How AI is Helping Businesses to Keep Up This Festive Season?

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Written By Nipun Singh

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Online retailers and sellers are increasingly interested in artificial tools to increase their digital advantage, as consumers demand rises.

According to the National Retail Federation, retail sales have increased over two decades and are expected to grow 7% and 14% respectively in 2020, and 2021, according to the National Retail Federation.

It is estimated that sales will increase between 6% to 8% this year and account for over $4.9 trillion.

Despite consumer shopping habits returning to normal following the recent pandemic, most people are now shopping online because it is more convenient and sometimes more affordable.

Statista recently reported that 57% of U.S. shoppers intended to shop online in the holiday season between 2021-2022. However, this is slightly higher than the 43% who plan to shop in stores or at on-site shopping centers for holiday shopping.

Businesses are increasing their interest in artificial Intelligence (AI), in response to tumultuous economic activity, and changing consumer markets. AI is hoped that it will help them deal with the holiday season's high shopper demand.

Improve Delivery and Shipment

Online orders for goods and services tend to rise significantly during the holiday season. This leaves online retailers with the difficult task of managing increased logistical administration.

  • Although artificial intelligence is a new technology in logistics, it allows companies to communicate with clients and despatchers simultaneously during shipment.
  • It's now possible for companies to communicate directly with supply chain personnel to track inventory and estimate delivery times for certain goods.
  • With AI, online retailers can be more transparent with interactive maps and on-demand updates about customer orders or shipments.

Customer Experience Enhancement

Online retailers have limited customer interaction, which is crucial because they don't have the same interaction as brick-and-mortar stores.

  • Online retailers can use AI to monitor customer movements across their websites and determine which products and services are most popular.
  • AI can also be used to check if certain elements and actions are functioning at their full potential. AI can flag any issues immediately and notify the owner of the domain or customer.

Building More Personalized Content

Online retailers and businesses have found digital content to be one of the most effective ways to communicate with their customers.

  • Targeted ads on social media and email advertising can be used to reach the customers you want to bring to your online store.
  • Businesses can also make sure they target the right clients with personalized content.
  • Businesses can now monitor retention rates and measure how their personalized content performs in the market of consumers they wish to attract.

Promoting More Initiatives

Consumers are always looking for the best deals and prices. Online retailers need to make sure that they offer customers promotional incentives during the festive season.

This will not only increase brand awareness but also help to boost company profitability.

Businesses can use AI to create initiatives that are directly targeted at the right consumers on the market.

At the same time, they can present them with promotional initiatives like sneak peeks, special deals, or early shopper discounts.

It doesn't matter what it is or how long it takes, AI can help you measure the effectiveness and return rate for promotional initiatives.

Businesses can use email marketing to create a virtual wheel where customers shop online and receive discounts. However, they would also be included in the email list permanently and in promotional content.

The bottom Line

Artificial intelligence has revolutionized the way we spend and consume our money. Small businesses should investigate the many unique and profound ways AI has assisted other companies to deal with increasing online consumer traffic.

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