The Synergy of AI in Marketing: Improving Sales Forecasting and Customer Loyalty
In today’s digital age, where e-commerce reigns supreme, the importance of data-driven insights cannot be overstated. With the exponential growth of online platforms, the volume of text data has skyrocketed, presenting both challenges and opportunities for businesses looking to optimize their sales forecasts and build customer loyalty. Recent research efforts have revealed the potential of leveraging artificial intelligence (AI) to reveal the hidden gems buried in text data, providing invaluable insights into consumer behavior and preferences.
Understanding the Power of Text: Improving Sales Forecasting
Traditionally, sales forecasts focus primarily on consumer reviews, neglecting the untapped potential of product descriptions. Recognizing this gap, Shan Chen and colleagues embarked on a pioneering journey to explore the impact of product descriptions on sales forecasts. Through the integration of text mining techniques, WaveNet neural networks, multiple regression and the SHAP model, they built an innovative AI framework capable of deciphering the nuanced relationship between product descriptions and customer outcomes. sales.
Their empirical study, leveraging nearly 200,000 sales records from a cross-border e-commerce company, provided fascinating insights. A staggering 44% of key phrases in product descriptions have been identified as important determinants of sales forecasting. Remarkably, adding these key phrases to sales forecasting models resulted in tangible improvements in forecast accuracy. By elucidating the influence of product descriptions on consumer choice, the framework provides practical guidance to businesses striving to craft compelling product narratives tailored to market demands, thereby enabling them to attract a more broad and stimulate income growth.
Unveiling the transformative potential of AI in marketing
Simultaneously, another group of researchers, led by PS Venkateswaran, looked into the transformative role of AI in improving marketing and customer loyalty. AI’s unparalleled ability to analyze vast data sets, predict consumer behaviors, and deliver personalized experiences has…
