t be replacing human writers any time soon. Human writers have their own unique skillset that can’t be replicated by a machine — for now, at least.

content and products recommendations

Recommendation engines are one of the most important tools to improve customer experience on e-commerce websites. They help retailers increase sales, reduce costs and improve customer satisfaction by offering personalized recommendations to shoppers.

Recommendation engines are used by more than 90% of consumers when shopping online. According to a survey conducted by Gartner, more than 60% of shoppers abandon their carts due to lack of recommendations or poor recommendations on product pages.

The main goal of a recommendation engine is to increase conversion rate by showing relevant products and content to customers. Recommendation systems use artificial intelligence algorithms that analyze customer behavior, preferences, past purchases and browsing history to offer relevant products and content for each customer.

Content-based algorithms use information about customers’ past behavior to decide which content they may like in the future.

Content recommendation is when a website recommends content based on what you have previously viewed or liked. For example, suppose you have viewed a lot of articles on coffee, and then you go to a coffee shop’s website. The website may suggest that you should try something new like tea.

Digital advertising and ads optimization

AI-driven advertising is an emerging category of digital marketing. It’s already being used by a few companies and is expected to become more widespread in the coming years.

In the world of advertising and marketing, AI can be used in many ways:

Ad targeting: AI can help advertisers reach their target audience more effectively by measuring data from multiple sources — including past purchases, browsing history and demographic information — to find the right people for their ads.

Ad optimization: AI can help marketers target specific customers with personalized messages based on their individual needs and interests. For example, if you’re planning an event where attendees will travel from across the country, the AI should be able to figure out which attendees are likely to need transportation services — such as rental cars or flights — so that you can target those individuals with relevant ads.

AI can also be used to improve the efficiency of ad campaigns, targeting, performance and measurement.

AI offers many benefits over traditional methods such as keyword optimization and A/B testing. Here are some examples of how businesses can benefit from using AI:

Create highly relevant messaging based on customer data.

Personalize ads based on customer preferences and buying behaviors.

Optimize bidding strategies for maximum impact without overspending on ads.

Make real-time decisions about what creative assets or messages should be shown when a user clicks on an ad or visits your website.

SEO

There are a number of ways that AI can be used in SEO. The most obvious use of artificial intelligence is the use of machine learning to help predict what people are looking for on the internet. This has been done by Google for years through their search algorithms, but now other companies are jumping into this market as well.

Some of the biggest players using it to improve their websites’ rankings. The most common uses are:

Content creation: AI can be used to create original content using machine learning algorithms. This helps companies create unique content that is tailored to their brands, rather than relying on templates.

Keyword research: Content creators can use AI-powered tools to find out which keywords are most likely to drive traffic to a website or blog post. They can then use those keywords as tags within their articles or blog posts, which will help them rank better for them through search engines like Google and Bing

Another way that AI can be used in SEO is through automated link building. This allows you to find websites that might be interested in linking to yours, finding their contact information and writing an outreach email without having to do all the hard work yourself!

Voice Search

Voice search is AI technology that allows you to use your voice to search for things on the web.

In digital marketing, voice search is used to find information about your business or product. It can also be used by potential customers to find out more about your competitors

Voice search is often referred to as “voice commerce” or “conversational commerce” because it allows you to buy products and services using just your voice. For example, if you have an Amazon Alexa-enabled device like an Echo, you can order products from Amazon without having to type anything into a screen.

Dynamic Pricing

Dynamic pricing refers to the use of algorithms to set prices in an efficient manner. This can help your business run smoothly and efficiently without any major hiccups or complications.

Artificial intelligence can be used in dynamic pricing in the following ways:

1. To provide a personalized experience for each customer
2. To offer a better deal for specific products or services
3. 3. To predict future behavior

But the technology that powers AI can also be used to make sure businesses are always charging customers the optimal price for their goods and services.

That’s where dynamic pricing comes in. Dynamic pricing is a pricing strategy that uses algorithms and other techniques to determine prices for products or services based on real-time data and customer behavior. The goal is to optimize profitability by setting prices at levels that consumers are willing to pay as often as possible.

The idea has been around since at least 2007, when Amazon released its first Prime Day promotion — which was then known as “Prime Day” — an annual event that offers exclusive discounts to Prime members only.

Since then, many companies have adopted dynamic pricing strategies in some form or another, including airlines like Southwest Airlines and hotels like Marriott Hotels & Resorts. But while these companies use AI to automate certain parts of their operations, they don’t do so in every aspect of their business models.

The research shows that the adoption rate of AI-driven pricing is increasing rapidly among businesses in the travel and hospitality industries.

Ai in dynamic pricing can help companies better understand customer preferences, anticipate demand and make better decisions to optimize revenue.

Visual Search

Visual search technology is a growing trend in the world of e-commerce. It allows users to search for products based on their visual characteristics.

Visual search can be helpful in many ways, including in identifying product duplicates, determining which products are similar to others, and providing inspiration for new designs. AI can play a big role in this process.

How AI can help with visual search technology:

AI can automate tasks such as identifying duplicates and similar items. This means that humans don’t need to spend hours sifting through thousands of images manually in order to identify duplicates or similar items. The human eye is great at recognizing patterns, but it’s not nearly as efficient as computers are at performing these kinds of tasks.

AI can also be used to help with other aspects of visual search technology such as filtering out irrelevant data from searches and providing recommendations based on what you’re looking for.

Improving image recognition by identifying patterns in images and comparing them against a database. The more data you have, the better your algorithms will be at recognizing objects.

Identifying objects in complex images, such as detecting what’s inside a box or bag.

Improving image classification by identifying different types of visual content(dress, pants, shoes).

Marketing Automation

Marketing automation tools can help you automate repetitive tasks, like sending email templates or scheduling social media posts. They also allow you to create automated workflows that are triggered by specific actions taken by customers on your website or within your app. But what if you could automate even more? What if your sales team could automatically schedule meetings and calls with prospective clients based on data they’ve entered into forms on your website? What if you could predict when customers might be ready to buy based on their browsing history?

That’s where artificial intelligence comes in. It can be used to analyze data from multiple sources — including customer service tickets, product reviews, social media comments, and surveys — and feed that information into a predictive algorithm that helps you make decisions about future interactions with prospects. This type of AI assistant would take over much of the tedious administrative work involved in running a business so that sales reps could focus.

Marketing automation platforms use AI to learn from past experiences and adapt accordingly. For example, if you send the same email to the same person several times and they never open it, the platform will learn that this person isn’t interested in this type of content and stop sending them similar emails in the future.

This kind of machine learning helps marketers save time by automatically doing tasks for them that would otherwise require human effort — such as analyzing data or finding new leads based on information already stored in databases.

Chatbots

The best AI chatbots are the ones that achieve a high level of conversational intelligence. They can understand and respond to the needs of their users, like a human would.

Chatbots are increasingly the preferred mode of communication for customers, and companies need to adapt if they want to stay competitive.

Artificial intelligence powered chatbot has the potential to help companies with their customer service needs in a number of ways:

1. It can improve efficiency by automating repetitive tasks such as data entry and document management.
2. It can make agents more productive by analyzing data and providing them with contextual information about their interactions with customers.
3. It can help reduce costs by reducing human error, eliminating the need for human resources, or both.

The most common use case for chatbot is to help customers find information they need through search. If a user asks a question like “Where is my order?”, the bot will be able to search its database for relevant information and provide an answer.

Another use case is to automate low-level tasks such as providing FAQs or helping users browse through products on your website. For example, if you have a product page with many different options for sizes, colors and other features, your bot could offer suggestions based on the user’s input, without requiring him/her to manually select each option one by one.

Using artificial intelligence in customer service chatbots also means that you can create more complex interactions between your bots and users — it’s no longer enough just to ask some simple questions and wait for an answer (which might not come). With Ai bots, you can build more human-like conversations that resemble real conversations between people.

Social Listening

Social listening is the process of monitoring what’s being said about your brand on social media. It’s important for companies to know what people are saying about them so they can respond accordingly. This can improve customer service and build company loyalty.

Artificial intelligence has been used for years in customer service but recently it’s been applied to social listening as well. Here are some ways AI is being used in social listening:

Personalized responses: If a customer tweets that they had a bad experience at your restaurant, an intelligent bot will reach out with an apology and offer them something free as compensation. This saves time for employees who would otherwise have had to handle this type of complaint themselves.

Automated content creation: Bots can analyze data from previous interactions with customers and create relevant content that they’re likely to share on their personal profiles or other platforms like Pinterest or LinkedIn. For example, if someone asks how many servings come in a box of cereal

, the bot could generate a response that includes an image of the product along with its nutritional information and price per serving.

With the use of natural language processing, which allows for easy identification of sentiment and emotion in posts, tweets and comments. The software identifies whether a post is positive or negative, and measures the strength of that sentiment. Another example is sentiment analysis – AI can determine whether a person is more likely to be happy about something or upset about it.

Another way AI can be used for social listening is through deep learning. This type of learning involves training an algorithm based on existing data and then letting it learn from new information as it comes in. This type of technology has been applied to many industries, including healthcare and marketing. For instance, if you want to sell more products online, you could use deep learning algorithms to show customers ads they’re more likely to click on based on their previous actions.

Customer Data Platform (CDP)

Customer data platform (CDP) is a software-as-a-service (SaaS) platform that allows you to create and collect customer data. It can also help you work with this data to gain insights about your customers and their behavior.

Customer data platforms are becoming increasingly popular because they’re relatively easy to use and cost effective. You can use them to manage your customer data, regardless of the size of your business or the number of customers you have.

Lead Scoring and Generation

In lead generation and lead scoring, AI can be used to help generate more accurate scores for leads based on their interactions with your company. This can include everything from the calls they make to their social media activity.

How does it work?

In its simplest form, AI uses machine learning algorithms to analyze data and make predictions about future outcomes based on past experience. For example, if you want to create a model that predicts whether a lead will respond positively or negatively to an offer, you can build an algorithm that analyzes data from previous offers made to similar leads and makes predictions about what will happen in the future based on that same data set.

Machine learning algorithms are often used by marketers to create models that predict how likely someone is to become a customer based on their online behavior (such as how often they visit your website or blog). These models allow marketers to focus their efforts on those who are most likely to convert into customers instead of wasting time trying to sell products or services that aren’t suitable for every prospect that comes through.

AI is also used to automate lead scoring and lead generation processes. For example, AI can be used to score leads based on past performance with similar companies or based on the size of their budget for your product or service. You can then use this information to prioritize which leads you want to contact first, based on how likely they are to convert into customers.

By using AI to score your leads, you can dramatically reduce the time it takes for your sales team to go through all your prospects and determine which ones are worth pursuing at any given time. This allows them to focus their efforts on those leads who are most likely to become customers rather than wasting time chasing down people who aren’t interested in your product or service.

Data insights and analytics

Applying artificial intelligence to big data analytics enables companies to gain greater insights from their data sets and improve their business processes accordingly. This means they can make better decisions about how they approach their customers and how they keep them happy and coming back for more services or products.

The use of artificial intelligence in data insights and analytics has been around for quite some time now. It’s used in many different ways to help companies better understand their customers and make better decisions based on this information.

Here are just a few examples:

Data preparation: Data preparation is a vital first step when it comes to analyzing data. In many cases, this process involves manually checking the quality of the data using various techniques such as sampling, checking distribution and outliers, and verifying proper values. While this is still necessary for companies that don’t have access to AI tools, AI programs can help automate this process and make it more efficient by detecting anomalies automatically. This leads to fewer errors in the analysis stage and allows analysts to focus on other tasks instead.

Data classification: Once you have prepared your data for analysis, it’s time to classify it into different categories based on certain parameters like age range or gender. This process may seem simple at first glance but it requires extensive knowledge about your target audience so that you can find suitable categories for each segment.

AI data insights and analytics are being applied across industries today. In healthcare, AI is being used to help doctors diagnose diseases like cancer faster by analyzing thousands of images instead of just one at a time. In education, it can predict which students need additional help so teachers can focus on those who need it most instead of wasting time with those who don’t need extra attention. In retail and consumer goods industries, AI can be used to predict which products will sell best based on consumer trends and shopping behavior so companies know what products to stock on shelves.

Ecommerce marketing

Artificial intelligence is a hot topic in the ecommerce world. AI is being used to power recommendation engines, automate product reviews and more. The technology has many applications for ecommerce businesses and it’s changing how we interact with our customers.

How can AI be used in ecommerce marketing? Here are five ways:

1. Recommendation engines
2. Personalization tools
3. Automated product reviews
4. Chatbots and voice assistants
5. Content creation tools

AI helps ecommerce brands create better content that resonates with their target audience. It can also be used for personalizing loyalty programs and creating targeted campaigns that speak directly to each customer’s preferences. With AI technology at your disposal, you’ll be able to market your brand effectively without having to make any guesswork about how your customers think or feel about your business.

It also helps optimize websites, apps and other digital platforms. AI can help optimize websites by analyzing what users are looking for and then suggesting products based on those search terms. It can also monitor web traffic patterns in real time, making changes as needed to keep users engaged. For example, if a visitor doesn’t buy something after viewing several pages of merchandise, the site might change the layout of the page so it isn’t as overwhelming or offer coupons or discounts to encourage purchases.

Conclusion

It’s difficult to predict the future, but one thing is certain – artificial intelligence will change the way we do marketing in some way, creating new jobs and procedures that we can’t imagine until now. AI use in marketing is surely a great step forward which will help us not only waste less time.

The success of artificial intelligence in the digital marketing field comes from its ability to build a data-driven relationship between two parties who were never able to communicate before. AI can enable marketers to do things they couldn’t do before: bringing easy access to harder-to-reach customers, targeting them at scale and providing them with the most relevant content. our day but also achieve much better results with less efforts.

Artificial intelligence is becoming a dominant force in ecommerce, and it’s not just changing the way we shop. It’s changing the way we sell.

The use of AI in ecommerce is still developing , but there are already some great examples of how artificial intelligence is having an impact on retail.

The ecommerce industry is constantly changing and evolving. The use of artificial intelligence and machine learning has become the norm in this sector. From helping to find products to improve customer service, AI and ML are being used in many ways.

The ecommerce industry is taking advantage of the latest technology to improve their business. Artificial Intelligence (AI) and Machine Learning (ML) have become more accessible as a result of advances in technology. There are several ways in which AI is being used to improve certain aspects of ecommerce businesses.

The only way you can survive in this competition is by implementing AI into your  strategy.

Let’s take a look at some ways and applications of artificial intelligence the ecommerce industry:

Recommendation Engines for Products Recommendations

Recommendations are great, but they have to be relevant. And this is where AI comes into play. AI recommendation engines can help you provide your customers with content that is tailored to their needs and preferences, thus increasing sales and revenue.

Recommendation engines are used in ecommerce to suggest products to customers based on their browsing history, search history and purchase history. In addition to that, they can be used for personalization, targeting and advertising.

Product recommendations in the ecommerce industry are a great way to boost your profit margins and increase sales. They can also help you improve your customer experience by providing them with products they want.

Visual Product Search

Visual search is used in ecommerce to help shoppers find similar products to what they are considering buying. This could be done by taking a photo of it and searching for similar products . It allows you to find similar items without having to manually type in each product name, the customers can a smartphone camera, or  uploading an image from their computers.

Visual search can also be used to identify objects in images and videos, such as clothing, furniture and other products.

The technology works by using machine learning to identify items in an image, then displaying relevant results based on those identified objects. This technology can often help customers find what they ’re looking for faster than traditional text-based browsing.

The technology is relatively new, but it’s growing fast. According to Google Trends data from January 2019, the term “visual search” has grown over 300% since 2016, with searches increasing by 54% in the past year alone.

Voice Search

Voice search is the use of natural language to find information. In simple terms, it is talking to a device like your smartphone or smart speaker and having it respond in a meaningful way.

For example, if you are looking for a restaurant nearby, simply saying “Where can I find a good steakhouse near me?” will get you some results. Or if you want to know what movies are playing tonight at the local theater, just ask and you will be given a list.

Voice search has become more important as more people use it to find products and services online. A study by Google found that 20% of all mobile searches were done by voice in 2015 and that number is expected to increase significantly over time. For example, Apple Pay was introduced in 2014 with support for Siri voice controls and has seen rapid adoption among iOS users (it now accounts for over 50% of online payments).

With this success comes even bigger expectations from users who want everything they need at their fingertips whenever they ask their device a question — including ecommerce sales!

Chatbots

Chatbots are a type of software that can help you interact with customers and take orders. They are often used in e-commerce sites to provide customer service, like answering questions about products or helping customers find what they need.

Chatbots can be used for many different tasks in e-commerce, including:

Supporting the customer service team by taking simple questions from customers (e.g., “What are your shipping rates?”) and resolving them quickly. This helps free up time for more complex inquiries and increases overall customer satisfaction levels.

 It can also be used for various other tasks like booking tickets, ordering food, checking the status of an order, getting the latest deals and much more.

Streamlining order management so you don’t have to manually process orders, handle refunds and other tasks.

Saving time by automating processes like inventory updates or product recommendations based on what customers have previously purchased or browsed online.

Chatbots are also used by brands for marketing purposes. By using chatbots, brands can target their audience on social media platforms where they have presence and engage them in conversations about their products/services or upcoming events related to them.

Inventory Management

Inventory management is a critical part of any business, but it can be particularly challenging when you have millions or even billions of SKUs in your product catalog that change frequently due to seasonality or special promotions. Managing inventory requires a lot of manual effort from employees across multiple departments who must constantly check prices and availability on thousands of products and then place orders as needed. This process can take days or weeks.

Inventory management is a complex process that involves the integration of multiple processes across the supply chain. This includes order management, inventory planning and control, demand forecasting and replenishment planning.

Artificial intelligence can help with inventory management in several ways. For example:

1. It can automate repetitive tasks that take up time and money, such as data entry or decision making.
2. It can help predict demand better by analyzing historical data and current trends.
3. It can optimize product location based on past sales data (e.g., which shelf gets more foot traffic).
4. It can assist in forecasting future sales based on previous years’ sales data (e.g., what percentage increase or decrease in revenue was there from last year?).
5. Selling products faster – By analyzing historical data about customer preferences, AI algorithms can make suggestions on what products should be promoted and sold quickly
6. Trouble-shooting – If there is an issue with one of your products, AI algorithms can help find out what went wrong and fix it before more customers get affected by it

Supply Chain Management

Supply chain management is a complex process and involves many stakeholders, including suppliers, manufacturers, distributors and retailers. As the world becomes more connected and technology advances, it becomes easier for companies to track and monitor their supply chains using artificial intelligence (AI).

Here are some ways AI can be used to improve supply chain management:

Supply chain visibility. AI can help organizations gain visibility into their entire supply chain by providing real-time data analytics. This includes tracking the location of products throughout their journey from production to delivery at retailers. This information can be used to optimize routes, reduce costs and ensure customer satisfaction.

Advanced forecasting. AI has the ability to predict future demand based on historical data analysis and also allows companies to forecast customer demand based on customer sales history as well as weather patterns or economic indicators.

Optimization of inventory levels. AI can help businesses optimize their inventory levels by analyzing customer demand patterns and identifying gaps between demands and available inventory levels. This helps them avoid overstocking or understocking products in warehouses while ensuring customers get the products they need when they need them most — which increases customer satisfaction and loyalty.

Pricing

A recent study found that more than half of all online shoppers say they’re more likely to buy something if it’s offered at the right price. That means that getting pricing right is crucial for retailers trying to win over customers.

How can ecommerce companies use AI in this area? Here are three ways:

1. AI-powered price optimization helps retailers find the best prices for their products. With the help of artificial intelligence, you can use historical data and real-time information about your competitors’ offers to determine how much you should charge for specific items. This approach provides more accurate results than simply looking at past sales data or inputting current prices into an algorithm.
2. AI-powered dynamic pricing allows merchants to set different prices based on demand, which means they can sell more items at higher prices when there’s less demand for them (such as during off-peak seasons). Dynamic pricing makes sense for retailers who want to maximize their revenue by selling out-of-stock items at higher prices when possible or by offering discounts when appropriate.

Fraud Prevention

Fraud is one of the most important challenges facing ecommerce businesses today. Fraudsters are becoming more sophisticated every day and it’s up to you to keep up with them.

Artificial intelligence can help you stay ahead of fraudsters by identifying suspicious transactions before they occur. It also helps you detect fraudulent activity after it happens so that you can take appropriate action as soon as possible.

One fraudulent transaction example is:

Card-not-present fraud – This occurs when a person completes an online transaction using their card details but without physically presenting their card to anyone at the time of purchase. Card-not-present fraud accounts for around 80% of all online fraud according to research from Visa Europe Collab acceleration program report 2020 edition: Fraud prevention through tech innovation. This type of fraud can be reduced with the use of artificial intelligence technologies such as two-factor authentication or biometrics.

Artificial intelligence is a powerful tool that can be used to prevent fraud. Machine learning algorithms are trained on historical data to detect patterns of fraudulent behavior. When new transactions occur, the system compares them against the historical data and classifies them as fraudulent or not based on the probability of fraud.

AI is particularly suited for ecommerce because it can be applied at every stage of the transaction process:

Online shopping platforms use AI to analyze shopping cart data and prevent abandoned carts from turning into chargebacks. This can increase conversion rates by up to 30%.

Merchants use AI to assess buyer risk before approving orders so they don’t have to manually review each one.

Payment processors use AI to evaluate individual transactions for risk before sending them through their systems so they don’t get hit with chargebacks. This can also keep transactional costs down by reducing chargeback fees.

User Experience Personalization

Personalization is a key factor of the modern ecommerce industry. It helps retailers to create a unique experience for every customer and provides them with a personalized shopping journey. However, the traditional approach to personalization has its limitations: it’s time-consuming, difficult to scale and requires significant investments from retailers. That’s why more and more businesses are turning to artificial intelligence for user experience personalization.

Personalization has always been a key part of ecommerce, but with the growing use of AI and machine learning, it’s become easier than ever to tailor content and products to each visitor. This can be as simple as offering customized recommendations based on past purchases or browsing history. It can also include more complex methods like understanding what items are most relevant based on past behavior and current location.

The more personalized your website is, the better chance you have at converting visitors into buyers. This can be especially important if you’re selling products that aren’t easily comparable — for example, fashion accessories or electronics.

Customer Data Platform (CDP)

Customer data platforms (CDP) are a relatively new and emerging technology in the marketing world. They’re designed to help marketers better understand their customers and target them with more effective advertising.

Ecommerce businesses have a lot of data to manage: real-time inventory, order history, loyalty program information, etc. This makes CDPs especially useful for ecommerce sites looking to improve their customer experience and generate more sales.

CDPs are used in ecommerce to manage and analyze customer data from multiple sources. The goal is to collect information about customers in one place so it’s easier for marketers to make decisions based on what they learn.

Ecommerce companies have been early adopters of CDPs. With the rise of omniChanel retailing, brick-and-mortar stores need to be able to track and engage with customers who visit their physical locations as well as those who shop online or through mobile devices. CDPs can help them do that by connecting customer data across multiple channels.

Wrapping up

With the growing speed of ecommerce industry, competition is rising and considering most of these companies are well-funded, businesses will have to adopt more advanced technologies like Artificial intelligence / Machine Learning to win over the customers.

AI is one of the best things to happen in ecommerce. It provides us with endless opportunities to increase sales and conversions by offering unique and personalized experiences to our customers. AI will become one of the determining factors for ecommerce businesses in their ability to remain competitive.