Shopify Ecosystem

How AI Can Improve Conversion Rates In Ecommerce

how-ai-can-improve-conversion-rates-in-ecommerce

Artificial Intelligence is shaping the way eCommerce works. Machine learning monitors user behavior in real time, producing logic and formulating algorithms that improve the user experience. As shoppers engage, the AI learns and is able to suggest optimized actions most appropriate to the situation and users.

AI is the perfect fit for eCommerce, as it keeps up to date with what shoppers want. Machine learning is happening constantly without any need for human interference, collecting useful data to improve the UX. Merchants don’t need to test or collect their own data, the AI helps the journey become personal.

The AI tracks shoppers’ patterns all the way through from their initial landing page, through their journey to checkout. Patterns are learned and the merchant gains invaluable insights. Learning and understanding customers is a huge part of the eCommerce journey.

Behavioral psychology is key to decision making, as the more you know, the less room you have for error. If you know what your customers are looking for, you know how to set up new merchandising rules and business objectives based on the information you have.

Asking yourself the following questions are crucial:

  • What kind of customers do you have? What is your niche?
  • What is your target market?
  • How does this market behave as customers?
  • What kind of customers are they?

Until now, you would be on your own to figure out the answers to these questions. Now, AI can help discern what these truths are. This is incredibly valuable information. 

The Benefits

Shoppers’ needs vary from store to store. New shoppers will require more marketing, returning customers may need deeper personalization. Within these categories customers may have different needs depending on what they are looking for. Your store should have different strategies depending on these customer types. Having AI behind your eCommerce strategy eliminates the need for guesswork. 

In such a fast moving industry, this information is crucial in order to know which angles to take, features to use and what your audiences will benefit from. These kinds of analytics can often surprise merchants; the results can provide merchants with insights they never expected. 

If customer segments are a priority, AI can help to create customer profiles depending on marketing strategies. You don’t need to worry about figuring out what the analytics mean; the AI does this work on your behalf. Integrations lead to double the logic, and higher optimization.

It’s important to know the extent of the tools that can be harnessed for your benefit. Analytics can be surprising and a game-changer; no-one should be left behind.

The Ecommerce Ecosystem

The more analytics available to the eCommerce business the more magic can happen. Integrations with other eCommerce companies create this, by connecting two tools and doubling data. Through integrations companies jointly manage information to optimize outcome, increasing the most critical metrics for growth. 

On the backend, these integrations push analytics and numbers enabling segments for certain groups. This information can be relevant to all areas of the site; search, collection pages, filters. The sharing of data gives the companies the choice of how to use it to improve their customer journey.

When You Should Start

AI is a positive tool for an eCommerce business of any size as the tools have the power to grow your business. Social media should be used to spread the word, then as soon as the website has traffic, it’s time to start using AI. As long as there are users, it will gather helpful information. The integration ecosystem will start telling you who your customers are even before you may be fully sure. 

Programs offering AI may have many modules for different areas of the website, but you can start simple. Start running analytics on one area, then you can build upon that. Integrations can help nurture your journey, even as you’re just beginning.

An Optimized Experience

AI in eCommerce increases conversions as it clearly displays what works and what doesn’t. Leveraging AI optimizes every business as it molds an online experience, whilst firmly guiding people to the cart. The AI encompasses the entire journey for the customer, and directs the merchant to invaluable business knowledge.

The ideas in this post are driven by The Link’s interview with Fast Simon’s Chanell Chebuske, which can be found on their blog.

Special thanks to our friends at FastSimon for their insights on this topic.

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