The reach of technology applications for online businesses is vast and ever-growing. As new technologies emerge on a regular basis, businesses are constantly searching for methods to use them to enhance operations and reach new consumers.
Applications of Technology in Online Businesses
Let’s take an example. Customers see advertisements for Michigan casino bonuses but don’t see the complex web of technology necessary to create such promotions in the regulated online casino industry. Many tech applications, like chatbots and livestream commerce, are available to casino businesses. As technology continues to evolve, casinos must stay current on the latest trends to remain competitive.
Below are some of the most popular tech applications for online businesses in 2023:
Chatbots and IVAs
Chatbots and intelligent virtual assistants (IVAs) are highly efficient tools for engaging with customers while decreasing engagement costs. E-commerce has many benefits for customers, such as the ability to purchase goods at any time and from any location. However, one area where e-commerce has traditionally been lacking is customer engagement.
In a physical store, salespeople can provide customers with information about products, suggest complementary items, and offer advice to help customers make decisions. Chatbots and IVAs can perform these same functions on websites, mobile apps, and messaging services like WhatsApp. This sales strategy is known as conversational commerce, and customers are willing to pay up to 16% more for such engaging services. Moreover, automation makes it possible to cut call center costs by up to 75%.
Recommendation Systems
According to a survey, thirty percent of customers are ready to pay more for recommended products. This is because people are constantly bombarded with suggestions, so they appreciate personalized recommendations. The overall benefit is higher rates of engagement and boosted sales. For example, experts estimate that Amazon’s recommendation engine is responsible for more than one-third of its sales.
In this regard, other experts suggest that executives deploy behavioral analytics to better predict their customers’ wants. Recommendation systems can also be integrated with pop-ups to alert users about discounts or unchecked-out carts. This can help online businesses reduce site leakage and cart abandonment.
Livestream Commerce
Livestream commerce is a type of e-commerce in which a host streams a video on a commercial platform, showcasing different products in real-time. Viewers can then purchase the products directly from the shopping site.
Livestream commerce can help increase sales by providing a more personalized shopping experience. Viewers can see the products in real time and ask questions about them. Moreover, livestream commerce reduces costs by eliminating the need for brick-and-mortar stores. This can save businesses money on rent, utilities, and other expenses.
This form of e-commerce is most prevalent in China. During the 2022 Global Shopping Festival on the Taobao platform, for instance, over 300 million users viewed live-streamed sessions. Companies in the United States, particularly in Michigan, have also noticed a growing trend towards this upgraded version of “shoptainment.”
AI-Based Pricing Tools
In highly competitive markets, quickly adjusting prices to match those of competitors can have a significant impact on conversion rates and help you take advantage of small margins.
With the use of pricing tools, you can instantly evaluate your prices by comparing them to those of your competitors, as well as your inventory levels and delivery policies.
With this knowledge, you can manually adjust prices or, more often, set up your online store so that prices are automatically adjusted based on changes in the competition. This strategy can help your eCommerce business stay competitive.
Everything-as-a-Service (XaaS) Cloud Solutions
Everything as a Service (XaaS) is a cloud-based delivery paradigm that gives enterprises on-demand access to a vast array of IT resources. This includes software, hardware, and infrastructure, as well as a variety of services such as disaster recovery, security, and analytics.
By 2027, the market valuation for XaaS is anticipated to reach $624,1 billion, a rise from $198.6 billion in 2021. Businesses of all sizes are driving this growth due to the rising demand for flexibility, convenience, and cost-effectiveness.
XaaS offers a number of advantages over traditional IT solutions. Businesses do not need to purchase or maintain their own hardware or software. What’s more, XaaS solutions can be easily scaled up or down as needed. XaaS providers typically have more robust security measures in place than businesses can implement on their own.
As XaaS continues to grow in popularity, businesses can expect to see a wider range of solutions available as well as improvements to existing offerings. This will make it simpler for businesses to find XaaS solutions that satisfy their requirements.
In a Nutshell
The following tech applications provide strong insight into the shifts that online businesses across all industries are expected to observe this year as digital revolutions take a new course in 2023. An online business has a considerably higher chance of staying ahead of the competition and improving internal processes if it adopts the insights from these forecasts early on.
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