In the digital world, customers have come to expect exceptional interactions with brands. Artificial intelligence is a key driver behind these changing expectations and is, therefore, the magic ingredient that allows ecommerce brands to meet and exceed them.
However, 93% of organisations believe that their current technology is holding them back from ecommerce success. While there is a clear need to adopt AI in customer interactions, it can be difficult to know the best areas to invest in.
Ecommerce brands should be leveraging AI in four transformative areas to build their brand: personalisation, competitor analysis, content optimisation and supply chain management. By enhancing these elements with modern technologies, brands will elevate customer interactions, boost satisfaction and remain competitive.
Personalisation at the core
Customers are seeking shopping experiences which feel tailor-made just for them. AI brings this to ecommerce by analysing vast amounts of customer data and generating insights that enable brands to offer customised recommendations and promotions. The impact of this strategy is clear with Amazon attributing 35% of its revenue to its AI-powered recommendation engine.
Beyond driving sales, personalisation converts casual browsers into loyal advocates as 91% of consumers prefer shopping where experiences are personalised. Perfecting personalisation with AI can increase revenue by up to 300%, improve conversions by 150% and raise average order values by 50%.
Outpacing the competition
Ecommerce is a crowded market segment, so brands need to stay a step ahead of the competition. AI-augmented competitor analysis uncovers trends around keywords and SEO rankings which allow brands to refine their own tactics and retain prominent digital shelf positions for maximum visibility. When combined with live customer journeys and search data, brands can quickly adapt their strategy to outpace rival products.
AI-powered tools can also help brands identify unauthorised marketplace sellers distributing their products. These sellers create pricing and image inconsistencies that erode brand trust. This was a challenge that Yogi Tea faced, but since implementing technology that analyses data and monitors for compliance, the brand has gained control of 90% of its products sold on Amazon and the majority of listings for the keyword ‘Yogi Tea’.
Data-driven content optimisation
AI is a powerful ally for brands promoting their products with copy and images that resonate strongly with target audiences. Generative AI continuously refines product listings by analysing copy and image archetypes that are driving conversions and suggesting improvements considering specific demographics. By handing data analysis jobs to AI, brand teams can focus their efforts on creativity and strategy to foster stronger audience connections.
Nestle, for example, uses generative AI to create product briefs quickly. It used to take a team of four a week of deep research to create what can now be created at the touch of a button, allowing the team to focus on rapid content updates and testing for constant optimisation instead.
Streamlined supply chain management
A smooth supply chain is an essential component in delivering an outstanding customer experience. AI’s forecasting skills are a game-changer, and the AI supply chain market’s growth rate of 28.2% CAGR demonstrates that more businesses are tapping into this each year.
AI-optimised inventory management prevents stockouts, which avoids customer dissatisfaction with out-of-stock products. It also allows brands to protect their keyword rankings and buy box wins on marketplaces. Prompt delivery, facilitated by an AI-driven logistics strategy, is another driver of customer loyalty. Implementing this will also help streamline business costs, with McKinsey reporting revenue growth of up to 4%, inventory reductions of up to 20% and cost reductions of up to 10% as a result of autonomous supply chains.
Committing to innovation
AI integration showcases brands’ dedication to innovation and cultivates lasting relationships with customers and industry partners. This commitment not only improves market share and reputation but also meets consumers’ expectations for modern, efficient interactions.
In a world where customer experience is paramount, there is a clear choice: evolve with AI or risk obsolescence. Brands that strategically adapt give themselves a significant competitive advantage as they transform customer interactions, exceed expectations and watch success soar.