Could AI Save $4.6 Trillion of Lost Sales?

In 2016 alone, online retail lost $4.6tn of sales due to cart abandonment and mobile is making the problem even worse (Business Insider). Cart abandonment considered to be one of the major issues facing online retailers of all sizes and industries. Traditional solutions to this problem require lots of efforts and it is very costly, in this article we will show you how artificial intelligence can help in overcoming cart abandonment with much less effort and cost. But first, let’s have a look at why shoppers abandon their carts.

Why are carts abandoned?

There are several reasons why customers will abandon their carts (E-Commerce: Why Customers Abandon Their Shopping Cart), following are key ones

1-  Is it good for me?

Not every shopper knows exactly what they need, some shoppers use carts as a tool for comparing between products which take time and the shopper might need to ask recommendations or check reviews and that gets them more confused and not able to make a decision. Adweek reported that 36% of shoppers spend over 30 minutes researching online before making a purchase. Carts end up abandoned this way and most of the shoppers are not likely to come back and recheck their carts rather than just go to a real store and seek guidance from a salesperson.

2-    Usability

Based on a survey done by baymard.com on why shoppers abandon their carts, 27% was due to complicated checkout pages or overall store usability. Online shoppers shop online for a fast and easy process, having to go through too many pages not knowing when will it end or where should take them to the next page make them lose interest and just abandon the carts.

3- Distractions

Distracting shoppers with too many suggestions and ‘’often bought together’’ would not increase sales or conversion rates, yet, it will drive shoppers more confused and it is going to be hard for them to make a decision. Suggestions might be beneficial when the customers’ needs are clear but suggesting too many products based on assumptions, leads to a wrong way.

Now, how could AI solve the issue of cart abandonment for good?

To solve the previous issues, sellers and shoppers have to have a channel to communicate so shoppers won’t spend much time understanding or comparing and sellers could get the chance to show how beneficial their product is to their customers. A conversation here is the solution but assisting customers by having one to one conversation trying to understand their needs and provide solutions while providing this premium experience to everyone by dedicated salespersons is impossible. Conversational AI technology plays a very good role here, AI-based virtual shopping assistants were made to create that channel between merchants and shoppers.

1- AI lets you know your customer’s needs

Technically, online sellers want to know what is going on in the customer’s mind. AI-based shopping assistance technology made it easier for sellers to provide what is really needed from the shopper side. In case a shopper wanted to compare between products, his virtual shopping assistant could do that for him without wasting time or efforts. Virtual assistants also have a  predictive characteristic that makes it able to highlight the features of a product that fits the shopper’s specific needs based on his behavior and intents.

2- AI assists your customer through all the journey

To solve usability issues, the virtual assistant will provide more interactive and dynamic experience that is tailored for customers in real-time. Thanks to AI being able to understand their needs and customize the contents and experience based on evolving one to one conversation with customers

3- AI Suggests the right products

Instead of distracting customers by too many suggestions and recommendations throughout the online store. AI-based shopping assistant will increase the chances of conversions by providing more precise and relevant recommendations based on an intimate understanding of customers needs. This way customers won’t spend too much of time browsing irrelevant products and will stay focused. that all these suggestions do not only match his needs but would also work together.

Virtual shopping assistants can create a digital shopping concierge. It is powered by advanced artificial intelligence and machine learning algorithms. This technology is able to predict the consumer behaviour and help shoppers make smarter and more informed purchasing decisions.

What you need to know now is that artificial intelligence is not that far and applying a virtual shopping assistant is not a big deal. It is a hassle, coding-free process and could easily be applied to your online store and crawl into all your products and be ready in a very short time. Apply for Tactful.ai and get your very own virtual shopping assistant now.