As an eCommerce tech integration specialists, we’ve been reflecting on the growing conversation about how eCommerce sites (both b2b and b2c) in New Zealand handle the vast amounts of data generated every year. The global data output is mind-boggling, and with our small population, we still generate about 1.62 petabytes of data daily.
At Convergence, we recognise that AI thrives on this data, presenting an opportunity for e-commerce business. However, there needs to be balance between the customer experience and respecting their trust and privacy.
Data on customer insights, behaviour, and preferences can help us connect and engage with customers, which fosters business success. But neither should this data be used carelessly or exploited—it’s bad for businesses and customers alike.
Living in a digital society means many of us have surrendered some privacy. eCommerce businesses are advised to seek customer awareness, acknowledgement, and permission to use their data in exchange for a more personalised experience. Once that is established, generative AI can be a powerful tool for personalising communications and offerings, creating meaningful interactions by understanding specific preferences.
For example, knowing a customer is a left-handed golfer allows for relevant product recommendations. However, personalisation must deliver real value. If a customer buys an eBike, the follow-up should include information on local biking tracks rather than a constant push for services and parts.
Research shows that many retailers and eCommerce sites struggle with data access and integration, and customers have ethical concerns. Retailers should integrate various data sources—like point-of-sale software, CRM, and inventory management—to provide insights and improve AI accuracy (talk to us about how to do this).
A significant number of Kiwis worry that AI will produce biased results, which makes transparent AI practices essential to building trust. Customers should opt in to data collection and usage, with an understanding and agreement to how their information will be used.
Here are three suggestions for ethical use of AI in eCommerce trade.
1. Ask for Permission
Ensure customers are aware of and consent to data collection. Use clear opt-in tick boxes and avoid using cameras for anything other than security purposes without explicit consent.
2. Personalise Thoughtfully
Use the data to offer genuine value and provide valuable information that aligns with customer interests without constantly trying to make a sale.
3. Maintain Transparency
Communicate how customer data will be used and ensure it will only be used for its intended purpose, as well as protected.
eCommerce businesses would be well advised to integrate their data sources to improve AI accuracy and personalisation, while ensuring an ethical and transparent approach.