How companies are using AI to transform the online gifting industry
Over the past few years, the online gifting industry has emerged as a major player in the Indian ecommerce market, expected to grow to $ 200 billion by 2026.
The long-term growth prospects for India's online gifting market remains robust, and by 2024, the country is expected to become one of the most prominent contributors to the global gift retailing market.
This growth is fueled by the emergence of AI-based players, encouraging innovation in gifting, considered an extremely personal activity to date.
Gifting - a changing landscape
The idea of gift-giving has advanced from greeting cards, sweets and toys, etc., to a more personalised experience, leading to an increase of options and competition in the market for the same.
Although a majority prefers the idea of personalised gift-giving, truth be told, with everyone's lives being so fast-paced, finding an original gift for that special occasion or special someone gets more difficult every year.
This is where AI-based gifting portals have stepped in to help people find the right gifts for the right moment.
Young people fuel the growth of AI in the online gifting industry
Gift-giving has always been an extremely personal activity. While this activity is a sign of appreciation among people, it is also an extremely tedious and meticulous job.
As per recent research by a digital consumer service, 45 percent of millennials preferred using AI-based services when finding a gift for friends and family, as the machine learning algorithm to sort and narrow down relevant products from a company's database makes gift selection a breeze.
Also, knowing that AI can help provide multiple options in terms of gift selection helps build a positive experience.
Many players in the industry have realised the need for an AI-based approach to online gifting and have adopted artificial intelligence to solve gift-giving challenges.
Below are the many ways they are using AI to transform online gifting.
Faced with overwhelming choices, consumers often find it challenging to choose the right gift, whether for a festival or a special occasion. As a result, personalisation has emerged as a way to help users find unique and thoughtful gifts, perfectly befitting any occasion or relationship.
Companies are harnessing artificial intelligence to delight receivers through personalised gifts that are customer-centric, adhering to the preferences and choices of the recipient.
Certain platforms have even innovated to the extent that they analyse the customer's social data and internet footprints to provide custom suggestions. The best part is that the solution can be tailored to the needs of both consumers and corporate gifting.
As a result, the customised suggestions for gifting options are not unique to the receiver but also shows a person's efforts in creating memories for them. Moreover, this AI-fueled personalisation is far less time and energy-consuming.
Customer behaviour prediction
Many online gifting platforms have started experimenting with the application of behavioural economics to understand the psyche of each customer and devise an approach for gifting suggestions that cater uniquely to each customer's psychology and emotions to increase purchases.
The process involves predictive analysis based on previously acquired data like previous choices, previously browsed items, etc. Companies are using predictive analysis and behavioural economics for customer segmentation, augmentation, and improving customer satisfaction.
Any improvement in customer satisfaction improves retention, loyalty and significantly impacts the ROI.
AI-powered gifting subscription model
An emerging trend in the industry is to use AL and ML algorithms to ensure that one does not forget a special occasion—from anniversaries to birthdays by rolling out subscription-based gifting services that send out reminders and personalised gifting options days before a momentous occasion.
Some platforms ask people for their relationship and budget for the gift and send a list of personalised options, giving the final choice to the person making the order.
The change in gift-giving to that over an AI-based online medium has made it much more convenient for millions to select gifts and approve of them just from a click.
The industry is witnessing a renaissance, where AI infuses repeatability and improves customer satisfaction through time-saving measures like personalised gifts, timely reminders, saved details like delivery addresses, names, etc.
The future of the gifting market has many potential avenues that have yet to be fully tapped into, and with the advent of AI, Data, and ML, there is no doubt that online gifting marketplaces will continue to see an exponential rise over the years.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)