Why is AI so heavily in demand when it comes to eCommerce? The answer is simple - AI based algorithms help to deliver a personalised shopping experience to customers. 

Most people are familiar with Amazon’s customised recommendations that display while you shop or checkout on its website; a surefire way they’re increasing AOV. Other popular eCommerce websites like Walmart, eBay have also adopted AI-backed personalised product recommendations in order to improve conversion rates for their businesses.

These algorithms maximise lifetime value and brand recognition, along with reducing customer acquisition costs. Basically, all the benefits that you want from software built eCommerce businesses.

Identical Shopping Experiences

But then why are most eCommerce experiences like this: customers click on ads and land on a product page. A page that is identical for every visitor. Same copy. Same images. Same recommended and related products. 

An identical experience for every shopper! Shoppers who have unique tastes. Meaning if the landing page doesn’t meet shoppers’ needs, they bounce. Leaving the merchant with an increasing acquisition cost.

Contrast that to shopping in a physical store. A shopper can be asked, have they shopped here before? What are they looking for today? Who are they shopping for? From that information an assistant can guide the customer and make tailored recommendations. Keeping shoppers in the store for longer, and increasing the chances they’ll make a purchase.

For too long online shopping has lacked an equivalent experience. In part it’s down to scale. Online shops have far more traffic than physical stores, making it near impossible for staff to talk to every visitor. Secondly it’s down to a lack of real-time insights. When a shopper lands on an eCommerce page, the merchant has little access to real-time information they can use to personalise the visitor’s experience. Conventional analytics software provides only reactive information.

Therefore it is time for merchants to get smarter about their data.

A Real-Time Data Platform

Personalised machine learning algorithms require high resolution, first-party data to work well. Popular eCommerce websites like Walmart, eBay and Amazon realised that conventional analytics and data collection scripts like Google Analytics provide delayed data that is too low resolution - lacking detail. 

These companies have instead invested heavily in building their own data infrastructure. Specifically, that have the ability to access and understand in real-time:

  • The customer’s purchasing history
  • Their interests
  • The channel on which they acquired them
  • Their on-site searches
  • Items added to cart

This data is processed on the fly with machine learning algorithms. Real-time personalisation decisions are made from the results, which are then delivered on their site; a custom experience for each shopper. 

What’s also clever about in-housing analytics and data collection is the ability to quickly learn what works and what doesn’t. If a product recommendation has proven itself successful, it will be automatically learned for future customers who share similar patterns or preferences. This increases brand recognition by providing quality products and first rate services!

However, collecting the necessary information and processing it is neither straightforward nor cheap. These systems take time, expertise and money to create.

Get a Winning Strategy

Therefore, more and more eCommerce companies are turning to solution providers such as Pragmatik AI. And of course, we’re slightly biassed here… But in all seriousness a company like Pragmatik AI has done all of the heavy lifting in setting up data collection and processing infrastructure. 

Our AI tools easily integrate with eCommerce sites. Meaning merchants can deliver an engaging experience across all channels giving them the upper hand over competitors who aren’t using this technology yet. 

With Pragmatik’s AI, merchants can rest easy knowing that those two little words “product recommendations” are covered, allowing more time and resources to focus elsewhere in order to keep growing their business even further!