Is GenAI The Secret Sauce Behind Ecommerce's Festive Success?
As the ecommerce ecosystem rides on success this festive season, generative artificial intelligence (Gen AI) has been one of the key wheels of the chariot
Gone are the days when businesses were put on a pedestal. Today, they are treated as humans who do good things and not-so-great things. As the world has moved from broadcast to conversations, it has become non-negotiable to have a framework that not only engages the customers in real-time but also helps the businesses and platforms retain them.
As India indulges in a long festive season, ecommerce platforms are leaving no stone unturned to cash in on every opportunity to get that competitive edge. What has been their companion in their journey towards becoming the architect of consumer experience? The answer is Generative Artificial Intelligence (Gen AI). The unparalleled advantage of having a unified personalised feed for a user and crafting unique experiences for them is what makes Gen AI an indistinguishable part of the ecosystem.
Personalisation Remains The Key
As the ecommerce platforms report a record number of sales during the ongoing festive season, the change has been evident. The ability to cater to every unique user differently has made the difference this time around. With Gen AI, the platforms are now able to speak directly to the preferences of the potential consumer during the festive season when there is a rush all around.
“Generative AI is poised to transform the upcoming festive season, offering brands unprecedented opportunities to enhance customer engagement and drive sales. Its ability to generate personalised, culturally relevant content and provide real-time insights allows for highly targeted marketing campaigns, ensuring messages reach the targeted audience at the right time,” stated Venkatakrishnan Mani Iyer, Vice President and Head of Manufacturing and Life Sciences Industry, India Business Unit, Capgemini.
Talking about humanising virtual assistants, the festive season brings positivity and consumers do not want to simply sit around and talk to a ‘machine’ while explaining what they need. The platforms have creatively integrated GenAI to improve and amplify user engagement. “AI-driven chatbots can efficiently handle a large volume of customer inquiries, providing instant support and product suggestions, thereby improving customer satisfaction during peak shopping periods,” highlighted Swagat Sarangi, Co-founder, Smytten
Customer Service is being enhanced by GenAI-powered chatbots and virtual assistants to craft a tailored ecommerce experience and enhance customer service with instant support, improving the shopping experience.
The Case Of Inventory Management
The festivals have been termed as the most commercially active periods of the year for a reason. While the brands and platforms pile up stocks to match demand with supply, there is always a concern regarding the risk of shortages or overstocking. This is where Gen AI comes into play again.
“AI will also assist in inventory management by forecasting demand, optimising stock levels, and adjusting pricing strategies,” stated Vikas Bagaria, Founder, Pee Safe. While highlighting that AI can streamline various aspects of marketing, Bagaria added that it can analyse the behaviour of consumers based on past purchase data, thereby forecasting the trends.
Noting that Generative AI can be beneficial for brands to respond swiftly to market demands and stay ahead of the competition, especially during high demand, Iyer added that it can optimise inventory management to predict consumer trends utilising social media.
“AI can more accurately predict demand trends, allowing retailers to optimise their stock levels and reduce the risk of shortages or overstocking,” Sarangi added.
Solution Seeking Consumers
As digital shopping has marked a shift where consumers move across different channels to figure out the perfect purchase, the need for having a unified theme across all channels has been the priority to cultivate trust. The changing consumer behaviour has been at the forefront of this enhanced focus on the integration of GenAI in the ecosystem.
“Marketers need to be especially vigilant during this festive period, as shifting consumer preferences require a rethinking of strategies—consumers are not just buying products; they are seeking solutions to their needs. Consumers who once fell into the same target demographic may now have entirely different requirements, stated Soumya Chatterjee, Director Customer Success - India, GfK - An NIQ company.
With a bouquet of festivals lined up going ahead, the platforms are gearing up to leverage the features of the ‘machine’ tool to ‘humanise’ the content that they cater to their consumers and in that journey, cultivate loyalty and trust along to improve the revenue.
