Do you ever wish you had the ability to read your customer’s mind so that you can tell what they want before they’ve even ordered it?
That wish can easily come true in this age of automation with artificial intelligence (A.I.) technologies.
Being able to predict what customers will purchase from your store helps reduce the likelihood of overstocking or understocking your inventory and the consequences that go with it.
The pains of overstocking and understocking
Overstocking can take a heavy toll on businesses, especially those that deal with physical goods.
It will probably put your mind at ease, knowing that you’ve got an item available in case somebody asks for it. Still, it can do more harm than good.
First, a large volume of items on hand will require more storage spaces which we all know aren’t cheap; second, some items might not sell due to changing seasons; and third, you can end up throwing away items with a limited shelf life.
Understocking is just as damaging as holding excessive inventory; it sends your customers to your competitors who have what you don’t have.
Tech companies that specialise in A.I. platforms which can predict the types of products your customers are likely to order can prevent those things from happening.
Read your customer’s mind
A customer’s preference is as unpredictable as the weather—if not more—but you can find out what they intend to buy in the next couple of weeks or months through a machine-learning platform.
Machine learning is a form of A.I. which has the capability of collecting and analysing huge volumes of data for predictive purposes.
It makes forecasts on what your customers will buy based on several factors including your products and categories, historical sales data, most searched for items on your website, as well as weather conditions and bank holidays, among others.
Because it is designed to mimic the human brain, a machine-learning platform also has the ability to automatically refill your inventory with the appropriate items without human assistance.
The information you get from it shall enable you to plan your inventory more efficiently, thus reducing your costs on surplus inventory.
Reduce product returns
Having a clear knowledge of what your customers want not only spares you from having to worry about slow-moving or obsolete items in your inventory, but it also reduces the possibility of product returns.
Although customers may return stuff for various reasons, a machine-learning algorithm is designed to study a buyer’s purchasing behaviour and predict the likelihood of a return.
Once it detects the high probability of an item being returned, it will offer a customer other alternatives to their initial choice before they head over to the checkout page.
A.I. technologies are increasingly becoming an essential part of the eCommerce industry, offering sellers simpler ways of managing their online stores.
What’s your stand on this? Let us know in the comments below.
To your continued success,
Dave & Matt