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How AI Search Is Boosting Revenue And Cutting Costs

Gouri ChoubeyNews

As industry suppliers and B2B e-commerce entrepreneurs, you’re constantly seeking ways to enhance efficiency, boost revenue, and trim unnecessary costs. The good news is that AI-driven search technology is here to help you achieve these goals like never before. Deloitte’s recent survey unveils a pivotal issue – 86% of suppliers don’t resolve buyer complaints fast enough. Buyers have access to a plethora of alternatives with just a few clicks

So, the million-dollar question is: “How can suppliers enhance their understanding of buyers to nurture lasting customer relationships while not burdening themselves with huge customer acquisition costs?”

Current Demands in Supply Chain Industry

The Challenge at Hand

In the world of B2B commerce, managing an extensive catalog comprising thousands, or even millions, of items can be a formidable task. One of the key hurdles you encounter is catering to the diverse ways your customers formulate search queries. It’s a bit like dealing with the “long tail” of search problems.

 

Picture this: Customers visit your site with specific products or solutions in mind, but their choice of words and phrasing may not align neatly with your search index’s setup. If you’re thinking this resembles a classic long-tail search issue, you’re absolutely right!

 

Conventional keyword-based search engines require you to painstakingly define rules, synonyms, and keywords to account for every conceivable query variation. This can be an arduous and resource-intensive endeavor. And even after all that effort, there’s no guarantee of perfect alignment between customer queries and your catalog.

 

This is where AI-powered search enters the scene, and the difference it brings is nothing short of transformative. Unlike keyword-driven systems, AI-powered search possesses the remarkable ability to comprehend the context and intent behind a search query. It’s almost like having a conversation with a human, where nuances matter.

 

Here’s the crux of the matter: AI search excels at handling those elusive long-tail queries without requiring you to laboriously build a synonym library, draft complex rules, or inundate your web pages with keywords, all while hoping for a keyword match. With machine learning at the helm of search retrieval, it operates seamlessly “out of the box,” effectively saving you valuable time and resources.

 

Related: 5 AI Tools to Streamline Your Ecommerce Experience

How does AI search work for automating the sales quotes

AI search is a game-changer when it comes to automating sales quotes in the B2B industry. Traditional methods of generating sales quotes often involve manual processes, extensive data entry, and human decision-making. AI search, on the other hand, streamlines and automates this complex task, making it more efficient and accurate. Here’s how it works:

  1. Advanced Data Processing: AI search systems are capable of processing vast amounts of data quickly and accurately. This includes product information, pricing, availability, and customer-specific data.
  2. Understanding User Intent: AI-powered search engines are equipped with natural language processing (NLP) capabilities, allowing them to understand the intent behind a customer’s request. This means they can interpret complex queries and provide relevant results.
  3. Real-time Inventory Management: Access real-time inventory data, ensuring that the quotes generated are based on up-to-the-minute information. This is crucial for B2B businesses that often deal with fluctuating stock levels.
  4. Dynamic Pricing: AI can take into account various pricing factors, such as volume discounts, contract terms, and customer history. It can calculate prices dynamically based on these variables, ensuring that each quote is tailored to the specific customer and circumstances.
  5. Personalization: Incorporate customer-specific information, such as previous purchase history and preferences, into the quote generation process. This personalization enhances the customer experience and increases the likelihood of a successful sale.
  6. Automation of Quoting Process: You entire quoting process can be automated. Once a customer submits a query or request for a quote, the AI system can generate a comprehensive quote, including product details, pricing, and delivery information, without manual intervention.
  7. Cross-selling and Upselling: Analyze customer behavior and preferences to suggest related or complementary products, thereby increasing the value of each sale.
  8. Quality Assurance: Perform quality checks on quotes to ensure accuracy and compliance with company policies and industry regulations. This reduces the risk of errors in quotes.
  9. Scalability: Handle a high volume of quote requests simultaneously, making it scalable for businesses with a large customer base.
  10. Feedback and Improvement: Continuously learn and improve from customer interactions, fine-tuning their quote generation capabilities over time.

Also read: How are AI Translation and Search Engines Transforming the Material Industry

3 ways Industry suppliers can use AI search to boost revenue and cut costs

Industry suppliers in the B2B sector can harness the power of AI search to drive revenue growth and reduce operational costs, here’s how:

Enhanced Product Discovery and Personalization

AI search can significantly improve the way customers discover products within your extensive catalog. Through advanced natural language processing and machine learning algorithms, AI search understands customer intent and provides highly relevant search results. This not only speeds up the buying process but also encourages customers to explore additional products they might not have considered otherwise.

  • Boosted Revenue: By helping customers find products more efficiently and suggesting relevant alternatives or complementary items, AI search increases the likelihood of upselling and cross-selling. This leads to higher order values and increased revenue.
  • Cut Costs: Streamlining the product discovery process reduces the need for extensive customer support or manual navigation through your catalog, ultimately cutting operational costs.

Optimized Inventory Management

AI search can integrate with your inventory management system in real-time. This ensures that customers receive accurate information about product availability, lead times, and shipping options.

  • Boosted Revenue: Real-time inventory updates prevent customers from placing orders for out-of-stock items, reducing order cancellations and lost sales opportunities. Moreover, by offering accurate lead times, you can set clear customer expectations, potentially reducing cart abandonment rates.
  • Cut Costs: Efficient inventory management can lead to cost savings by reducing overstock and understock situations. AI-driven predictive analytics can also help optimize procurement processes, leading to more cost-effective inventory management.

Automated Customer Support and Quote Generation:

AI search can automate customer support inquiries and even generate quotes for potential customers. Chatbots and virtual assistants powered by AI can answer common customer queries and assist in the sales process.

  • Boosted Revenue: By providing instant responses to customer inquiries and generating quotes in real-time, AI-driven automation speeds up the sales cycle. Customers get the information they need quickly, which can lead to faster purchasing decisions and increased sales.
  • Cut Costs: Automation reduces the need for dedicated customer support personnel to handle routine inquiries. It also minimizes the time and effort required to manually create sales quotes, resulting in cost savings.

Incorporating AI search into your business operations not only enhances the customer experience but also empowers your organization to work more efficiently. By boosting revenue through improved product discovery, optimized inventory management, and automated customer interactions, while simultaneously cutting costs associated with support and manual processes, industry suppliers can achieve a significant competitive advantage in the B2B marketplace.

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2) Guide to AI-powered site search and how it works