The Next Consumer Evolution: AI-Powered Commerce
The Next Consumer Evolution: AI-Powered Commerce
‘The adoption of Live Commerce will continue to grow for many businesses as its impact far outweighs the investments required for implementation,’ writes Latif Sim, Chief Strategy Officer at BeLive Technology
The digital age continues to revolutionise the way consumers interact with businesses; the rise of e-commerce has made shopping easier and more convenient, whilst the growing prominence of social media and live commerce has provided businesses with a platform to engage with customers, establish relationships, build trust and increase sales. Now, however, AI-powered commerce looks set to be the next chapter in the evolution of e-commerce.
Undoubtedly, one of the main drivers of the evolution of e-commerce has been the widespread adoption of smartphones and mobile devices which has made it easier than ever for consumers to shop online, and benefit from the convenience and flexibility of online shopping, enabling shoppers to compare prices easily and access any online-only deals. With these advantages in mind, it is no surprise that more and more shopping activity is taking place online. According to a recent survey by Milieu Institute, 73 percent of consumers say that online shopping is part of their integral daily life. Much of this activity takes place on mobile devices with one report suggesting that mobile commerce will account for 43.4 percent of all e-commerce retail sales by 2023, a growth from 41.8 percent in 2022.
With engagement and sales conversion falling into the consumers’ fingertips, businesses began to explore technologies to retain them. This gave rise to Artificial Intelligence (AI) and Machine Learning (ML) which enabled businesses to offer tailored and personalized shopping experiences to their customers.
Social media has also had a big impact on e-commerce. Platforms such as TikTok, Facebook, Instagram, and Twitter have become powerful tools for businesses to connect with consumers and build relationships with them. Social media has also made it easier for businesses to promote their products and services to a wider audience. With video and live streaming capabilities, these platforms have allowed consumers to better engage with businesses and their products or services. In addition to this, live streaming also allows consumers to do this in real-time and ask questions directly to the merchants before receiving immediate feedback. With the ability to replicate a near in-store experience, now virtually, platforms are using live streaming to bridge the gap of convenience and allow consumers to cart out while watching a live stream.
Live commerce and social commerce began gaining traction with the masses due to their ability to connect and engage with consumers and make it convenient and easy for them to make purchases online. It became the latest trend in e-commerce and involves typically just broadcasting live video content to consumers in real time. They are versatile and can be done through a variety of platforms such as mobile apps and websites, rather than just being restricted to social media.
One of the several key reasons why live commerce is adopted readily is its ability to convert viewership to sales. Some salient features of live commerce that make it so powerful and impactful for businesses include:
1. Real-time Interaction
Live Commerce allows businesses to interact with their audience in real time. This can help build trust and establish a relationship with potential customers. By answering questions and providing demonstrations, businesses can show their audience the value of their products or services.
2. Sense of Urgency
Live Commerce creates a sense of urgency that can encourage viewers to make a purchase. By creating a limited-time offer or discount code during the live stream, businesses can motivate viewers to take action and quickly make a purchase to ensure they get the best deal.
3. Authenticity
Live commerce is often seen as more authentic than pre-recorded video content. Viewers feel that they are getting a behind-the-scenes look at the business and products, which can help build trust and establish a relationship with the audience.
4. Social Proof
Live commerce allows businesses to showcase social proof by highlighting positive reviews, testimonials, and customer feedback. This can help build trust and establish credibility with potential customers.
The adoption of live commerce will continue to grow for many businesses as its impact far outweighs the investments required for implementation. With conversion rates approaching 30 percent for such technology, it is no wonder that businesses are exploring them as part of their enhancement and business strategy.
The power of AI
The fast development of Artificial Intelligence (AI) has also had an impact on online sales as AI has already revolutionized the way businesses interact with consumers. AI-powered chatbots are now commonly used to provide customer service and support. However, the potential of AI goes far beyond this. The potential for AI is almost limitless and there are a few ways AI might evolve to provide new and even more engaging features, such as granular personalization, voice commerce, and augmented reality capabilities.
With granular personalization, AI can be used to provide even more personalized recommendations to customers based on their past purchases, interaction with live streams and videos, and even browsing history. This can help businesses understand the different personas that are interacting with them and take necessary actions to increase customer loyalty and drive sales conversion. Voice commerce may grow with the help of voice-enabled assistants such as Amazon Alexa and Google Home, which are becoming increasingly popular. In the future, businesses may be able to use AI to provide voice-enabled shopping experiences. Customers could simply tell their smart speaker what they want to buy, and the AI would take care of the rest. Lastly, augmented reality can create more immersive shopping experiences. For example, customers could use their smartphone or tablet to see how a product would look in their home or office before making a purchase. While such ARs are beginning to be visible in some parts of the world, the adoption of augmented reality is still in its infancy, but we can expect this to grow over time.
In conclusion, while the adoption of live streaming is a powerful tool for brands looking to connect with their audience and build trust and loyalty is gaining momentum, the technology surrounding the ecosystem is developing fast and moving ahead of the innovation curve. It is imperative for brands and businesses exploring live commerce as part of their product offerings to partner with solutions providers who are able to understand their requirements and bring in insights from having worked with hundreds of implementations globally. This way, brands across the globe can ensure they are meeting modern consumers’ demands as well as integrating the top technological trends to stand out and keep clients coming back for more.
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