As a forward-thinking eCommerce brand owner, you know that staying ahead of the curve requires more than great products or services. What matters the most is your ability to engage customers and retain them over time. With generative AI reshaping digital marketing strategies, it’s time to incorporate this revolutionary technology to boost engagement.
In this guide, we have comprehensively discussed effective strategies to use generative AI in ecommerce. Find out how eCommerce brands can drive sales by enhancing customer interaction and building brand loyalty using these powerful tools. With these practical insights, eCommerce business owners can transform their virtual stores to new heights.
Generative AI in Ecommerce Statistics Every Brand Owner Should Know
Before discussing how to use AI in ecommerce, let’s have a look at these figures. These statistics speak tons about the potential that AI and ecommerce have in store.
- By 2032, generative AI in eCommerce is likely to hit the $2.1 billion mark, with an impressive annual growth rate projected at 14.90%.
- Virtual retailers using chatbots to enhance customer engagement boast a 40% CTR and an 85% open rate.
- Around 73% of marketers are already using generative AI tools, including chatbots.
- As much as 80% of eCommerce and retail businesses are either using AI or planning to use the technology in future.
- With personalized marketing, AI growth ecommerce in terms of customer retention stands between 10% and 15%.
These numbers clearly define the compelling benefits of AI in ecommerce. With generative AI ushering a new wave of innovation and productivity in the virtual retail space, it’s time for eCommerce owners to transform user engagement.
Best Ways for Virtual Retailers to Use Generative AI in eCommerce
Generative AI is known for its amazing ability to evaluate massive volumes of data and provide customized output as desired. In the eCommerce industry, reputed virtual retailers like Ubuy have already incorporated generative AI to foster better user engagement. From providing personalized recommendations based on purchase history to optimizing pricing strategies, the benefits of AI in ecommerce are massive!
Let’s take a look at these five strategies to use generative AI in ecommerce and enhance user engagement.
- Enhance Search Experience on eCommerce Platforms
The search experience of customers on eCommerce platforms significantly defines their shopping journey. Generative AI, when used in search engines with virtual retail platforms, generates personalized search results based on user intent, historical data, and context.
Image search
Successful eCommerce brands have already incorporated generative AI to enhance product image search. These tools seamlessly interpret visual content as they are backed by advanced algorithms. Thus, users can search for related to similar items by uploading product images for AI to scan.
Easier data processing
The use of generative AI tools on eCommerce platforms enables brands to speed up the data-collection process. Sophisticated search engines come with cognitive abilities that work on machine learning algorithms. Thus, they can understand and organize information sourced from multiple sources.
The manual process of locating, reading, and analyzing data used to be a time-intensive ordeal. This process has been automated by generative AI. Thanks to cognitive search abilities, eCommerce businesses can quickly extract relevant information from unstructured formats. Naturally, the easy availability of processed data enables eCommerce brands to offer customized recommendations to users, thereby enhancing engagement.
- Streamlined Marketing Strategies
The use of generative AI in ecommerce is particularly evident in the sales and marketing departments of leading virtual retail brands. Hyper-personalized text-based communications in marketing clicks for eCommerce brands. This is where the analytical powers of generative AI come in handy.
Analyzing marketing data
Generative AI is capable of analyzing market trends, historical data, and customer behavior. In the process, these powerful tools identify correlations and patterns, helping marketers optimize their strategies.
Streamlining campaigns
Some of the generative AI use cases reveal that online brands are leveraging this innovative technology to detect optimal time for product launches and promotional campaigns. An organized approach to align their marketing efforts to peak periods of customer activities significantly streamlines campaigns. Research reveals that around 10% of global functional spending will be attributed to generative AI, amounting to $463 billion.
Intelligent A/B testing
One of the other benefits of AI in ecommerce is its role in enhancing A/B testing. Backed by AI, A/B testing identifies the most striking variations that empower marketers to make data-oriented decisions. Accordingly, they can tweak their marketing strategies.
- Ecommerce Content Creation
As an eCommerce brand owner, you know how crucial content creation and SEO prove to be for organically ranking your products? Ecommerce content creation is one of the most common generative AI use cases.
Engaging content generation
Thanks to generative AI tools, eCommerce brands can develop highly personalized and engaging content tailored to specific audiences. These tools significantly speed up the process of content creation, including blogs, email newsletters, social media posts, and product descriptions.
As much as 90% of marketers acknowledge the benefits of AI for content creation. Advanced generative AI models are capable of incorporating keywords while developing content for eCommerce marketing.
SEO-friendly content
Generative AI is used to produce SEO-friendly meta tags, meta descriptions, and product descriptions. This significantly boosts the visibility of your website on SERPs. According to 81.5% of SEO experts, their SEO strategies have already been impacted by generative AI.
Offering a personalized customer experience, generative AI significantly elevates marketing initiatives and optimizes inventory management.
- Automated data analytics
One of the best use cases of generative AI in ecommerce is its role in creating interactive data visualizations based on analytics. AI algorithms accurately understand patterns and relationships within large databases. Accordingly, they generate insightful charts, dashboards, and charts. As a result, eCommerce brands gain a deeper understanding of their data. Marketing heads can interpret complex information in a simpler form through visuals.
Categorizing and labelling data
Do you know that data scientists spend 51% of their time in mundane tasks like cleaning, organizing, and labelling data? Generative AI automates this data-cleaning process, helping analysts prepare datasets for analysis much faster.
Creating text summaries
Data scientists and analysts working with eCommerce brands can generate concise text summarises from large volumes of data using generative AI. This significantly benefits decision-makers and executives who look for quick overviews of important trends and metrics without wasting time on detailed reports.
- Streamlining eCommerce Operations
There’s no denying that you struggle with stockouts, overstocking, or inventory bottlenecks from time to time. These are crucial eCommerce operations that generative AI can streamline. As much as 34% of small businesses struggle with their inventory management. Thanks to the use of generative AI in ecommerce, virtual retailers can optimize their inventory management. With real-time insights, they can maintain optimal stocks in different warehouses.
Predicting demand
Based on historical data and market trends, generative AI is capable of predicting demand of specific goods during peak hours. Besides, predictive demand analysis based on AI helps eCommerce brands with accurate production planning, where they can effectively allocate their resources.
Ensuring product availability
Stock-outs not only frustrate your buyers, but they also prove to be highly unproductive to your business. Thanks to the benefits of AI in ecommerce, particularly inventory management, virtual retailers can ensure the availability of products, revamping their inventories based on AI recommendations.
Wrapping Up
With competition raging high, knowing how to use AI in ecommerce can significantly boost your bottom line. Successful virtual retail brands remain at the top of innovation, embracing generative AI tools to enhance customer engagement.
While most brands have been using generative AI in ecommerce for content production, it’s time to think beyond text and visual content. Streamline your overall marketing strategy, incorporate AI-backed chatbots, and refine search results with intelligent engines in your online retail store. A comprehensive approach to harnessing the benefits of AI in eCommerce can work wonders!