E-commerce | Advantages of a personalized Offer
Using Artificial Intelligence for personalized offers and purchase recommendations is the future of E-commerce. Data collected from over 150 American online shopping sites, which was processed by Salesforce, leaves no doubt that AI allows you to know your customers better and understand their buying habits, giving both parties a number of advantages. Let’s look at this in detail.
What is personalization in online shopping?
Personalization in marketing and e-commerce refers to the techniques used to build the message for your customer and therefore tailor specific purchase recommendations. To maximize this activity, Artificial Intelligence tools allow you to analyze data and help you understand the user’s behavior and thus make the process automated.
The effectivity of purchase recommendation based on Artificial Intelligence
Below are the main trends, results and reference values on customization in online shopping [Source: Salesforce “Personalization in shopping”].
Thanks to AI and data suggestions, there is an Increase in turnover
Visits from automatic suggestion clicks are reduced to 7% but generate 24% of orders and 26% of e-commerce revenues.
A significant increase in buyer spending thanks to customization
Studies show that customers take advantage of the purchase recommendations. On average, their spending is 5 times what it would be without receiving personalized messages.
Customization and site search: a winning combination
The conversion rate is 3.7 times higher for those who click on a purchase recommendation, in addition to using the site’s internal search engine.
Longer time on site for those who click on personalized messages
A buyer stays on the site for an average of 12.9 minutes when they click on purchase suggestions, compared to only 2.9 minutes for those who do not interact.
More site visits for those who click on purchase suggestions
In addition, users who have clicked on a suggestion tip are almost twice as likely to return to the e-commerce site.
Buying suggestions promote E-commerce sales
Approximately one-quarter of the products purchased by users who have interacted with the suggestions correspond to the product.
How to implement AI customization?
Personalizing the customer’s experience started some time ago with Amazon in 1998. Today, selling traditional goods and services online is a common practice, and companies such as Netflix and Spotify have developed new, detailed concepts of e-commerce, giving life to unprecedented and innovative forms of business.
So, how should we go about implementing Artificial Intelligence to help generate more business? The first step is to understand the best solution that supports your needs. Salesforce Commerce Cloud and Marketing Cloud Einstein are available and do just that.
Stay tuned for more information on the best practices for personalizing online shopping.