In today's rapidly evolving business landscape, implementing an omnichannel commerce strategy has become a paramount objective for organizations seeking to provide seamless customer experiences across multiple channels. For example, a January 2024 market research report projects substantial growth in click-and-collect sales in the UK, which is expected to reach more than EUR 50 billion by 2026, accounting for more than 18% of retail E-Commerce. Clearly, omnichannel commerce is the wave of the future.
As companies strive to stay competitive and meet the ever-growing expectations of modern consumers, the incorporation of artificial intelligence (AI) has emerged as a powerful tool to achieve critical business growth objectives. AI holds the potential to contribute to, and revolutionize, an effective omnichannel commerce strategy that personalises experiences. targets marketing campaigns, improves demand forecasting accuracy, automate and optimize inventory levels across multiple channels, identify fraudulent transactions in real-time, and ultimately enhance engagement and improve the customer experience.
The Power to Personalize Customer Experiences
For nearly every business today, the focus is on improving the customer journey. AI can help ensure those customer experiences are the best they can be. AI-driven technologies, such as machine learning algorithms and natural language processing, have the capability to analyse vast amounts of customer data and dynamically personalise experiences across various touchpoints. From targeted marketing campaigns to chatbots and virtual assistants, AI empowers businesses to deliver tailored content, recommendations, and interactions that enhance the customer journey. For instance, Starbucks leverages AI to power its app and reward system, which allows customers to order, pay, and collect their drinks conveniently. The app also uses AI to suggest products and offers based on the customer’s location, time of day, weather, and previous purchases. This helps Starbucks to increase customer satisfaction and loyalty, as well as drive more sales and revenue.
As customers shop and interact with retailers in new and expanded ways, omnichannel commerce focuses on making sure those customers have the payment choices they want and that the payment experience is completely frictionless.
Get into the Heads of Customers with Predictive Analytics and Demand Forecasting
With its ability to sift through extensive data sets, AI can significantly improve demand forecasting accuracy in an omnichannel environment. By analysing historical sales data, customer behaviour, market trends, and external factors, AI algorithms can generate reliable predictions that assist in optimizing inventory management, reducing stockouts, and aligning supply chains with customer demands. According to McKinsey Digital, the precision that AI brings to forecasting slashes errors in supply chain networks by an astounding 30 to 50%. The ripple effect of this accuracy is felt throughout the business ecosystem. This can lead to a significant drop—up to 65%—in lost sales stemming from out-of-stock scenarios.
AI holds the power to better understand customer preferences, anticipate changes in the way they wish to pay and best position the business to meet those shifting demands.
Enhanced Customer Engagement Improves the Experience
Conversational AI technologies, such as chatbots and voice assistants, enable customers to engage with businesses seamlessly across various channels, including websites, social media platforms, and messaging apps. These automated virtual assistants can provide real-time support, address queries, and guide customers throughout their purchase journey, leading to improved customer satisfaction and increased engagement.
Efficient Inventory Management Delivers Cost Savings
AI-powered inventory management systems leverage advanced algorithms to automate and optimize inventory levels across multiple channels. By considering factors such as historical sales data, customer demand patterns, and supply chain disruptions, these systems can ensure that the right products are available at the right time, reducing stockouts, minimizing excess inventory, and optimizing order fulfilment processes. According to a recent study by McKinsey, companies that adopt AI in inventory control can achieve up to 20% reduction in inventory carrying costs and 50% decrease in stockouts.
Play it Safe with Smarter Fraud Detection and Prevention
As online transactions continue to rise, AI is playing a crucial role in safeguarding businesses and customers from fraudulent activities. AI algorithms are exceptionally good at analysing patterns, detecting anomalies, and identifying fraudulent transactions in real-time. By leveraging AI-based fraud detection systems, organizations can mitigate risk, protect customer data, and ensure a secure shopping experience across all channels. By reducing incidence of fraud, merchants are able to reassure consumers that their data is safe, helping to build stronger customer loyalty.
In addition, AI fraud detection systems can help companies save up to 70% of operational costs and reduce fraud losses by 60%.
Seamless Tracking Leads to a Better Customer Journey
AI-enabled analytics platforms allow businesses to track and understand the customer journey seamlessly across various touchpoints, both online and offline. By capturing data from multiple channels, AI algorithms can provide valuable insights into customer behaviour and preferences, enabling organizations to enhance engagement strategies, optimize marketing efforts, and offer a consistent shopping experience across all channels. And the better the customer journey, the more likely they remain loyal to the brand, which is particularly important in today’s highly competitive marketplace.
The benefits of incorporating AI into an omnichannel commerce strategy are vast. From personalized customer experiences to predictive analytics, enhanced engagement, efficient inventory management, fraud detection, and seamless customer journey tracking, AI empowers businesses to deliver exceptional experiences and stay ahead of the competition. As technology continues to evolve, organizations should explore the immense potential of AI and embrace its integration to achieve success in the era of omnichannel commerce.
