AI-Driven Personalisation: The Secret Sauce for Boosting Sales in 2024

Introduction:

Who would have imagined in 2020 that we could read our customer’s minds. Today as we are in the year 2024, there have been some intense changes in the e-commerce sector. The use of AI (artificial intelligence) has sharply increased, enabling online merchants to offer a hyper-personalised experience that borders on magic. But what is the proper way for you, as a business owner, to channel AI’s power and use it as a tool to enhance your selling? Could you implement some practical strategies using AI-driven personalization to improve your e-commerce practices?

1. Why AI-powered personalization matters more than ever.

AI-based personalisation has become a crucial feature in the business field, enabling businesses to create more customer-centric and tailored experiences. By analysing browsing history, past purchasing records, and even the duration a customer spends on a specific product page, AI can predict which products customers are most likely to purchase. This is not just a trend, but a fact. According to survey results, 71% of customers want companies to provide them with accurate and high-quality personalised interactions.

To cater to the customer needs, you can slowly start by using an AI-based recommendation engine, which will propose matched products. This can ultimately prevent you from overspending on ads and increase your customer’s average order spending.

2. Unlocking the Power of AI: How Recommendation Engines Can Skyrocket Your Sales

Ever noticed that enticing “You May Also Like” section while shopping online? It’s not just a random selection of products – it’s artificial intelligence (AI) working its magic! These clever recommendation engines are the unsung heroes of e-commerce, silently boosting sales and enhancing the shopping experience. Imagine this, A customer just added the latest smartphone to their cart. Suddenly, they’re presented with a perfectly curated selection of must-have accessories – a sleek phone case, a durable tempered glass screen protector, and even a compatible smartwatch. It’s like having a personal shopping assistant who knows exactly what your customer needs before they do!

But here’s the kicker – this simple AI-powered feature can transform your store into a profit-generating powerhouse. We’re talking about a potential 20-30% increase in sales, all from suggesting the right products at the right time. It’s the digital equivalent of “Would you like fries with that?” – but so much smarter!

Ready to harness this AI superpower for your own store? Here’s a pro tip: You don’t need to build it from scratch. Google’s AI recommendations and Shopify’s integrated recommendation engine are fantastic places to start. While implementing these systems might seem overwhelming at first, the payoff is well worth the effort. Remember, you’re not just selling products – you’re creating a personalized shopping experience that keeps customers coming back for more.

3. Dynamic Pricing: A Competitive Edge in a Crowded Market

In a highly competitive market, prices play a crucial role in determining the success or failure of a sale. As for AI-generated dynamic pricing, it is a system that lets you lower or raise the price according to demand or competition in the market in no time. Thus, you can sell at a cheaper price in exchange for decreased demand, and prices will increase when the market is bullish. You can compare it to the concept of a pricing manager, who continuously monitors your competitor’s actions and adjusts prices, accordingly, ensuring the optimality of your profits is always prioritized!

Pro Tip: We strongly recommend using AI-based tools like Prisync and Feedvisor to automate your pricing strategy. In this way, you can be sure that you are competitive all the time without spending 24 hours a day on the Internet pushing the latest news about the market.

4. Chatbots: Your 24/7 Sales Assistant

Customers no longer have to wait for human intervention. With the help of AI-powered chatbots, we can empower our chatbots to not only solve common customer problems, but also to generate personalized proposals tailored to each individual. Thus, the use of these tools not only ensures client satisfaction but also positively impacts sales.

Pro Tip: Services like Drift or ChatGPT can assist you in installing a bot that feels like a human being and conversing naturally. We recommend using it to suggest products, resolve issues, and guide customers through the checkout process at any time of the day.

5. Hyper-personalized email campaigns: reaching the right customer at the right time

AI is not just a tool for your website; it can also serve as a unique weapon for your email marketing strategy. Mass e-mails like these are no longer the norm. By leveraging AI, you can scrutinise the customer’s details, allowing you to implement a hyper-personalised strategy that tailors a product to their specific needs and values. For instance, if a client consistently purchases skincare products, you could offer him exclusive discounts on his preferred brands.

Pro Tip: Use the AI-powered segmentation tool of Mailchimp and Klaviyo’s predictive analytics to target specific customer segments by creating email campaigns that can potentially convert. Research has revealed that personally tailored emails outperformed common or sole emails by 600%.

Current Trends in AI-Powered E-Commerce:

• Voice Commerce Integration: With the rapid growth of voice commerce solutions like Alexa and Google Home, the use of voice commerce is becoming increasingly prevalent. AI-assisted voice search supports brands in guiding customers to their products with more flexibility, notably those users who dislike physical actions.
• Businesses can create virtual rentals of items like accessories, and furniture when they combine Augmented Reality (AR) and AI. This benefits the buyer by enabling them to make more informed decisions, reduce the number of returns, and ultimately maintain customer satisfaction.
• Predictive Analytics in Inventory Management: By forecasting patterns and trends, AI can assist companies in managing their inventory more efficiently. Such calculations diminish the chance of stockouts as well as overstocking, which in turn results in more satisfied customers and lesser expenses.

Conclusion:

E-commerce is revolutionizing at a fast pace, and AI-powered personalization is an absolute must. By choosing these tools, you can build a shopping experience that is unique and attractive, as well as a perfect fit for each customer. Be aware that this doesn’t just mean replacing people with machines; rather, it’s addressing the challenge of doing things humans can’t do, allowing you to focus on your primary role as a businessperson.

Are you prepared to establish your online business in the next phase? Check how buildmystore.io can improve your e-commerce strategy. Let’s make a shopping experience so engaging that your customers want to visit again and again!