How to use Artificial Intelligence to improve metrics in e-commerce?

Written by Alana Team
on August 21, 2020

Artificial intelligence is an increasingly present and essential trend in e-commerce businesses, given that, despite the economic crisis caused by COVID-19, the online sales market has been growing.

According to Emarketer, the global growth in e-commerce sales is estimated at 16.5% for 2020. The growth forecast for Latin America is even higher, at 19.4%.




The use of Artificial Intelligence technologies is the solution to meet the demands of online consumers and optimize digital sales operations.  In addition to enhancing key metrics for e-commerce success, these technologies also have the potential to significantly improve the consumer experience.

Read on to find out:

  • AI applications and technologies for e-commerce
  • Benefits of artificial intelligence for online stores
  • How to use AI to improve e-commerce metrics
  • Cases of success
  • How Artificial Intelligence can be part of your team


Types of Artificial Intelligence for e-commerce

Several solutions use Artificial Intelligence which can support the structure of e-commerce in several stages. Some main direct and indirect uses are:

  • Generate customer insights
  • Customize offers
  • Optimize the retargeting process
  • Automate customer service 
  • Optimize customer acquisition costs

Check out the details of how artificial intelligence can improve services and metrics in e-commerce.

Generation of accurate customer data

The more you learn about your customer, the more chances you have of creating effective conversion and retention strategies. Artificial intelligence applications can automate much of the data collection, processing and analysis, and with high accuracy. 

In e-commerce, the data provided by visitors can then be used as an input to offer products and information relevant to each consumer on different platforms, such as email marketing and advertising campaigns.

Also, the integration of AI solutions with Customer Relationship Management (CRM), Data Management Platforms (DMP), and Customer Data Platforms (CDP) platforms facilitates the work of sales and marketing teams.



Offer customization

A strategy that should be adopted by all e-commerce to stimulate sales is the recommendation system. After all, in the era of streaming, which masterfully recommend new content, for example, consumers have become even more demanding concerning personalized experiences.

Algorithms embedded with Artificial Intelligence can analyze preferences and offer products similar to those already viewed by the customer, making the shopping experience more interesting in online stores.

Still, not convinced that personalization is indispensable? According to a survey of insights from Forbes, 72% of consumers interact with the brand only if the message is personalized.



Efficient retargeting

You surely have been impacted several times by product advertisements that you have searched for or viewed, right? Or, if you coordinate e-commerce, you should be constantly working on best retargeting practices to target ads and products to the right customers, at the right time.

Artificial Intelligence mechanisms map in-depth the shopping behavior of each customer. However, these technologies need a high volume of data to perform accurate predictions when targeting ads and messages on different channels.

A retargeting strategy with deep learning, for example, is capable of simulating the human brain in the processing of information and definition of decision-making patterns, without necessarily needing human validation. This type of algorithm tests different combinations of data and messages and learns from the results, obeying the general rules of the brand.


Fonte: IAB

New interaction formats

AI's ability to process natural language (NLP), a process used for machines to understand the language and context of human communication, is what enables brands to offer an even richer experience for each customer. 

E-commerce companies have adhered to this technology in different formats, whether by implementing AI service chatbots and even image or voice search options, given the rise of virtual assistants, for example.

British consultancy OC&C predicts that voice purchases will move $ 40 billion globally by 2022, a considerable jump from the $ 2 billion it currently moves in the United States and the United Kingdom.

These new formats of interaction in e-commerce, besides being convenient, also show commitment to accessibility.

In the case of voice search, AI technology can understand the keywords and the context of the words spoken by the consumer, through the NLP, and then “answer” with suggestions for products and stores. Not by chance, many e-commerce brands have partnered with Amazon and Google to make purchases via Alexa and Google Assistant possible.

On the other hand, AI image research is still not as common in e-commerce, but it is already a reality in other segments. See the example of Shutterstock, the image marketplace, which allows the user to add a picture so that the system can search for similar photos:


More benefits of Artificial Intelligence for e-commerce

In addition to helping e-commerce teams to improve marketing and communication strategies, Artificial Intelligence can improve customer satisfaction and return on investment (ROI) indicators, in addition to, of course, increased sales. 

Check out how AI can help you deliver results:

Increased service capacity

Artificial intelligence can interact with 100% of visitors, without leaving consumers waiting for too long. Thus, AI is not a substitute for human activity, but it manages to increase the team's capacity and, consequently, reduce operational expenses with customer support, in addition to increasing the customer satisfaction index.

Enhanced customer experience

Offering a good buying journey is crucial to sales success. The more personalized the customer experience, the greater the chances of conversion, as 74% of visitors say they are frustrated if the content is not personalized. 

AI helps to reduce the friction points between brands and customers, as it optimizes data management and the directing of customer relationship actions.

Humanization of messages

Many people say they don't like chatbots, and the main justification is the lack of human contact. This is because many interactions with chatbots are still standardized and with little customization.

However, chatbots and automated response tools with Artificial Intelligence, such as Alana Chatbot and Alana Reply, can interact organically and more naturally, a process that has “humanized” the relationship between humans and machines.

Technology, in these cases, serves to complement and optimize the work of human professionals.

High-quality technology can subtly manage to pass as a human, as we can see in this joke between Patrícia Meirelles and Marcio Kumruiam on Alana's webseries.




Site content management

Using AI as a way to guide the experience on the site is also something that can generate more sales. As the person navigates, artificial intelligence learns and can make suggestions to the visitor through push notifications.

These notifications can range from product suggestions to answers to frequently asked questions.

Data sharing and management

Artificial intelligence can answer any topic, as long as it has this information available in its database. If there is no information, the demand is passed on to the human team. This process is done automatically, between integrated platforms.imagem_5_eng-min-2

Leveraging metrics in e-commerce with AI

Metrics are numbers and data that allow the company to assess whether it is on the right path to success. This information should be measured to ensure the financial health of the online store.

Some basic metrics of e-commerce are:

  • Conversion rate;
  • Percentage of abandoned carts;
  • Average ticket value;
  • CLV (Customer Lifetime Value);
  • CAC (Customer Acquisition Cost);
  • ROI (Return on Investment).

All of them have some connection with the increase in sales and revenue. After all, that is the main objective of an online store: to sell more! 

And how can artificial intelligence help improve your e-commerce metrics? It can:

  • Reduce service time
  • Solve problems quickly
  • Generate new leads
  • Offer complementary products (upsell)
  • Respond to reviews and comments in a humane manner
  • Create automatic reports
  • Collect data provided by the visitor
  • Customize content
  • Decrease Customer Acquisition Cost (CAC)
  • Improve consumer satisfaction index

Cases of success: AI applied to e-commerce

Among the most famous success stories of the use of artificial intelligence by e-commerce are the giants Amazon, Alibaba, and eBay.


Amazon has a dedicated page to explain how it uses artificial intelligence to improve the company's processes. 

In addition to the famous recommendation system, which generates around 35% of the company's revenues, AI is also used for:

  • Personalization of content
  • Anomalies and fraud detection
  • Assessing possible customer turnover
  • Voice recognition
  • Image and video classification

Sistema de recomendação da Amazon


Another relevant innovation point is the use of machine learning o improve the operation of warehouses and logistics.


The Alibaba Group owns 14 companies in various sectors, including Aliexpress, the largest marketplace in the world, and invests heavily in the development of technologies. 

The use of artificial intelligence is common on the Aliexpress website, both to suggest products and to answer customer questions.

Also, since 2017, the group has invested in the Damo Academy, project, to encourage research in the following areas:

  • Financial technology
  • Robotics
  • Data processing
  • Machine intelligence


EBay has gone through an almost invisible digital transformation, and has become a modern platform that uses artificial intelligence.

One of the greatest achievements was the launch, in 2017, of eBay Shopbot, a chatbot to help customers in the purchase process.

Brazilian commerce and artificial intelligence

Some Brazilian brands already use AI to offer a differentiated experience to the consumer.

Netshoes, Zattini, Lojas Americanas, and other major stores use the recommendation system based on search behavior on the site. This data is also used in personalized email marketing campaigns.

Other major brands and marketplaces, such as Magazine Luiza, also bet on proprietary chatbots that incorporate their brand characters - such as Lu, in this case, which made the solution very well accepted among customers.




Artificial intelligence as a co-worker

The use of artificial intelligence solutions can assist in several aspects of e-commerce, and Alana has skills capable of meeting a complete and omnichannel strategy.

Alana does not replace a human, but it can work independently and also add to guarantee all the benefits already mentioned.

Technology can be part of your team and add- in:

  • Sales and marketing automation;
  • Customer Care.

Sales and marketing automation

Through continuous learning, Alana can use her brand's best practices to automate processes and perform complex activities, such as:

  • Create campaigns;
  • Prepare reports;
  • Conduct on-site surveys;
  • Generate custom links.

Also, it does basic activities with high quality, and responds to comments and interactions in a humanized way, in Portuguese.



Customer Care and Artificial Intelligence

AI has revolutionized the way to deal with customers and it has optimized the user's shopping experience. 

Regardless of the number of customer service channels, Alana can respond in an integrated manner and transfer information. 

The channels available for assistance with artificial intelligence are:

  • Social networks (Facebook, Twitter, Instagram, YouTube); 
  • Sites;
  • E-mail;
  • Applications;
  • Whatsapp.

The history of artificial intelligence shows that the evolution of technology has been continuous since the 1950s, and has already proved that it is capable of contributing to humans.

To improve your e-commerce metrics, give artificial intelligence a chance.

Discover Alana's proprietary artificial intelligence, its skills, and how it can help improve team performance and boost online sales.






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