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📆 Wednesday, 14^th February 2024 

Hi, and welcome back to Growth Espresso - your one-stop destination for everything e-com.

It’s Valentine’s Day and love is in the air 💘 and in this Espresso ☕️, we’re covering a love story brewing for a while. It’s between AI and Ecommerce - an unlikely couple and yet a match made in heaven ✨ 

From Browsing to Buying, AI is changing the landscape of e-commerce. 71% of customers say that they will purchase from an e-commerce store that provides personalized recommendations. To meet this demand, businesses are leveraging first-party data with AI algorithms, enabling them to deliver tailored shopping experiences 🛒 

Wondering how AI can supercharge your business? Let’s get into the details right away 👇️ 

But first, a little word from our sponsor today - Bay Area Times

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How Exactly Does An E-commerce Business Benefit from AI Recommendations? 🔎 

AI recommendation systems use clever technology to understand what people like, like when they shop online. They check stuff like what you look at, what you buy, and where you live to suggest things you might want to buy.

Why do businesses do this?

• It makes it more likely you'll buy stuff.

• You might end up spending more money each time you buy something.

• It helps companies keep you happy and coming back.

• You get a better shopping experience.

• You're more likely to buy from the same place again.

So, why bother? Companies want to make you happy and keep you coming back for more, so they use AI to help them do that.

Some use cases where AI recommendations can shine 🌟 

Product Recommendations To Increase Sales 🚀 

By recommending products based on the customers’ browsing history, preferences, purchase history and other factors, AI can recommend enticing products which the customer is most likely to buy but did not discover earlier. By placing these recommendations on strategic touchpoints, you can expect a lot of impulse buying from your customers which is a massive win for your business🚀 

Recommendations on product pages 🪞 

Companies like Amazon and Target use AI a lot to recommend you “bought together“ / “similar items“ on the product pages leading to quite some upselling and cross-selling among various categories. If you’re running a business with a long list of complementary products, this is exactly what you need!

Increasing customer engagement ⌛️ 

Have you noticed that you spend a lot more time on some sites than others? Well, it’s AI coming into the picture. AI will make the customer exploration journey adapt to their behaviour leading to more time spent and increasing the chances of purchase.

Minimizing navigation and maximizing conversions 🎯

In some situations, customers know exactly what they want. We know them, they use the search bar. AI can significantly enhance that search experience by image-powered search. It’s simple - your customer can upload the kind of outfit or the product they’re looking for and AI will pull up all the matching inventory right on their screens. Navigation time is slashed, and conversion is secured!

Bringing back lost sales 👈️ 

E-commerce stores lose around $18 billion in revenue annually due to cart abandonment. A lot of businesses employ cart recovery emails with special discounts to bring them back home and complete their purchases.

AI takes this up a level. The moment the user comes back to your platform, AI can begin recommending UGC, tutorials and even offer special coupons to nudge these users to complete their purchase ASAP.

Predictive recommendations 🤖 

Imagine knowing what your customer wants even before they start browsing. Amazing, isn’t it? Well, a lot of AI models are now moving from a reactive approach to a proactive approach when it comes to recommending products. For example, AI can suggest products to the customers which are being bought by other customers living in the same geographies! This is just the tip of the iceberg of what predictive recommendations can achieve.

Content credit: Visenze

Editor’s corner ✒️ 

I hope this piece was informative and useful for you as an ecom business owner/marketer. AI truly has the potential to change the world as we know it - if employed in the right places at the right time. If you’re wondering if you jump the AI bandwagon and test it out for your business, this is your cue to do so!

Reading recommendations

Today, I am recommending some of my favourite newsletters in the space which have personally helped me grow as a professional. Give them a shot, you won’t regret it 👉️ 

1/ Stacked Marketer

Delivered fresh every weekday, carefully curated digital marketing news, tech, and actionable advice can be consumed in 7 minutes or less.

Subscribe to them!

2/ Rundown AI

Get the latest AI news, tools, and step-by-step tutorials in a free daily email. Read by 450,000+ early adopters saving time and earning more.

Subscribe in one click

3/ DTC Daily

Join 18,000 CEOs, founders, and marketers to stay up to date on the latest news, tips, and tools impacting their DTC business.

Subscribe now