How to Scale with AI in the world of eCommerce
How to Scale with AI in the world of eCommerce
March 6, 2020
Recently, Enalito partnered with the Vinculum group to present a webinar on ‘How to scale AI in the world of eCommerce’. Both Enalito and Vinculum are working in the same direction of making the retail lifecycle easy, efficient and successful.
Vinculum is a global software company enabling the eCommerce and Retail Ecosystem with SaaS-based products for Multi-channel Order Management & Fulfillment. The company provides services for Automated Catalog Listing, Inventory & Order Management, B2B Warehousing & B2C Fulfillment, Payment Reconciliations, Consistent Master Data/ Product Enrichment, Seller Panel for Marketplaces, Omnichannel experience & Cross-border Solutions. Vinculum serves 1500+ customers globally and with Enalito, it plans to deliver the best analytics, personalization, and omnichannel campaigning while automating the complete retail lifecycle for online stores.
Enalito handles all eCommerce issues by digging deep into the customer as well as the product data so as to implement Customer & Product Segmentation. It delivers 360° Analytics to personalize user experience and serve the best campaigns. Enalito helps to resolve issues like defected customers and stagnant sales by using data intelligence. It can completely automate the retail lifecycle by tracking activities and personalizing the customer’s end-to-end shopping experience. Enalito takes care of everything an online store desires to get command on.
Let’s get ahead and find out what was the essence of the webinar presented by Enalito’s Founder & CEO, Anand Katakwar and Enalito’s Co-Founder, Amit Koshal, in association with Vinculum Group.
Challenges to building a successful online store:
We see the market share of the Indian eCommerce industry is ruled by the bigshots. These giants have taken over almost 75% of the Indian eCommerce market. Thus, do you see any chance of emerging among them with your present store and the marketing solutions?
If yes, we wish you good luck with that. But, in case it is a no, then stick to your store and don’t let the giants digest your reputation. Don’t diminish your store’s name for the sake of attractive sales you get from their platform.
If you sell on giant marketplaces like Amazon, Flipkart, etc, you earn good money but can’t establish a business of your own. However, it’s a fair opportunity to sell on these platforms too, but you should establish your store first and then sell on marketplaces for additional revenue. Although, we all know that brand and reputation aren’t build in a day. To become a part of the hefty 75% of eCommerce rulers, it takes an awesome store with the necessary strategy to counter the retail problems. It requires an inevitable marketing strategy to attract and acquire interested customers. Further, deliver the best and most satisfactory customer experience.
To do this, it is necessary to mark your presence before your customers on every single channel they use. Whether it is social media, email, web, etc. A store needs to acquire customers from all of them. But as we say this, you might be thinking “How can I sell & combine all of the channels to attract customers, sales, revenue and PROFITS on my store?” Well, the answer is Omni-Channel Retailing with Retail Lifecycle Automation.
So, the webinar started with an introductory question to audiences :
Question: Do you know which customers you are about to lose?
Answer: Yes: 10% No: 90%
Based on the answer we realized that apart from the eCommerce bigshots, there are many other problems that are faced by an online retailer.
The most common e-commerce problems encountered by almost every retailer are Poor Conversions, Stagnant Sales, Defecting Customers, Inventory Stack up, Scarce analytics, and the like.
If you are a retailer, you must be able to relate to these eCommerce problems or you might just be trying to get over them. Whether it is poor conversion rate, diminishing ROI, stagnant sales or inventory stack-up; a retailer faces these obstacles in their store’s lifecycle and needs consistent optimization. However, most of these problems surface due to Scarce Analytics.
In the absence of Analytics, even the existing data that can help make profitable decisions remains unused. Artificial Intelligence runs on data and proper utilization of it can yield the best of AI for the business.
Enalito works on Artificial Intelligence backed with the power of Machine Learning & Predictive Analytics to enable segmentation and personalization with effective campaigning. Our prime focus is on ‘How to optimize your business strengths and rectify business weaknesses using AI?’ After all, a successful online business is all about magnifying your strengths to grab the best opportunities. And taking care of the weaknesses to get rid of all the negative touchpoints.
Let’s get ahead and find out how this can be done using AI through Enalito.
How to optimize your business strengths and rectify business weaknesses using AI?
Enalito gives analytical help through various powerful KPIs. They are continuously tracked to give actionable insights for building better revenue opportunities. Enalito offers vital 600+ KPIs like Customer Lifetime Value, Customer Growth Rate, Customer Churn Rate, Average Order Value, and many more.
Analysis of KPIs is not a one-time job and needs consistent tracking to have an idea of changes taking place in the business. Analyzing and tracking the KPIs helps to identify the strengths and weaknesses of the business. Now first, we should understand what we mean by the strengths and weaknesses of an online retail business.
The strengths and weaknesses of any business are directly dependent on two important factors: customers & products. Businesses have always been concerned about customers more than the products they are selling. Retailers look for ways to attract customers to buy instead of stocking products that can attract sales on their own. This is why it is crucially important to pay equal heed to both customers and products.
The weaknesses of a retail business are the defected/defecting customers, while in product sense– the products which stock the shelf and don’t produce good ROI build the weaknesses. On the other hand, the loyal customers (who come back and repeat purchases) and fast-selling, revenue-generating products add up to the strengths of the business.
AI helps to recognize as well as optimize many more strengths like these to create better opportunities. It also helps to eradicate (or at least heavily reduce) the weaknesses. Enalito excels in doing both of these for retailers. Later, you will understand how we optimize the strengths but first let’s know how we rectify the weaknesses. Enalito handles it through Rule-based Campaigning.
Rule-based Campaigning aims at engaging defecting customers and selling the stacked-up products. Proper analysis of customer and product data tells the right campaign, right discount and targets the right customers with the right products. Rule-based Campaigning is initiated after understanding the business scenario and deciding what can be the best to drive sales. Such campaigning is not only important to rectify weaknesses but also empowers strengths by uplifting the loyalty of customers and increasing sales of popular products.
To execute a 360° optimization for automating the retail lifecycle, there are a few measures that Enalito formulates for retailers. These measures are taken by adopting a few robust methodologies to analyze the customer and product behavior, to apply proper segmentation. The chart below gives an understanding of how segmentation is applied for both customers and products through RFM Analysis of Purchase, Browsing and Cart behavior. This is done to improvise campaigns and drive better sales opportunities.
Through Segmentation, tracking of RFM (Recency, Frequency & Monetary Value) for browses, purchases, and cart reactions gives actionable insights for various attributes and durations. The use of AI formulates the data and analyzes it with such precision and reliability that the derived segments lead to the effective delivery of targeted personalization and campaigning.
In the retail industry and almost every other customer-driven business, people believe that customers deserve the whole concern. While, the other side of the deal is Product which deserves equal focus, and if known properly; products are capable in themselves to drive sales and revenue. Thus, Enalito not only excels at customer analytics but equally deep dives into products too. It is through both-Customer Analytics & Product Analytics that Enalito empowers retailers with the best analytical solution for automation.
Enalito segments customers and products based on their various on-site behaviors with the help of RFM methodology by implementing Dynamic Segmentation. Finally, all the RFM values of different behaviors of products and customers are brought together and added up to the existing segmentation to turn it dynamic. With dynamic segmentation, RFM methodology is deeply explored and the most reliable segmentation is yielded.
Further, we asked our webinar audience another question to know are they able to predict the future revenue of their store. The answer was:
Question: Can you predict the future revenue of your store?
Answer: Yes: 40% No: 60%
Probably this percentage of the audience can’t predict the future revenue of their store. But we are quite sure that the remaining ones who can predict it are using AI. Artificial Intelligence helps extensively to uplift business in all the areas. We discussed many of the points in the webinar that defined how AI can help.
How AI can help?
AI is capable of providing an end-to-end solution to all the retail business problems by utilizing the store data that already exists and keeps on growing to make the analysis more accurate and deliver better results.
Artificial Intelligence excels at:
- Right Segmentation
- Personalized Recommendations
- Smart Promotions (Seasonal, Weekly, Monthly)
- Dynamic Discounting (Optimal)
- Suggesting Email Engagement Time Slots (Timed Delivery)
- Improving Digital Spend ROI (Targeted Campaigning)
- Smart Chatbots
- Fake Review Filtration
All of this AI help is driven by data and the more accurate data is, the better will be the results. Enalito goes deep into the data and breaks it down into various values and ratios to get actionable insights. When necessary insights are obtained, Enalito strategizes the personalization and targeted campaigns. Let us give you a glimpse of Enalito that features a few of the most powerful KPIs to decide and take future actions:
Enalito’s Overview shows various crucial KPIs like Predicted CLV, Customer Churn Rate, Repeat Purchase Rate, Customer Growth Rate and many more for customers and equivalent ones for products too. The AI-powered product suite gives insights into both Executive-level as well as Performance-level touchpoints and rates.
We asked our audience another question to know if they need better analytical solutions to uplift their retail business. See what we found:
Question: Is your data analysis giving you the desired results?
Answer: Yes: 36% No: 64%
Almost 2/3rd of the audience said their data analysis isn’t giving desired results. Many tools use the data and give insights. But the problem comes up when those insights can’t be transformed into actions. It’s extremely important to have data analytics that can drive actions for business improvement. Enalito is a powerful analytics tool whose each insight drives actions. Let’s get ahead and find out How Enalito is using AI at unexplored heights.
How Enalito can help?
Enalito AI – The Right Segmentation
Enalito creates the most accurate and easy-to-interpret segments for both customers and products. Based on each of the two RFM values for customers and products, a grid is formed. This grid denotes the defected, great and average customers and products. Hence, to counter these problems, retain the customers and keep selling the stocked products a necessary campaigning strategy is created.
Enalito AI – Strengths and Weakness
Enalito shows the performance level trend for 6-powerful KPIs which denotes the ‘Trend’ and a ‘Change in Trend’ graph with the business score for each KPIs performance. Similarly, it also denotes the positive, negative and neutral customer and product trend for each KPI. The positive, negative and neutral trends denote those customers or products which have contributed more, equal to or less than what they did previously.
Having an idea of the strengths (positive customers and products) of the business can be used to uplift revenue. Thus, campaigns are induced to retain defected customers and sell the stacked stock.
Enalito is an end-to-end product that solves all eCommerce problems. It takes in all types of personal, demographic, transactional, device-type, on-site behavioral and engagement data. Furthermore, it integrates and processes it with AI, Predictive Algorithms, Big Data, Natural Language Processing (NLP) and Machine Learning. Due to this, Enalito can automate retail lifecycle and ease the process of acquiring and retaining customers. It presents Omnichannel Customer View, deep Analytics & Insights, Personalization Solution, Marketing Automation with the aid of Campaign Dashboard.
Enalito aims and excels at optimizing the whole retail ecosystem. It has made the extensive use of AI to incorporate a retailer’s needs into one product. Along with the Vinculum group, we are planning to ease the life of retailers. Deliver them a product that can uplift revenues and profits.
Finally, our last question of the webinar was related to the most exciting thing for retailers- Revenue.
Question: Can you measure the ROI?
Answer: Yes: 20% No: 80%
ROI denotes how well your business is performing with your investment. If you are unaware of it, then you are walking down a dark road in the online world. But it’s not such a big issue as Enalito tells it right away. Besides, it not only tells the present ROI but also predicts future revenue.
Enalito displays two graphs showing customers and products denoting the change as well as the actual values for the KPI’s. Enalito gives complete insights for every aspect and attribute that lies in an online retail business. The analytics and derived automation is a 360° solution for all eCommerce needs.
To watch or download the webinar, please visit: