You’re probably familiar with this scenario as a consumer. You’re on an eCommerce website you love, you’re viewing a product you’re leaning towards purchasing, and suddenly you see a section labeled “Customers who viewed this item also loved” or “Other items purchased along with this one.” In that section are more products, and suddenly you’re seeing more and more of what you want and like. You may have clicked onto the website in search of one item but suddenly you have 3, 4, 5 in your cart.
What you’re experiencing is an AI-powered product recommendation engine doing exactly what it was intended to do. It’s providing customers with the resources to find the best products suited for them based on their existing interests, and it’s helping the eCommerce match those products to them with minimal time and effort. Let’s take a deep dive into all the benefits of AI-powered product recommendations.
Benefit #1: AI has the ability to analyze
Before AI was involved in the eCommerce economy, there was inaccessible revenue because sellers didn’t know how to recommend products outside of bestsellers that might be of interest to any individual who happened on the site. Yet, AI has the ability to analyze the products, the orders, the behaviors, and all the data simultaneously to match your products to your consumers all while you’re working on other areas of your business. If it notices a link between customers who view certain items and purchase certain items, it knows for next time which items to suggest for a similar buyer. Human brains may not be able to keep up with this, but machine learning definitely can.
Benefit #2: AI helps to personalize the buying experience
Even when AI isn’t doing anything that the human brain potentially couldn’t under longer time constraints, it can still save time and improve the buying experience. For instance, if you’re viewing a shirt on a website that popped up on Facebook, would you know that it came in different colors? Would you know that there are 2 or 3 other, different similar shirts on the site as well? In the same way that Netflix helps you to find a movie or a TV show like the one you just watched, AI-powered product recommendations can correlate your choices to what else is available. In that case, the consumer might end up with an entirely different shirt altogether and love it even more! It’s like having a personal shopping assistant.
Benefit #3: AI has been shown to increase revenue
Want to make mad money? AI-powered product recommendations aren’t a bad place to start! eCommerce companies are quickly learning that you can easily boost your revenue through cross-channel personalization. It just comes down to understanding users’ power and exercising your ability to make contact with them, which ultimately results in increased sales. Ways you can do this include…
- Sending special offers via web applications to customers who have visited your site but haven’t yet made a purchase. This encourages them to come back!
- Improving your customer’s ability to discover what they truly want and need on your website. This is a key role of the AI-powered product recommendations as it provides suggestions for what other items the consumer may like as well.
- Cross-selling on other platforms with personalized emails after a purchase.
- Reducing the likelihood of an abandoned shopping cart with pop-up messages as the buyer leaves the site or messages directly to their email to remind them that they have not completed their check out.
All of these elements in the eCommerce process have only been enhanced with the help of AI. Read more reasons why product recommendations work so well in Recommendation Engine in Engage.
AI-powered product recommendations have helped to enhance the eCommerce experience for both buyers and sellers. It helps to fill in gaps that companies might never be able to fill and unlock revenue previously unknown. Yet, while it’s profitable, it’s also incredibly beneficial to the buyer. They can about other products and services that would be beneficial to them based on the experience of other customers or similarities in what they’ve already identified that they like. Involving AI in eCommerce is beyond useful when it comes to making winning recommendations that keep everyone happy.