Artificial intelligence and e-commerce are two relatively new concepts that emerged with the evolution of the internet. As technology began to reshape the world into a global village, we saw a rapid transformation in the corporate world. New business ideas emerged as communities became more connected, resulting in new and innovative shopping methods.
The start of the 21st century brought massive changes in consumer behaviors and business practices. Today, customers don’t want to visit the markets but prefer buying things online from their homes or office. Hence, famous brands now track consumer preferences from social media and SERPs and run digital ads. For even better results, companies have now started integrating AI into ecommerce marketing, resulting in more accuracy, relevance, and higher conversion rates.
So, how ecommerce marketing looks like in the era of AI disruption? How can brands leverage AI to stay ahead of their competitors? Let’s answer these questions in this article.
What is Ecommerce Marketing?
Before understanding ecommerce marketing, let us first look at the connect Ecommerce. It refers to the processing of selling products or services online through digital platforms. Buyers can visit different ecommerce sites or apps, explore various products in various categories, and order their favorite brands online. The company delivers the order within a few days and collects the cash on delivery or when the order is placed.
Sellers try different methods to expand their reach and increase their online sales. This is where ecommerce marketing becomes crucial. It is a set of strategies to promote products or services online, target potential customers, and convert them into buyers.
To get the most out of ecommerce marketing, brands use multiple digital channels, including search engines, email marketing, Google ads, and social media. Besides, maintaining a fully interactive and engaging ecommerce website is also essential to engage potential buyers and influence their buying decisions.
The ultimate goal of ecommerce marketing is to attract visitors and convert them into long-term customers. However, companies must target the right consumers by fully understanding their preferences and buying choices.
Artificial Intelligence, The Game Changer
Artificial intelligence is currently the most discussed and researched technology today. A technology that experts once considered futuristic is now a reality as we progress into the era of AI disruption. Businesses have now realized that AI adoption is no longer a choice; succeeding in this tech-crazed climate is necessary.
Over the years, we have seen rapid technological advancements in artificial intelligence. In ecommerce marketing, AI can be used to deliver personalized customer experiences and make accurate future predictions. AI-powered tools are trained on datasets or information collected from different sources.
For instance, a clothing brand can collect data about consumer demographics, buying preferences, and personal choices. Eventually, that data can be used to target customers with inclinations to the respective brand. If you search for light-colored plain T-shirts in medium size, the system will use this data to show you similar ads in the future. This way, the clothing brand will encourage you to visit their store and make a purchase.
Key Benefits of AI in Ecommerce Marketing
Let’s find out how AI tools are transforming ecommerce marketing and helping brands increase their online sales:
1. Personalized Customer Journey
In today’s highly competitive ecommerce industry, only those brands succeed that create personalized customer journeys. Research shows that nearly 91% of buyers prefer brands that offer customized customer lifecycle management. Besides, personalization shows a company takes care of its clients and better understands their needs.
AI tools should be integrated into ecommerce marketing to make each interaction more purposeful yet subtle. AI algorithms can analyze customer data and give marketers valuable insights about individual preferences. Managers can use these insights to understand consumer behavior better and send tailored marketing messages and discount offers.
As a result, enhanced personalization improves customer satisfaction significantly and drives conversions.
2. Advanced Product Recommendations
Imagine getting bored at home on the weekend and searching for some entertaining science fiction movie. Suddenly, you see an ad from an online streaming platform like Netflix showing the release of your favorite movie. What will you do? You will instantly buy the subscription to watch that movie.
This is how advanced product recommendation works. It offers targeted product recommendations meeting customers’ preferences to convert leads and increase sales. Since AI algorithms can better understand consumer behaviors from purchase history, they can help you generate accurate and more relevant product recommendations.
The introduction of big data analytics in AI has proven to be a game changer for ecommerce marketing. Today, online shoppers can recommend the most relevant products or services based on previous searches, browsing history, special events, etc. The approach leads to improved cross-selling and upselling opportunities, resulting in better average order values.
3. Churn Prediction
Old customer retention is more crucial than new customer acquisition. According to an estimate, converting a visitor into a new customer costs 23 times more than retaining the older one. Therefore, ecommerce companies must minimize customer churn and take a proactive approach to build a loyal consumer base.
Artificial intelligence is the best and most effective technology to reduce customer churn. Ecommerce marketing companies can use AI tools to sift through consumer information, analyze patterns, and identify which users are more likely to leave. Besides, AI algorithms can also help marketers enlist key factors affecting buyers’ behavior and encourage them to try different brands.
As a result, by having a continuous overview of customer interactions, businesses can devise long-term strategies to strengthen customer relationships. Advanced AI tools can be extremely useful in making data-driven decisions to increase consumer retention and achieve sustainability.
4. Fake Reviews Removal
In the ecommerce industry, the reliability of online identity is critical. Over 99% of online customers read product reviews before making a purchase. However, some spammers try to cheat their customers by posting fake reviews that negatively affect their brand reputation.
Artificial intelligence can be the best solution to track and remove fake reviews and prevent online brands from misleading customers. Several ecommerce marketing companies leverage AI to remove fake reviews where bots falsely endorse specific products or services. With this practice, ecommerce brands can win the trust of their customers and establish long-term relationships.
AI algorithms can also identify patterns and anomalies to flag suspicious or spam reviews. By removing duplicate, AI-generated, or bogus feedback, AI ensures customers buy a product or service by reading only authentic and trustworthy reviews.
Conclusion
Recent advancements in artificial intelligence and machine learning have opened the door to remarkable opportunities. Businesses from every sector now invest in AI-powered systems to improve their performance and achieve corporate excellence.
Like every sector, ecommerce is also gradually moving towards AI to enhance consumer experiences and generate more leads. Integrating AI into ecommerce marketing allows brands to optimize conversion through personalized buyer journeys and advanced product recommendations. Besides, companies can leverage AI to enhance customer retention through churn prediction and remove fake reviews to win buyers’ trust.
Eventually, AI delivers impeccable results regarding sales growth, consumer loyalty, and operational efficiency.