The future is here. Artificial Intelligence has been the talking point for over a decade now, and we can finally say that its implementation for an intelligent future has begun. AI is going to dictate the future we have, and it will have a key impact on numerous industries. Not only industries, but consumer habits and behavior would also be impacted by AI as the mass interaction between brands and customers across the buyers’ journey will bring about a lot of innovation.
While the common perception is that AI will impact manufacturing companies more than any other industry, the latest research in this regard has shown that AI is also having a significant impact on the end consumer. Retail has always been a hotbed for analytics and machine learning, and with AI in place currently, consumers are within the target range for most marketers.
In other ways, AI is impacting the way buyers currently behave.
Obviously, since consumers are directly linked to AI and what it brings, they will want to know the impact it will have upon them. Here we look at the impact of AI on consumer habits and how it can dictate the way consumers buy products and services from the market for the days to come.
Customers Will Splash More Cash
With all the analytics in place, the bottom line with AI is that customers will splash more cash than before. The age of consumerism will soon reach to unprecedented heights with AI in full flow.
Abhinav Aggarwal, the CEO of an AI startup, believes that customers will end up spending more on goods and services now that AI is in the mix. He believes, “Fully cognitive websites will drastically change buying behavior and selection. We see the average spending of a buyer per session significantly increasing with these websites. Cognitive sites take consumers through a much smarter funnel, allowing them to buy before user fatigue starts to kick in or the user gets distracted.”
The idea behind this change in consumer behavior is that AI will use different analytics to find more about consumers and their needs. With this information generated through the systems, brands will develop better selling techniques to target the consumers. These selling techniques will catch the customers right when they are in need of something and are about to buy it.
Just imagine all the emails and texts you receive when you are busy or don’t have time to read them. This is a wasted resource for sellers. With AI-backed data analysis, you would know just when to send your target audience a text promotion. They will catch you lying on the bed in your home more often than before.
Customers Will Become Loyal
Customer loyalty is something that businesses have been chasing for quite some time now. The best businesses out there are those that have a loyal customer base with them. Research centered on this topic has suggested that attracting new customers to your brand can be an expensive and time-consuming process. The alternative to this process is to have customers that stick with your brand through thick or thin. Attracting a new customer and building a new connection is believed to be around 25 times more expensive than retaining a current one.
It is believed that AI can uncover some intelligent customer insights that can encourage loyalty within consumers. Digital consumers have numerous choices around them; so much so that they are currently exhausted with the huge stream of choices around them. AI can not only cut down on these options, but give customers the very best.
Air BNB’s search option is powered by AI, and helps cut down on the time taken for customers to find a suitable spot for staying. The AI powered search cuts through massive amount of data to give all users specific listings personalized to their needs and demands. The user’s past history is studied in detail, and they are showed a personalized package according to their interests and the kind of Airbnb experiences they have had in the past.
Customers Will Become Accustomed to Greater Convenience
Online shopping and retail options have already given customers a lot of convenience, but that convenience will soon multiple by 10 with AI’s implementation. One of the biggest innovations here would be of face and fingerprint recognition for multiple online and offline purchases. The voice detection technology driven by AI can allow consumers to chat around with digital assistants and try to get the best out of the product they are buying. This virtual connection will spell a world of good for most consumers.
A recent example of AI in play can be the Pinterest Lens. This feature by Pinterest allows users to find their everyday home items online. What you need to do is take a picture of the item and upload it on the app.
Customers Will Shift to Voice Technology
A lot of the leading retail and financial organizations are shifting over to voice technology, because customers feel more comfortable using it.
Voice searches are easier to manage for customers, and they also help generate better results than textual queries. Moreover, the use of digital assistants in our daily lives has meant that customers are now more open towards using voice technology in their daily life. The initial barriers have gone, and customers prefer voice over text now.
Customers will put more trust on brands
User privacy is an important detail, and organizations realize that the trust of their customers is extremely important for analytics to start. So, they will look out for this trust from customers. Customers will also realize their overall benefit here, and would start trusting businesses with their private consumption information. Once customers start experiencing the thrills and benefits of AI, they will realize that they have got all to benefit from this wave of AI. And once they do realize that, they will start trusting organizations more with data, so that they can achieve their cumulative good.