Advice • Design • Digital
AI for E-commerce – How it Helps Increase Sales
By Yellow Circle
By Yellow Circle
In our previous article, we explored the benefits of AI for business owners. In this article, we’re focusing specifically on e-commerce websites and how AI can increase sales, increase average order value and provide a more personalised customer experience.
Gaining a competitive edge in e-commerce requires more than just showcasing products. It’s about delivering a personalised shopping experience that meets and exceeds customer expectations. It is where AI, specifically in the form of intelligent upselling, becomes a game-changer.
Gaining a competitive edge in e-commerce requires more than just showcasing products. It’s about delivering a personalised shopping experience that meets and exceeds customer expectations. It is where AI, specifically in the form of intelligent upselling, becomes a game-changer.
We’ll follow a typical customer journey through an e-commerce site and explain how AI helps drive sales and increase customer engagement.
A potential customer lands on your e-commerce website, browsing various product categories.
The AI system diligently tracks the user’s behaviour, taking note of the pages visited, products viewed, and any items added to the shopping basket. This data serves as the foundation for a personalised recommendation strategy.
The user adds a pair of running shoes to their basket.
Leveraging machine learning algorithms, the AI analyses the user’s historical data and compares it to patterns from similar shoppers. It then suggests complementary items that align with the user’s interests and preferences. For instance, the system might recommend moisture-wicking socks, a sports armband, or a fitness tracker.
The user proceeds to the checkout page.
The AI dynamically updates product recommendations based on user selections in real-time. It ensures the suggestions are relevant and capitalise on the user’s intent to purchase.
The user has items in their cart but hesitates to purchase.
The AI, understanding the user’s behaviour, can trigger personalised offers or discounts to incentivise the user to finalise the transaction. It could be a limited-time discount on the total purchase, a buy-one-get-one-free offer, or free shipping for orders above a specific value.
The user completes the purchase.
The AI continues its role even after the sale. It analyses the user’s recent purchase and tailors post-purchase communications. It could include recommending related products, soliciting feedback, or providing exclusive offers for future purchases.
AI can contribute to larger transaction sizes by intelligently suggesting additional products. Customers are likelier to add complementary items to their cart when the recommendations are relevant and personalised.
Personalised shopping experiences create a sense of individual attention, making customers feel valued. When shoppers find products that align with their preferences, it fosters satisfaction and loyalty.
The AI system continually gathers and analyses data, giving your business valuable insights into customer preferences and trends. This data can inform strategic decisions, from inventory management to marketing campaigns.
Implementing AI-powered upselling sets your e-commerce site apart. It positions your business as forward-thinking and dedicated to providing a modern, user-centric experience.
AI’s role in e-commerce upselling goes beyond mere suggestions, crafting a tailored journey for each user, enhancing the overall shopping experience, and ultimately driving your sales to new heights.