AI has transformed the nature of the eCommerce business in many ways. Artificial Intelligence or machine intelligence replaces human intelligence with machines that possess the same cognitive functions of learning and problem-solving as humans.
The best part about AI is that it can perform cognitive operations with more accuracy and a faster speed than humans. It is the foremost reason for which eCommerce businesses use AI. From improving customer experience to business market research automation, AI brings about a revolution in the eCommerce industry. Consumer insights is another area in which AI is doing wonders. In this article, we will be discussing four ways in which AI is transforming consumer insights.
Why Is Market Research for eCommerce Essential?
Market research has become essential for eCommerce. From ensuring a better consumer experience to gaining quality consumer insights, market research holds great significance in different spheres of eCommerce businesses. It is impossible to gain relevant and genuine consumer insights without proper market research. Moreover, without accurate consumer insights, you cannot improve customer satisfaction as consumer insights play an essential role in understanding your customers.
Market research helps companies gain competitive and actionable consumer insights that can be used for text analytics and sentimental analysis. It is also the best way to know your target audience and the latest trends in the market. Businesses can generate more leads if they know their consumers better. Moreover, you can also know about your competitor’s strategies with market research. It helps you to learn how you can improve your business. Besides, market research also helps in promotion and advertising.
Earlier traditional market research methods such as surveys and polls were the easily accessible options. However, they are time-consuming and expensive. In the age of digital transformation, AI-driven market research has replaced traditional market research to a great extent. It has resulted in tremendous growth of AI text analytics tools and eCommerce marketing platforms.
Below Are Four Ways AI is Transforming Consumer Insights
Market Research: AI-driven market research for eCommerce helps you get actionable and competitive consumer insights faster. There are eCommerce platforms such as Revuze that use AI tools to gain real-time consumer insights that can be used for sentimental analysis. Earlier surveys and polls were the prominent methods of performing market research. However, they are time-consuming and expensive procedures. Moreover, they are not very reliable. However, market research conducted using AI tools is faster and more accurate. AI tools can be used to extract large amounts of relevant data and user-generated content.
Data Cleaning: Data analytics cannot be performed on inadequate or irrelevant data. Insufficient data comprises missing, irrelevant, duplicate, and inconsistent or data with errors. Performing data analytics on bad data leads to inaccurate results and consumer insights. Therefore, it is crucial to clean the extracted data before running data analytics. However, this process is too time-consuming when done manually. Moreover, it can further lead to human errors. Nonetheless, AI is changing the way companies perform data cleaning. AI algorithms substitute insufficient data with useful data to make it fit for analysis.
Understanding Open-ended Questions: Analysing open-ended questions is not an easy task. Open-ended questions can generate quality insights. However, the main challenge is to analyze open-ended feedback and questions. With a human-centric approach, there are chances of errors and biased analysis. Moreover, it’s time taking and tedious. However, interpreting open-ended questions with AI algorithms is free from any biases and errors. Also, it is less time consuming and less costly.
Faster Insights: With AI, gaining quick consumer insights has been made possible. Surveys and polls are time taking market research methods to gather consumer insights. With the traditional market research methods, taking appropriate actions on the insights takes a long time, and it is not suitable for your business. Whereas, with AI, you can collect actionable and competitive insights in no time.
Faster insights mean that you can act and respond to your customer’s needs in less time. As a result, more customers will be attracted to buy from you. It will, in turn, result in increased sales and profit.