AI in e-commerce and its benefits
Artificial Intelligence (AI) is being leveraged in various ways by companies to better understand the way their customers do business. In today’s world of new marketing strategies, with help of new online tools, more and more innovative ideas are being tested in the e-commerce space. According to McKinsey & Company’s latest report, AI and personalization are a top priority, however only 15% say they’ve fully implemented AI or personalization across channels. When implemented, the report showed a 10-15% increase in revenue and retention.
Increase targeted marketing and advertising
By analyzing your data from purchase history and other customer experiences, you can narrow in on what customers actually want and produce messages which resonate well.
Increased your customer retention for e-commerce
Delivering targeted marketing and advertising messages personalized for their customers can increase retention. McKinsey omni-channel personalization research indicated there’s a 10% or more in lift for retention from personalization strategies driven by AI.
The report reads: “A critical element of personalization is building better data and insights on customers, an asset that also generates additional value across the value chain. … Our research suggests the ROI for personalization will quickly outpace that of traditional mass marketing.”
Efficient sales process
Automate follow ups for cart abandonment and better time your call to actions or product promotions. Move customers with engaging messaging and chatbots for minor questioning.