Are AI Tools About to Power a Revolution in Ecommerce Personalization?

What makes your e-commerce venue so much better than a million readily available alternatives? No matter how extensive your catalog is, shoppers who brave the cold world of online...
Ecommerce personalization as told by Sentient AI - an ecommerce recommendation engine specializing in enhancing the customer experience.

What makes your e-commerce venue so much better than a million readily available alternatives? No matter how extensive your catalog is, shoppers who brave the cold world of online retail crave experiences that let them feel special. In other words, it’s all about whether your ecommerce personalization strategy makes your company worth regular patronage.

Shopping personalization is nothing new, but the field is full of interesting, novel developments. Artificial Intelligence, or AI, has unleashed an earthquake of change that’s shifting the entire e-commerce landscape, and your stance needs to evolve too.

Ecommerce Personalization Explained

Ecommerce personalization is the process of adapting your typical transactional experience to the needs of individual consumers. For instance, if you’ve ever shopped on Amazon or eBay, then you know that these services make recommendations based on your prior viewing history.

Such modifications may be subtle, but they go a long way towards keeping you interested as a consumer and helping you complete transactions that you failed to finalize. The question you should be asking yourself as a business owner is whether these practices are good enough for your brand or if you ought to be doing more.

Why Personalization Matters and the Need for Change

Research from 2013 showed that 59 percent of shoppers felt that personalized digital retail venues made it easier to find interesting products. About 56 percent expressed a greater willingness to return to these sites instead of using alternatives that didn’t make recommendations.

The major problem with personalization is that it’s provides an inadequate experience unless it’s done properly and with the right tools. The internet is full of stories about bad shopping recommendations, and eventually, people get tired of seeing the same limited subset of products over and over again. Unintelligent personalization reflects poorly on your brand, so it’s wise to move towards more informed alternatives.

How Does AI Play a Role?

Effective ecommerce personalization goes deeper than just sending consumers personalized emails or letting them sign up for accounts to save their favorites. AI enables heightened comprehension that you can use to:

  • Present consumers with more enticing recommendations and selections,
  • Show people content organically,
  • Suggest items and deals when shoppers are most likely to be interested,
  • Hone your business model and marketing techniques, and
  • Drive higher conversion rates, increase average order values and improve catalog discovery.

AI Adapts Instead of Remaining Static

Artificial intelligence is a complex science, but some of its core principles are relatively straightforward. One of these concepts is the idea that as problems evolve, you should refine your problem-solving strategies in kind. Although this seems fairly obvious from a normal human perspective, AI takes it to the next level.

A Dramatic Shift in How Businesses Use Computing

Historically, programs were unchanging pieces of code that received data, performed specific tasks using the information and then returned their answers. The difference with AI tools is that after you get the results, you can tell the machine how well it did so that it can tweak its process and improve. This concept of machine learning is fundamentally changing the way ecommerce personalization works.

Consumer behaviors change at blinding speed, and if you think that group-level trends evolve fast, the habits of individuals are even quicker to develop. Adaptive analysis software can make sense of complex user behaviors by tracking multiple kinds of data, such as what people click on, how long they stay on a page or where they hover their mouse pointers. You just have to sit back and reap the rewards of superior understanding.

AI Handles Big Data More Intelligently

AI’s flexibility doesn’t just make it great at tracking shopper behaviors. It also allows you to refine your analytical practices on a continual basis.

As their name implies, Big Data tasks usually incorporate vast quantities of information. Even if you’re only a small startup with a limited user base, the fact that you’re tracking everything from where shoppers click to how far they scroll generates massive repositories of potentially useful data.

AI helps you ensure that you’re actually putting these inputs to use efficiently. In addition to tracking how specific variables relate to business revenues and consumer satisfaction, machine learning software can direct its evolution. This capacity enables intelligent algorithms to focus less on details that might be irrelevant in favor of pursuing the strongest correlations.

You can intervene by telling your algorithms not to pay attention to specific factors, or you can take a hands-off approach and let them evolve. Both are smart ways to gain insights into what makes consumer experiences tick.

AI Systems Scale Across Space, Time and Computing Resources

Traditional business analysis tools require dedicated resources. Unfortunately, your business may not have the funds to open up an entire server farm or start leasing one.

AI is nice because although it’s computationally intensive, it’s composed of smaller, discrete tasks. While the best results come from analyzing large data sets, you don’t have to do it all at once or even in the same place. You can simply integrate the appropriate tracking tools into your current online store.

AI ecommerce add-ons like Sentient Aware send the information they gather back for analysis and retrieve results that let them adapt on-the-fly. Even better, they don’t slow your site down, so you can keep providing the user experiences that your shoppers crave.

AI Speaks the Language of e-Commerce

One of the biggest traditional hurdles to leveraging business intelligence data was the fact that it took so much work. For instance, if you wanted to find out which products consumers liked, you had to set up a feedback panel or pay someone to do so. Whichever option you chose, your moderator would need to collect responses, analyze the results and try to understand what they meant.

AI is far better at its job, and it’s also more economical. Instead of going through convoluted processes that increase overhead and open the gate to potential inaccuracies, machine learning goes straight to the source. These powerful software tools analyze images and people’s interactions with your existing ecommerce platform to paint a more immediate, representative picture of brand positioning and consumer behavior.

AI Is Making Personalization More Personal

Since AI doesn’t have to rely on historical data or popular trends, it promotes a far more intimate shopping experience. For instance, algorithms can learn from individual shoppers to understand them on a personal level instead of making imprecise predictions based on research cohorts.

Ideal consumers are a fantasy. Since they rarely appear in the business world, retailers need to pay close attention to what their actual users are telling them. Those who use AI to accomplish this find it much easier to create repeat business for their brand.

Is Your Ecommerce Personalization Strategy Overdue for an Update?

Your brand can thrive with robust ecommerce personalization. Sentient Aware is easy to deploy, customize and scale. It lets businesses leverage vast amounts of distributed computing power and generates recommendations the instant it starts gathering data.

Why wait to improve your e-commerce personalization features when it’s so easy to get started with advanced AI? Learn more about Sentient Aware here >>

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