AI in personalization, especially accuracy, will play a big part in e-commerce in 2024: Creative Synergies Group

Creative Synergies Group is a leading global digital innovation solution provider. It synergizes deep domain expertise with next-gen technologies to deliver convergence of digital engineering, embedded systems and software technologies for customers.

Dr. Soumya Bhattacharya, Executive VP, IoT, AI/ML, Data at Creative Synergies Group, tells us more. Excerpts from an interview:

DQ: What are digital-first retailers doing right, and how can other retailers take a page off their book?

Dr. Soumya Bhattacharya: Prioritizing digital business and assets has proved to be fruitful. So much so that retailers invested over $1 trillion globally on digital channels alone. The accelerated digital transformation ushered in by the Covid-19 pandemic urged businesses to relook at the way they interact with their customers throughout their purchase journey and beyond. Despite the saturation in online retail platforms, digital-first businesses continue to succeed because they have tapped into the pulse of their customers.

With the help of emerging technologies, such as ML and AI, digital-first retailers have the capability to connect with their customers. They understand what their customers want, what kinds of deals interest them, what items are on their wishlist and what items do not pique their interest.

No two people who shop from the same digital-first retailer have the same exact recommendations. This level of understanding allows these businesses to tweak and customize their approach towards each of their customers, prioritizing their needs.

That being said, while there are clear benefits to being digital-first, some businesses may not want to put their digital channel at the top of their priority list. Based on their sector and products, the digital-first approach may or may not work for everyone. However, every business has customers, and putting customers first can never truly go wrong.

Over the past few years, at Creative Synergies Group, we have witnessed the surge in businesses wanting to adopt this approach–and for good reason. We have supported them in their digital transformation journey, adopting technologies such as augmented reality, VR and more, while still maintaining the growth of their business at the forefront.

DQ: How can efficient inventory management lead to enhanced CX?

Dr. Soumya Bhattacharya: Customers, today, aren’t reliant on in-person shopping. While it has its benefits, offline shopping lacks personalization, something that customers, knowingly or unknowingly, are used to. Inflation and ongoing economic uncertainties has also encouraged customers to compare and find the best deals and offers. They like to learn, compare, and experience products through various digital channels before arriving at a final purchase decision, and evidently, it is easier to do online.

While these preferences will continue to change based on factors that can’t entirely be controlled, retailers can make the transition between online and offline shopping seamless. Let’s say a customer visits a store, looking for a particular product, and finds that it is out of stock. However, these products may still be available to order online, but the in-store employees may not have access to this crucial data point. This may make the customer choose to shop with a competitor instead.

Without efficient inventory management systems in place, retailers, especially those that transition from digital-only operations to offline operations, can often struggle. Inventory management systems, integrated with AI, can update the online inventory based on stock availability and also display in-store product options.

This way, when customers come into the store looking for items that are stocked elsewhere but ready to order online, sales representatives can help them order right from the store, enhancing their overall shopping experience. And, that is just one of the many benefits of a seamless inventory management setup.

DQ: How can brands drive customer loyalty in the era of too many options?

Dr. Soumya Bhattacharya: Everyone loves a good deal. ‘50% off,’ ‘buy one get ones,’ ‘clearance sales,’ you name it. Many retailers have caught on to this, running any and all types of deals to pull customers in. While this does help drive revenue, it may not drive customer loyalty.

There is no point of having multiple sales and deals if the customers are going to have poor shopping experiences. Delayed orders, shipping mishaps, delays in refund, poor quality product, and no support from service agents are some of the many reasons deals can only get retailers so far. In fact, just one bad experience with a brand can make over 50% of the customers switch to a competitor.

For long-term rewards, retailers need to rely on technologically-forward and effective digital customer experience solutions. Analyzing and interpreting data, deploying AI-based intelligent chatbots, AR-based virtual shopping experiences and monitoring post-sales customer journeys are some tools that can help retailers foster customer loyalty.

DQ: As the sector continues to evolve, what are some dos and don'ts in the e-commerce industry?

Dr. Soumya Bhattacharya: As the e-commerce industry continues to grow and evolve, even the smallest misstep could impact business in more ways than one. There are several online stores that have cropped up over the past few years, but their website interface isn’t always appealing. The site crashes and bugs out, which can be particularly challenging to deal with during payments.

Simply having a website is not enough. It has to work efficiently across devices and in regions that the brand operates in. Digital transformation solutions can iron out these challenges, and prove to be an investment with long-term returns.

Legacy brands that have thrived despite ongoing trends and preferences have done so by simply listening to their customers. They have made it a point to monitor their reviews and feedback and worked to ensure that customers’ pain points are addressed. According to a 2022 report, customers remain loyal to brands that address their shortcomings quickly and sincerely.

Additionally, brands that deploy digital solutions need to also ensure that their customers’ data is secured and protected. The number of cyber attacks and data breaches are on the rise, and brands that work with sensitive customer data need to have resilient cyber defenses in place.

But, there’s a huge gap between recognizing the dos and don’ts, and investing in digital transformation solutions tailored towards retailers. Many shy away from taking the step because they may not entirely understand how these technologies can drive business success.

Creative Synergies Group has worked with many e-commerce businesses, globally, to adopt digital transformation solutions effectively and without overstepping the budget. We help them at every step of the way, ensuring that each challenge is addressed head-on.

DQ: What are some 2024 digital innovation trends that retailers can prepare for?

Dr. Soumya Bhattacharya: In 2024, we can expect to see deliberate and purposeful changes in the retail landscape. Digital transformation will be at the forefront of it all. AI in personalization, especially its accuracy, will play a big part in e-commerce in 2024.

Personalized recommendations, order fulfillment, and all other touch-points will become more accurate as algorithms and techniques will continue to evolve and improve. If AI was big in 2023, the coming year will make its integration unavoidable. AI will seep into pricing, competition surveillance, finance, cash flow optimization, category selection, and pretty much every aspect of a business.

AR/VR-based virtual shopping experiences will become more widely adopted to enhance customer experience by bringing the store to the living room. The virtual store concept is set to gain momentum in 2024, and many well-known brands will look into making AR/VR technologies their own.

For e-commerce, logistics is a big-ticket item. Supply chain and logistics innovations through IoT will continue to improve predictive fulfillment. Customers will get better visibility in their delivery, driving loyalty, and thereby, helping e-commerce businesses cross over the last-mile hurdle that they often struggle with.

Sustainability metrics have slowly become important factors for customers. In 2024, we can expect to see deployment of sustainable materials across sectors, reducing the carbon-footprint of retailers globally.