It is challenging for e-commerce businesses to optimise the conversion rates, especially if it’s done manually. Today, the world around us has completely become data-driven and it has become more than significant for e-commerce businesses to capture contextual and behavioural data than it has ever been. However, it is almost impossible to analyze and extract insights from the gathered data without technology.
Fortunately, smart technologies like artificial intelligence (AI) and machine learning have come to the rescue. They are making things easier for businesses. According to a study, 84% of business-to-customer (B2C) marketing organizations are implementing or expanding AI in 2018.
Optimisation of conversion rates is one of the key areas where businesses are implementing AI. This technology not only lifts the burden of investing hundreds of hours analyzing data but also takes visitors data from websites and makes informed predictions. These informed predictions about customer preferences help to drive better business outcomes.
While businesses are concerned about conversions, we put together essential aspects that help in optimising conversion rates using artificial intelligence.
Best Practices to Optimise Conversion Rates Using AI:
Power the Website’s Search with AI
Search option on e-commerce websites is the key interaction point for visitors. It can make or break the shopping experience, as the visitors tend to leave if search results are not as desired or relevant to what they’re looking for. Also, the visitors who use site search are more likely to buy than those using standard navigation.
As per a research by WebLinc, the on-site searchers are 216% more likely to convert than regular users. Additionally, if the visitors find their required things quickly and easily, they are likely to buy 21% more products on average.
If you have not paid much attention to your website’s search option, then it’s probably time to pay attention. A lot of things like customer experience, ability to acquire new customers and more, are dependent on the intelligent site search option.
There is no doubt that visitors expect your website to provide a better experience than the other sites, however, meeting their expectations is your sole responsibility.
An AI-powered site search can suggest relevant queries and popular search results. AI and machine learning can analyze a number of parameters about the visitor, including location, interests, time, recent and previous searches and purchases. Based on which it can suggest recommended products to the customers.
• AI-powered Personalized Product Recommendations
More than 31% of the revenues of e-commerce business are generated using personalized product recommendations, according to a research by Barilliance. The visitors like to have relevant recommendations for products.
For example, Amazon shows “what other customers also bought” as a recommendation under the product a visitor is currently exploring. AI not only helps in offering customized solutions to the customers but it does it quite effectively. It can analyze the customer behaviour and the types of products a visitor is looking for, which can enhance conversion rates.
Amazon has been leveraging AI technology for years now. The company generates around 35% of its e-commerce revenue through personalized and dynamic product recommendations.
Most of the business websites have a ‘chat now’ box installed on their website for improved customer experience. Businesses need to assign a dedicated person for the live chat to answer the queries of customers. They end up answering the same set of questions numerous times in a day. It’s an utter waste of a human brain, isn’t?
An AI-powered chatbot can eliminate the need of a person by self-answering the queries. The chatbots are so effective that users don’t even realize that they are not talking to a person. The AI-powered chatbots are becoming a key tool for e-commerce businesses, making real-time chatting better, more intelligent and personalized.
Furthermore, the chatbots can also automate the order processes that can help save both, time as well as money. Juniper Research reveals that chatbots will save over $8 billion per year by 2022.
And since chatbots do not need breaks or have to take lunch or refreshments during working hours, they can support your business 24×7 with the same level of efficiency all day long. They can collect data, track behaviour, make recommendations and answer queries on the go. Thereby, helping e-commerce sites increase the conversion rates.
A lot of opportunities exist in the data generated by the websites. E-commerce sites can use machine learning to design algorithms for mining large data sets. These datasets will help in finding patterns of customer behaviour, which can be used as opportunities for growth.
For example, the data can reveal at what time of the day or on which day visitors browse the website. By analyzing the quantity of traffic, e-commerce sites can schedule a campaign like “Weekend sale”, “Christmas sale” etc. at the right time. Further, it can also be found if a campaign works well in a particular region and accordingly, a campaign can be designed.
AI can be applied to these algorithms for identifying patterns with a greater effect. This can help businesses act on insight and achieve better conversion rates on the basis of real-time trends.
Avoid Fake Reviews Using AI
Fake reviews have become a big problem for the e-commerce industry, not only they affect the reputation of a brand but directly impact the visitors’ buying decision. According to Dimensional Research, 90% of shoppers said that positive reviews about a product online influence their decision of buying while 86% of shoppers believe that negative reviews decrease the chances of a user completing the purchase.
But there are many users, bots or competitors who try to publish fake reviews to affect the decisions of customers on an e-commerce site. AI can be used to address this problem by filtering the reviews. Thus, only verified and helpful reviews will be published. Amazon uses this technology to allow only verified purchase reviews.
Artificial intelligence has the potential to optimise e-commerce platforms. It can help by providing relevant recommendations about services and products in an effective way that can drive the conversion rates.
Other than optimising the conversion rates, AI can also influence transactions, customer retention, customer satisfaction and more.
These are few of the best practices to follow for e-commerce sites to leverage AI and make the maximum out of it. If you have any more practices to add, you are welcome in the comments section.
Vaibhav Shah is the Founder and CEO of Techuz InfoWeb, a leading web development company delivering web and mobile app solutions using latest technology stack. Being an engineer, he has the vision to enhance user experience and create competitive products for their clientele.