The Role of Artificial Intelligence in E-Commerce Personalization
The world of e-commerce has significantly grown over the last decade, with sales anticipated to reach around $7.4 trillion by 2025. But online purchases aren't the only number that’s continuing to rise.
Today, there’s an estimated 12 to 24 million stores online competing for consumers’ attention. In order for these retailers to stand out, they need to deliver an exceptional shopper experience (CX)—especially since 89% of customers say they would switch brands after having an unpleasant one. Nowadays, consumers expect the stores they shop at to understand their needs on a personal level. Miss out on providing this, and you could end up losing tons in revenue every year.
So how can e-commerce stores provide personalized shopping experiences that keep their customers coming back for more?
By getting smarter with artificial intelligence. Artificial intelligence (AI) is an e-commerce trend that has quickly become one of the most valuable tools in transforming how brands interact with their customers. Not only does AI amass large amounts of data to predict future online shopping behaviors, but it enables online retailers to use this information to create personalized marketing messages at scale. Put this all together, and you end up with the tailored shopping experiences your customers demand.
In this article, we’ll take a closer look at what artificial intelligence is, and explore the benefits of integrating AI into e-commerce solutions for long-term retention and success.
Understanding E-Commerce Personalization
Personalization can help e-commerce stores customize their website to meet the distinct needs of each of their shoppers. This included everything from searches to design layouts to product descriptions.
The more personalized content you offer your shoppers, the better the overall experience. In fact, studies show that 77% of customers who experience a positive CX are more likely to recommend the brand to a friend. That’s because personalization helps build a connection with each customer, resulting in greater satisfaction and brand loyalty.
Related: 10 Retail Website Personalization Myths Debunked
Understanding Artificial Intelligence
AI generally refers to a simulation of human intelligence that can predict, sense, and automate data. By using other technologies like machine learning, deep learning, and neural networks, artificial intelligence is able to extract the most useful information from the collected data. This data is then used to help online retailers enhance their overall customer experiences.
Artificial intelligence applications are so effective, that 84% of e-commerce stores are already working AI solutions into their business or have it as their topmost priority—a testament to the many benefits it has to offer.
Benefits of AI in E-Commerce Personalization
Now that we’ve explained what artificial intelligence is, let’s uncover some of its key advantages in enhancing personalization.
It provides important customer data.
Nearly 50% of companies use AI tools to address data quality, thanks to its ability to obtain, interpret and draw accurate conclusions from enormous amounts of information. For online retailers, these insights can then be used to resolve shopper pain points, create relevant content and ultimately, understand every stage of the buyer journey so they can deliver an optimal CX.
It helps retailers understand their customers better.

Truly knowing who shops on your site can be difficult—even with the right information. Artificial intelligence uses data science to connect the data points together in a way that is easy to understand and allows online stores to tailor their content based on their findings for each individual visitor.
Related: What is the Best Way to Analyze Digital Body Language?
It anticipates customer expectations and behaviors.
One of the most powerful components of AI is its ability to predict a customer’s next steps that can then be used to create relevant content like personalized offers, product recommendations, custom emails, and more.
Each time a shopper visits your site, the artificial intelligence algorithm collects their information—demographic, interests, previous transactions, buying behavior—and uses it to recommend relevant content to engage them and compel them to buy.
It offers intelligent product recommendations.
One of the most beneficial attributes AI has to offer is its ability to provide personalized product recommendations to each shopper who visits your site.
Studies show that 54% of retailers claimed that product recommendations act as the key driver of the AOV (average order value) in customer purchases. On the flip side, 49% of consumers said they’ve purchased a product they didn’t initially intend on buying after receiving a personalized recommendation.
Artificial intelligence technologies like Granify’s machine learning analyze info such as browser history, page clicks, and past purchase history to determine the types of products that may be most appealing to each shopper. The more attractive the suggested items, the higher the chance they’ll be added to the cart and purchased down the line.
It improves customer interactions.
It’s no surprise that how a business interacts with its customers plays a huge role in whether they maintain that relationship. The harsh reality is that it doesn’t take much for a visitor to leave you for good—61% of customers will turn to a competitor after just one bad experience. Even worse, less than 20% of consumers believe that customer service today is exceeding their expectations.
But don’t lose hope! Implementing AI-powered tools like chatbots and virtual assistants not only helps address customer concerns in real-time, but is actually favored over speaking to their human counterparts (67% of customers prefer self-service over speaking to a company representative).
How come?
These automated services tend to answer simple queries quickly and efficiently, and can handle multiple interactions at any given time. Most are also available at any time of day, making them a convenient solution for those late night shoppers with questions on their minds.
It increases conversions and revenue.
You can make all of the customers in the world happy, but if none are crossing the shopping cart finish line, then you’re still left in a revenue conundrum.
Fortunately, studies show that offering the right kind of tailored experience can earn you 40% more in revenue than the average.
By using an AI-based personalization strategy, online retailers will be able to both engage each of their shoppers through tailored experiences and drive their conversions and revenue further than ever before.
Moving Forward
If you’re an e-commerce store, using AI to create smarter, interactive, and unique experiences for your shoppers is absolutely necessary in keeping ahead of your competitors. Aside from becoming the standard for online retail, artificial intelligence provides invaluable resources that allow you to use big data in real-time to optimize the user experience while also personalizing your messaging at scale.
This rising industry has not only begun to change the way businesses interact with their customers, but will continue to have a considerable impact on how retailers deliver personalized customer experiences. Your best bet? Jump aboard and take your customers on an AI experience they’ll keep wanting to come back for.
Ready to take your personalization to another level?

Granify’s machine learning technology is proven to boost engagement and conversions by offering the right message at the right time, for the right person. Ask us today how we can enhance your e-commerce website with our innovative AI technology.
Share this
You May Also Like
These Related Stories

How to Use Next Best Action Marketing in E-Commerce

9 Important E-Commerce Trends to Know Heading Into 2023
