Using AI to Personalize the Retail Experience and Increase Revenue

If you’ve been online any time in the past ten years, even for just a moment, you can’t help but see mention of AI. The topic has been in the news for several decades and has been growing in importance in the business world each year for the past fifteen years. Advances in AI and machine learning have enabled deep personalization techniques to customize content by user. With this FREE EBOOK, through data analysis of purchase histories and other customer interactions, you can zero in on what your customers really want and deliver messages that will resonate.

Common Use Cases for AI in e-commerce

Personalized product recommendations: AI has become much more accessible through purpose built extensions and even E-commerce platforms. Personalized product recommendations are one way AI can enhance the customer experience.
Simplifying and streamlining merchandising: The E-commerce experience relies on merchandising that shows customers how products look, feel, and function. And merchandising can be surprisingly complex and laborious to maintain.
More accurate search: AI can automate and simplify this process. Using natural language processing, AI analyzes the language customers use to search for products and learns which words and phrases are synonymous with your product tags

Delivering Intelligent Fulfillment

Effective fulfillment requires managing data flows between multiple systems, including your Ecommerce platform, ERP, OMS, POS, CRM, and more.

Many businesses still rely on batch processing to get data where it needs to go. Unfortunately, periodically run batch processes can lead to disconnects in which your Ecommerce listing can say a product is available, but it is really on backorder. This is where AI and event orchestration can be a game changer and enable customers to receive items where they want and when they want it.

AI can optimize fulfillment for delivery times and costs for every order. With machine learning, it can identify trends, such as late deliveries, and automatically adjust strategies to improve performance.

It can also use weather and other data to predict fulfillment issues and avoid them by not shipping from warehouses in affected areas or even changing the shipping options available for certain product listings. AI enables scale and speed and as we all know responsive experiences are better experiences.

Smooth Automation with AI & Machine Learning

The goal of automation is to accomplish a task with as little human intervention as possible. That can mean anything from scheduling emails in a CRM or marketing automation system, to automate tasks such as product recommendations, loyalty discounts, low-level support, and more.

Efficient sales processes Using AI can help you create a more efficient sales process by gathering data about your customers, automate follow-up abandoned cart inquiries, and more. You can help move customers through the funnel by having them engage with chatbots for simple questions. E-commerce is especially susceptible to AI disruption, as learning technologies and algorithms are currently transforming the way we buy and sell goods online.

Not only can AI perform the tasks we previously did manually, but it can also optimize the customer experience and provide retailers with the information they need to make an informed business decision. E-commerce brands are increasingly turning to artificial intelligence to improve their analytical insights, create a more personalized customer experience and increase their competitiveness.

As the market for AI in E-commerce continues to grow, any brand not investing in its potential will be at a disadvantage.

Intelligent Product Recommendations

Among the major applications of artificial intelligence in E-commerce, personalized product recommendations for online shoppers are increasing conversion rates by over 900% and average order values by more than 3%. With the use of big data, AI in Ecommerce is impacting customer choices thanks to its knowledge of previous purchases, searched products, and online browsing habits

Increased customer retention

Delivering targeted marketing and advertising messages personalized for their customers can increase retention. Merchants typically see a 10-15% uplift potential in revenue and retention from omnichannel personalization strategies. A critical element of personalization is building better data and insights on customers, an asset that also generates additional value across the value chain. The ROI for personalization will most likely quickly outpace that of traditional
mass marketing.

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Of US consumers aged 18-35 demand a personalized shopping experience

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Returns reduction is estimated just by using AR on a website

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Of US customers won’t recommend a business with a poorly designed website on mobile