Ever felt like your favorite online store knows you a bit too well? Like it somehow reads your mind and shows you exactly what you didn’t know you needed? That's no coincidence. AI is creating an ecommerce experience specifically designed for each individual shopper, working quietly in the background.
Powerful AI applications in ecommerce are transforming how businesses market products, manage inventory, even how your customer service team handles customer complaints. From personalized product recommendations to smart search capabilities; from detecting fake reviews to predicting future sales trends— AI is making waves. But how can you utilize AI tools to add value for your business?
This article dives into how AI shapes online shopping experiences with everything from tailored product recommendations to seamless checkouts to dynamic incremental revenue opportunities like product protection.
The Power of Personalized Recommendations for Ecommerce Businesses
Artificial intelligence is rapidly changing the face of ecommerce. AI is not only about optimizing speed or efficiency - it's also about giving your customers a shopping experience that is specifically designed for them.
One of the biggest advantages artificial intelligence brings to online shopping is its ability to provide tailored product recommendations. AI's utilization of customer data, such as prior purchases, browsing activity and even social media interactions, provides an opportunity to generate personalized product recommendations that are not arbitrary.
This level of personalization has proven incredibly effective at boosting conversions - personalized product recommendations can increase sales and revenue up to 20%. But it's not just about selling more products. By making sure each customer feels seen and understood through customized product marketing messages, you also enhance their overall shopping experience.
Advanced algorithms analyze customer data, such as purchasing patterns and browsing behavior, and use this information to generate tailored product suggestions. This creates a highly personalized online shopping journey for your customers. Websites using personalized recommendations see 11% higher average order value (AOV) than those that don't.
Virtual Shopping Assistants – The Future of Online Retail
Apart from enhancing online shopping through personalization, AI tools and technology also help improve other areas of the online buying process like fraud detection and virtual assistance.
Fraudulent activities pose significant threats to both business owners and their customers. Luckily, through the power of AI, solutions have been developed specifically to detect unusual activity patterns within vast amounts of transactional data, thereby helping protect against fraud. Companies like Sift provide AI-driven solutions that can detect and prevent fraudulent activities in real-time, reducing losses and maintaining customer trust.
Virtual shopping assistants powered by artificial intelligence are also shaping the future of online retail. These virtual assistants help customers navigate ecommerce websites more effectively. They can answer questions and guide users to the products they're looking for. They're even equipped to handle complex queries, offering personalized product recommendations based on a user's browsing history and preferences.
With solutions like Mulberry's product protection, a dynamic pricing model is used to provide real-time product protection offers unique to each product on your ecommerce website. If your business sells warrantable products, the Mulberry AI-powered solution will deliver product protection offers for each of your products to your customers.
Mulberry's AI-driven classification engine identifies eligible products in real-time, eliminating the need to pre-map SKUs to protection plans, allowing for quick launches and sustainable maintenance. You can also offer an unlimited product protection solution whereby every eligible product purchased by your customers will be covered by a single product protection plan. If you want a simple way to drive incremental revenue that requires little to no work from your team, get in touch with our team about how you can integrate Mulberry product protection offers.