How artificial intelligence helps retailers deliver the highly personalized experiences shoppers desire
There is a new reality for consumers goods purveyors in the online world: to figure out how to gain an edge over Amazon. To do this, many retailers are attempting to differentiate themselves by creating highly curated experiences that combine the personal feel of in-store shopping with the convenience of online portals.
With all the people and the infinite amount of unique combinations that could produce, how can a human team possibly handle that? They can’t. These personalized online experiences are powered by artificial intelligence (AI). This is the technology that enables e-Commerce websites to recommend products uniquely suited to shoppers, and enables people to search for products using conversational language, or just images, as though they were interacting with a person.
Using AI to personalize the customer journey is a huge value-add to retailers. Retailers that have implemented personalization strategies see sales gains of 6-10%, a rate two to three times faster than other retailers, according to a report by Boston Consulting Group (BCG). It could also boost profitability rates 59% in the wholesale and retail industries by 2035, according to Accenture.
In our own product suite we are seeing a significant lift in conversions and media optimization when we use AI to determine what landing page/creative/offer combos work best. We see AI as a space, specifically in e-Commerce, where technology has to go. Here are a few trends that we are certainly keeping our eyes on:
- Digitally native retailers are setting new standards for the customer journey by creating highly curated experiences through the use of AI. This has enabled them to cater to consumers’ desire to interact with mobile apps and websites as they would with an in-store sales representative.
- By mimicking the use of AI among e-commerce pureplays, brick-and-mortars can implement similar levels of personalization. AI can be used to provide personalized websites, tailored product recommendations, more relevant product search results, as well as immediate and useful customer service.
- For many retailers, successfully leveraging AI will require partnering with third parties. This has led to the rise of AI commerce startups (just like us), which can provide a more cost-effective approach to overhauling the customer experience.