Machine learning is being widely used by enterprises, owing to its popularity. Machine learning is a subset of artificial intelligence, being originated from pattern recognition methodology. It performs certain tasks by providing informational output, where there is no need of individual programming. Putting it differently, machine learning is all about automating complicated tasks where a lot of programming efforts are required.
Machine learning is growing and is being utilized by various industries. Moving forward let us have a closer look on how machine learning will impact the digital commerce industry.
Segmentation – Machine learning can be used to put together customer segmentation. Customer segmentation helps enterprises selling online to have a better understanding of customer behavior while buying online. The data obtained from customer segmentation can then be used to strategize effectively and understand which group of customer is more lucrative and which type of customers are well-engaged with brand.
Fraud detection – Buying or selling product online can be prone to risks, resulting in returned orders and unnecessary wastage of logistic and time resources. To avoid this, machine learning can be beneficial where it improvises fraud detection process by recognizing patterns of fraud on the website. It also ensures that these kind of losses do not occur in future.
Intellectual search – Machine learning will majorly impact product search of an online shopping website. Usually search engines emphasize upon keywords that deliver most appropriate results. But, intellectual search mechanism provided by machine learning will also consider click rates, customer ratings, reviews and product inventory including the margin. The intellectual search provided by machine learning will understand customer behavior rather than just what they have typed to search the products.
Product recommendations – Amazon’s ‘customers also bought’ section is one of the best example of product recommendations. Machine learning offers a great opportunity to online sellers to generate an experience that is more personalized and engaging through product recommendations.
Marketing algorithms – Machine learning can be used to send email to customers with personalized content rather than sending same email template with just a change of name. This can reduce the chances of email spams and increase click rates of emails. Digital companies can use customer data available at their end to understand customer preferences and use it to send personalized emails.
Machine learning is a fresh and interesting concept providing lot of benefits. However, enterprises must use machine learning to streamline and automate processes to compliment human efforts that goes in to strategizing customer engagements.
