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ECOMMERCE
AI-driven strategies for personalisation and recommendation systems in eCommerce : Driving customer engagement and increasing conversion rates “ With AI , there is an even greater opportunity to harness the power of segmentation and personalisation to deliver targeted offers and services , and customised communications ," says Hanson . AI allows businesses to understand a great deal about their customers – everything from the devices a consumer is using , to when they are online , their demography and location . Over time , these insights can be used to power a highly personalised eCommerce experience . “ For example ,” says Hanson , “ a customer may see different products or service offers - with different levels of detail - all depending on the type of device they ’ re using , the day of the week , the time of day , and their current location .”
He points out that another area eCommerce organisations are exploring is how they can use AI to better understand their customers ’ networks , in addition to building their understanding of the customer as an individual . According to Hanson , this insight can enable them to offer valued recommendations and services , such as offerings around pet insurance , family birthdays or anniversary gift ideas .
Hanson adds : “ This approach helps brands build longer term relationships with their customers , moving away from purely transaction based to drive greater loyalty . There is also a further opportunity to maximise campaign spending by identifying who are the influencers in a specific demographic or network group others follow .”
He says that underpinning these AI strategies is a solid data management strategy with the right governance and permissions baked in .
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a 2022 report exploring the impact of AI-enabled eCommerce solutions , InsightAce Analytics found the global value of AI tools for eCommerce brands reached US $ 3.71bn by 2021 . The report also estimated the industry will approach a value of US $ 16.8bn by 2030 , growing at a promising rate of 15.7 % CAGR in the next 8 years .
84 August 2023