Generative AI in E-commerce: 6 Top Use Cases
Generative AI is the most significant feature of online shopping since it’s free shipping for two days. It has transformed everything from the online purchasing experience to back-office processes and everything in between. Generative AI for e-commerce not only makes operations and marketing more efficient, but it can also bring the experience in stores online in ways that provide an added benefit to the customers.
70 percent 70% of the US population is online shopping. In the world, there will be 2.14 billion people who shop online by 2023. While the ease and convenience of shopping at home every day of the year is fueling the growth of online shopping, consumers still prefer the personal, interactive experience they can get in stores.
Retail Leaders have a few key ways to Utilize Generative AI in e-commerce.
Let’s take a look at some of the ways that top brands utilize generative AI to get to understand their customers better and deliver the engaging digital customer experience that customers need.
1. AI Chatbots
The business hours don’t apply to online stores. Ineffective responses to customers could result in a loss of sales. Unavailability may be perceived by customers as a lack of interest in the company. The speed of response is as crucial as availability. Based on HubSpot’s research, 90 percent of consumers consider the speed of response as crucial or essential in the event of questions about customer service.
Chatbots, especially AI chatbots, can help companies selling on e-commerce connect with their customers in a snap, no matter what time of the day or time of year it is. The three kinds of chatbots:
- AI chatbots use natural language processing, which makes them appear more real, increasing the online shopping customer experience, and they are more human and less robotic.
- Chatbots with rules-based algorithms that can respond to predefined questions.
- Hybrid chatbots that combine the two.
Although 24/7 availability is no longer an option to have but rather a necessity for businesses selling online, they must select a chatbot and an e-commerce chatbot strategy that can answer customers’ queries instead of ignoring them. The most effective digital strategies combine people with AI. Therefore, while an AI chatbot can become more useful and sociable as it grows, it isn’t going to substitute human agents; however, it will increase the number of hours spent and your customer’s experience. The interaction between AI and humans should always be one of collaboration, instead of a battle.
2. High-Performing Digital Messaging
Many online retailers do not have the opportunity to engage with their customers on a more personal level. People want to feel as if the companies they shop with know their customers, regardless of the kind of channel or stage of the journey they are on. Additionally, customer preferences change more quickly than ever and often leave brands with outdated messages that are no longer effective.
To be able to compete for the attention of customers who are digitally savvy, brands must constantly encourage customers to take action at any moment and draw their attention to emotions. The ability to inspire isn’t achieved by using digital marketing content or content that “sounds good” and is in line with the brand’s values. That’s what you get. What they need is the message to be able to increase results (i.e., conversions, sales, email opens, etc.). According to a new Persado research study of more than 250 marketers from the retail sector, even the most experienced digital marketers select the most effective messaging about 1/3 of the time.
This is the point where generative AI comes in. Although the majority of generative AI tools can easily create content that is in line with the guidelines of the brand and is a natural conversation, Persado Motivation AI can take AI-generated messages one step further. Motivation AI is a category of generative AI specifically designed for the e-commerce and marketing departments of enterprises that can provide brands with effectiveness and efficiency. Motivation AI is based on using more than 1.5 billion interactions with customers from 150 million US customers. The data used is used to generate AI-generated digital marketing messages that encourage customers to purchase at specific times—including when they shop online.
As you can see in the actual example below, customers bought more sweaters at a lower price because of the AI-driven, performance-driven messaging.
3. Creation of Images and Content
Shoppers online cannot physically feel or see products. Therefore, images and videos are essential to promote items. Brands require high-quality images for each product. With the aid of generative AI, companies can sell their products more quickly since they do not have to wait for photographers or studios to be on hand to rapidly create or alter images of products at a scale. AI-generated backgrounds save e-commerce staff time and money spent on setting dressing and hunting for locations.
Image tools that generate AI can also assist brands in mocking up images, brainstorming visual concepts and editing content created by users.
4. No-Code Report
The leaders of e-commerce can improve the customer experience and know what is important to their customers by using generative AI to produce comprehensive reports. These insightful insights provide details about customer preferences, behavior, as well as sales. By using them, companies can easily analyze their business performance and make data-driven decisions based on what clients are saying to them. This is all without the need for coding.
Generative AI is also used to analyze patterns in search to improve SEO and discover content consumers are looking for. This information can help e-commerce companies improve their blog posts and product descriptions to increase their rankings on search engines.
5. Design of Packaging and Product
Generative AI holds the potential to transform designs for packaging as well as fashion. In the near future, brands will not just be able to bring clothes and accessories to market more quickly thanks to generative AI; they can also utilize generative AI to blend various aspects of their packaging and product designs that are well-liked by customers. This could result in higher-quality, more innovative designs and enhance the experience for customers.
6. Virtual try-on
In-store shoppers can tell whether a piece of clothing is suitable for the person they are (or not) when they put it in the fitting rooms. Clothing is among the most searched-for categories of shopping; however, it can be a struggle for online shoppers to figure out which clothes will suit their needs. This could lead to many returns and disappointed customers.
Google’s online try-on tool utilizes generative AI to bring the fitting room experience online, helping shoppers feel more confident about their clothes purchases.
Virtual try-on for clothes shows the customers who shop online how clothes appear on various models with different sizes and color tones. Google’s generative AI model takes a photograph of a garment and displays how it drapes, folds, or stretches. It also shows how it would cling, stretch or form wrinkles. The Generative AI function is accessible in online stores like Anthropologie, Everlane, H&M, and LOFT. Customers can use the virtual try-on feature by pressing their “Try On” badge on Search and then selecting the model that best represents their needs.
Similar to a store assistant, virtual try-ons can help customers find similar items in a variety of prices and colors. However, consumers aren’t limited to one particular retailer. The software makes use of machine learning and the latest technology to recommend possible options that are available across the web.
Generative AI does not just allow companies to better understand their customers based on their behavior, habits and preferences, but also provides marketing and e-commerce teams the tools needed to interact with customers on the scale they need. The more e-commerce sales rise, the more a company can profit from generative AI in e-commerce.
For more information on the ways Persado Dynamic Motivation utilizes generative AI to create targeted messages for better retention and loyalty as well as to boost conversion rates while decreasing abandonment in the shopping cart on the internet, request a risk-free trial.
