Let’s find out how cognitive computing in e-commerce affects today’s digitized market in India.
Whatever we eat, whatever we buy, what we breathe in, the way we sleep, the way we work is all based on technology. In fact today no area of life is devoid of technology. But in this process, somewhere everything is becoming mechanical, there is less room for personalisation.
Wait a minute! Technology can help in personalizing things too. Really, and e-commerce is one of the biggest examples to illustrate that.
We are talking about Cognitive Computing technology that is a lot more than just personalisation. It is a set of contextual, interactive and adaptive systems that adds a human touch to user experiences online. Cognitive computing in e-commerce is more instinctive and hence successful in collecting rich personal data.
Cognitive technology not only empowers consumers but also helps them to re-discover themselves. This is a process wherein a computerized system emulates human-thought processes with the help of techniques like Natural Language Processing, Pattern recognition, Data Mining etc.
Today, Cognitive Computing in e-commerce has the following advantages:
(1) Evaluating Customer Data and their online purchase behavior: Cognitive Computing in e-commerce can be particularly helpful in detecting hidden patterns in customer’s data. The brand preference of the customer, their online purchase frequency, their navigation pattern on the store, their life events are all the various data that make cognitive computing methods actionable.
Once the software has insights on all these factors, they are able to decipher a repetitive pattern that helps to build deep insights.
(2) Predicting Purchases in Advance: Every retailer whether online or offline would love to know when the customer would make his next purchase. While in a brick and mortar store, the retailer can derive some idea from the body language and repeat visits of a customer, an online retailer has to resort to Cognitive Computing in e-commerce to forecast this.
Predictive Analysis can help to make predictions on the customer’s purchasing choice and its frequency. Once a retailer knows about the upcoming trends, he can strategically place the products for the customers on their next purchase. This makes the online shopping experience more engaging for the customers.
(3) Optimal Pricing: Price fluctuations in retail segment are very frequent. Most of these fluctuations are because of various factors like supply constraints, customer demand, tax related matters, regulatory changes, competition, festival & events etc.
Price fluctuations matter to retailers because these impact customer’s purchase preferences. It is very challenging for the retailers to keep track of various fluctuations happening across portals and in the real world. However, price optimization tools based on cognitive technologies is a saviour.
This helps online retailers to understand how the customers will respond to the price fluctuations so that they can price their products optimally. Optimal pricing is all about retaining the customers as well while maintaining the operating profit.
(4) Right Product Recommendations: This is the first step in creating a personalised environment for online shoppers. There are recommender systems based on cognitive computing in e-commerce that provide personalized recommendations to the client.
These recommender systems notify the customers about their preferences through mobile apps, desktop pop ups, social media pages or email newsletters. These recommender systems also help retailers to gain insights about customer behaviour and the product performance.
(5) Business Process Management: There are software programs and algorithms to help retailers and online merchandisers to manage their business processes.
One example of this the IBM Watson Commerce which uses an application powered by cognitive abilities that help merchandisers to detect anomalies and abnormalities in their online store and recommends appropriate steps to fix the issues. Cognitive models help online retailers to manage their operations seamlessly for a better and engaging customer experience.
(6) Digital Voice Assistants: The way people browse web is changing. You don’t need to spend your precious time to type and scroll always because there are voice assistants at your service. Amazon’s Echo Alexa and Google Assistant are examples of cognitive ability based voice assistants that empower customers to order their preferred products and have them delivered within the next few hours.
Retailers increasing investments on Cognitive technologies
Online retailers across the world are increasing their investment in cognitive computing in e-commerce. They have recognized that only studying purchase patterns based on age, gender and income is not enough.
For a more fulfilling and engaging customer experience, the analysis has to be based on extensive and varied data. This is how they can be more responsive to customer needs and place things before them even before they express their demand. The actions in this competitive age indeed need to be that quick!