Why use AI in E-commerce?
Online merchants tend to raise three major objections to buying a personalized recommendation module based on Artificial Intelligence:
- It is too early, we currently have other priorities.
- We already have a cross-sell module.
- Artificial Intelligence is too complex.
Fortunately, AI-based personalized recommendation modules are evolving to appeal to more merchants and are not limited to cross-selling.
Therefore, here are five reasons to install a new generation personalized recommendation module:
1) Improve User Experience (UX)
Your customers are increasingly mobile, impatient and volatile and have very personal behaviours. Personalized recommendations allow them to navigate intuitively directly from one product to another. They give them the desire to discover your products. They accompany your customers like a store salesperson who knows them. They create a trust relationship between your brand and your customers.
When your customers come back to your site, they find more easily the articles that fit their tastes and they feel recognized.
Recommendation services well distributed across different pages of your site meet the needs of different online consumer profiles. They help the novice and the demanding to find what he is looking for more easily, allow the frugal to compare similar products, reassure the anxious, and inspire the loafer.
2) Improve the relevance of the recommendations
The relevance and variety of recommendations has a major impact on the recommendations click rate, the purchase of recommended products, and satisfaction of your customers.
Artificial Intelligence algorithms find automatically the product associations that have the most statistical impact on your sales. But not all algorithms are equal. Those of Amazon which use “the wisdom of the crowd” are particularly adapted to all the products of the e-commerce sites. Those with a fast learning speed are more quickly relevant to mid-sized sites.
3) Simplify management of products to recommend
Managing manual recommendations with configuration of product associations can quickly become time-consuming and tedious as your catalogue grows.
The first AI-based personalization offerings were reserved for large sites with large budgets and specialized technical teams to set up the service.
Fortunately, the new generations of personalized recommendations modules specialized for mid-sized sites have been able to simplify the configuration and management of products to recommend and save you a lot of time.
4) Increase your loyalty rate
Customers who have clicked on recommendations value more the experience on your site and are on average twice as loyal.
Loyal customers are more sensitive to your brand, they are more committed and talk about your site to people around them. They increase your traffic and have an average basket 10% higher than other customers.
5) Boost your sales
The impact of a personalized recommendation module on your sales depends on the number of recommendation services you deploy, and the number of products in your catalogue. The average increase in the conversion rate is between 5 and 20%. The contribution of the average basket increases, and the loyalty rate further increases your revenue. That’s how 35% of Amazon’s revenues are generated by their recommendation engine.
To evaluate the interest of personalized recommendations for your site, you have the opportunity to make an appointment with my team by clicking on this link. The phone call will last between fifteen and thirty minutes and it will be a unique opportunity to discuss your current situation, your goals and solutions to put in place to increase your income by simplifying your life.
To buy the module on the Prestashop Marketplace, click here.
Software engineer from Supélec Paris, I worked as a developer, architect and then manager for many years at the Research Center of IBM and then in the Cisco European organization.
Passionate about Artificial Intelligence, I decided in 2015 to create my company MyDreamMatch in order to make personalized recommendations accessible and easy to use by the largest number of web sites.