Artificial intelligence (AI) is one of the most buzzed-about topics in the tech world today. And for good reason – AI software has the potential to transform just about every industry, including the ecommerce industry.
From personalized product recommendations to automated customer segmentation, AI can help e-commerce businesses increase conversions and drive revenue growth.
In this article, we’ll explore 8 ways that businesses can use AI in ecommerce marketing.
Personalized Product Recommendations
AI can be used with ecommerce personalization strategies.
Content creators are able to provide unique online experiences based on online browsing habits within an app or website interface using machine learning models such as Natural Language Processing (NLP).
NLP enables real-time automation of recommendations across web stores and applications without having developers manually write code each time a change is required.
AI algorithms analyze customer data such as:
- Purchase history
- Customer behavior (browsing and cart abandonment)
- Ratings and reviews
Based on the generated customer data, AI systems can recommend products that customers are more likely to purchase.
Retailers can improve the online shopping experience by understanding how people feel about their product offerings. Using natural language input such as customer experience reviews left on websites or apps provide actionable feedback for operations to improve customer retention and marketing teams to make campaign adjustments.
Automated Customer Segmentation
A survey of 1000 people revealed that 80% of them prefer to do business with a company that personalizes customer interactions [NotifyVisitors]. That's why segmenting your audience is critical before delivering marketing communications to them.
AI algorithms can be used to segment customers into different groups based on customer intel such as demographics, buying behavior, and interests. Artificial intelligence can analyze customer data and group similar customers into distinct segments, allowing marketers to send targeted messages based on customer preferences and interests.
This will not only help increase conversions but also improve customer loyalty.
With AI tools such as natural language processing, marketers can use automated segmentation models on large sets of data that help identify customers with similar buying patterns of online shoppers across various channels and services offered by an ecommerce platform.
Utilizing these insights allows marketers to tailor more personalized messaging while targeting users they know will likely respond favorably based on past interactions which significantly increases ROI over time.
Optimizing Search Results
The search function is the most commonly used feature and yet many ecommerce sites still can’t process complex search queries. The navigation menu, filter feature, or promotions on the homepage are much less important because people use search to find things fast.
According to a Google Cloud for Retail report, search is vital for a positive shopping experience:
- 9 in 10 U.S. consumers (90%) say a good search function is very important or absolutely essential
- 97% agree that their favorite retail websites are ones where they can quickly find what they are looking for.
AI-powered site search can help optimize e-commerce search engine results pages (SERPs) by displaying the most relevant products to customers based on their search queries.
Artificial intelligence algorithms can analyze customer search terms and pull in the most relevant products for display, increasing the chances of a customer making a purchase. This can help drive website traffic and boost conversion rates.
Automated Email Marketing
Artificial intelligence can be used to automate email marketing campaigns by sending personalized, triggered emails to each customer segment.
AI algorithms can analyze customer buying behavior and send emails with personalized content and recommendations based on customers’ preferences. This can help boost open rates, click-through rates, and ultimately, conversions.
Email marketers who segmented their audience before campaigning stated that the revenue generated increased to up to 760%. Targeted and segmented emails bring in 58% of all revenue. [NotifyVisitors]
Generating Dynamic Product Images
According to ThreeKit, 93% of consumers consider visual appearance to be the most important factor in their purchasing decisions.
AI-powered dynamic images can generate images of products with different sizes, colors, and style options. This makes it easier for customers to find the product they’re looking for since they can preview what the product looks like in different sizes and colors before making a purchase.
While you want your dynamic images to be an accurate representation of your goods, you also want to ensure that they are visually appealing in order to achieve the best return on ad spend (ROAS).
If you're considering using AI chatbots to help with your ecommerce marketing, you might be onto something. According to a HubSpot article, nearly 50% of people are interested in purchasing goods through a chatbot.
AI-powered chatbots are like virtual assistants that can be used in ecommerce for providing automated customer service, performing product recommendations, offering personalized discounts, marketing promotions, and collecting customer feedback.
From a marketing perspective, chatbots can be linked to marketing automation tasks such as directly connecting an email marketing platform to the chatbot to automatically begin sending relevant emails based on the conversation that just happened.
Automated Promotions and Discounts
People want brands to show them relevant products and services, especially when it comes to promotions and discounts. And yet, 42% of marketers don’t segment, and only 4% segment with multiple data types (and that’s where the hyper-segmentation starts). [SalesManago]
AI can be used to automate ecommerce promotions and discounts. AI algorithms can analyze customer data to determine when to send promotions and discounts to customers. This can help drive customer engagement and increase conversion rates.
Discount campaigns remain a key pillar for driving conversions within retail operations everywhere but manually creating or optimizing discounts takes up too much manual effort and resources which causes delays in implementing potential opportunities due to special circumstances like geolocation sales etc.
Through the power of artificial intelligence, retailers don't need specialized personnel overseeing discount campaigns all the time anymore because automation & optimization generates promotional calendars according to predicting user behavior scenarios quickly at any time of the year.
Realistically, brands can use AI data to know exactly which features they should include when marketing new products, and figure out which products are the best to run ad campaigns.
AI algorithms can be used to optimize ecommerce product pages by analyzing customer browsing behavior, ratings and reviews, and other data, reducing development costs and improving quality assurance.
Artificial intelligence can do a lot for e-commerce businesses, from segmenting customers to optimizing product pages.
This article has given you some ideas on using AI technology to improve your e-commerce marketing efforts.
By using AI, ecommerce businesses can create a more personalized and targeted experience for their customers, which can lead to more sales and conversions.
If you're not using AI in your ecommerce business yet, now is the time to start.