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What Does The Future Of AI Ecommerce Marketing Look Like?

May 28, 2024

Marketing News

What Does The Future Of AI Ecommerce Marketing Look Like?

AI ecommerce marketing is not a new phenomenon. 

Since its inception, AI systems such as OpenAI and ChatGPT have become steadfast tools in ecommerce marketers’ tool belts. 

Yet, AI is so much more than just plodding prompts into ChatGPT. Ecommerce marketers are, on average, missing out on many of the magical benefits of AI ecommerce marketing.  

Recent surveys have found that nearly 50% of ecommerce marketers who use AI for their work wish that they had AI to help them across a variety of issues including: marketing analytics, forecasting consumer behaviour and attributes, and conducting cross-company performance comparison.

@assemboai

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However, AI that can perfectly solve these issues already exists. Many marketers simply are not aware of the many shades of AI ecommerce marketing as ChatGPT and OpenAI have been so dominant in the space. 

For these marketers, it is time to join the changing tide before you get swept away. Research has found that in just a few years time, Gen AI is only going to be a small portion of the AI ecommerce marketing toolset. 

As such, if your expertise ends at ChatGPT prompts, you may already be behind. 

That’s why now is the perfect time to get up to date on all the ways that AI ecommerce marketing can change your business and where it is going. Read on to find out! 

THE MANY SHADES OF AI ECOMMERCE MARKETING 

AI ecommerce marketing has the potential to completely revolutionise the ecommerce space. 

Already, ecommerce marketers across the world are discovering the millions of ways AI can help boost their performance, efficacy, and success day to day. 41% of ecommerce marketers believe that AI leads to improved quality and accuracy in the workplace, and 46% believe that AI significantly increased their overall productivity at work in the past 6 months. Moreover, a recent study by Forbes revealed that 64% of business owners think AI will help improve customer relations.  

Yet, in spite of the fact that many industry goers believe in the power of AI ecommerce marketing, many are wholly under utilising AI ecommerce tools. For instance, generative, predictive and conversational are currently the most commonly used kinds of AI; with 56%, 53% and 54% of marketers using these forms over the past 6 months. These systems, whilst incredibly beneficial, are only the tip of the AI ecommerce marketing iceberg. 

@developdigitalcharlotte

How we use AI to help us write optimised Facebook Ad copy for our ecommerce clients 😍✍️ #ecommercemarketingstrategy #brandstrategy #brandstrategytips #brandstrategyadvice #brandstrategy101 #tiktokads

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When asked which AI capabilities have the largest impact on customer experience, 32% of respondents answered customer service, 31% answered idea generation, and 31% internal process automation. 

Whilst AI’s positive impact on these areas is immense, this is far from the totality of AI ecommerce marketing. Some of the biggest areas for AI powered improvement include personalisation, streamlining operations, new business model discovery, enhanced customer service and preventing/detecting fraud. 

Personalisation 

Consumers are increasingly desiring personalisation from the brands they purchase from. A whopping 71% of consumers today expect personalised experiences from brands. Interestingly, 76% find it frustrating when brands do not offer up personalisation. 

Up until now, brands have found it difficult to cater to this burgeoning consumer need. That’s where AI ecommerce marketing comes in. 

AI and machine learning alike have blown apart personalisation over the past 10 years, giving ecommerce businesses access to better predictions and improved accuracy on recommendations. The latest advancements in AI, especially large language models (LLMs) have greatly improved the ability of brands to serve quality personalisation at a large scale. 

On top of this, LLMs can provide your business with quality insights into consumer intentions, allowing for more targeted marketing. When used in conjunction with AI generated content, this can also give you access to improved scalability. 

Streamlining Operations 

One of the most championed aspects of AI is its ability to provide businesses with a better understanding of their customers. This is due to its uncanny ability to comb through browser history, past purchases, and many other key details to provide top notch personalisation. Yet, AI can also be very helpful in the background by giving businesses everything and anything from better resource allocation, cost reductions, greater efficiency and productivity. 

@pulpdigitalagency

Why this AI-powered content generator is a GAME CHANGER #ecommerce #socialmediamarketing #digitalmarketing #confetto

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Pricing Strategies

When it comes to deciding on how to price your products, AI is simply the most effective tactic. 

AI gets rid of most of the guesswork, allowing you to get to the best price almost immediately. AI systems are able to factor in demand patterns, seasonal fluctuations, competitor pricing, and other necessary variables to get straight to the right price for you; rather than you having to conduct hours of research to ascertain a price estimate. 

In fact, AI can even look ahead to the future, allowing your brand to engage in dynamic pricing practices. AI can anticipate optimal discounts in the upcoming year, helping you maximise conversion rates. 

Inventory management 

Using much of the same data involved in pricing strategies, AI is able to improve inventory management. 

Powered by its research, AI can deliver solid answers on demand fluctuations and limit many of the problems brands face with overstocking and, conversely, understocking. This is due to the system’s ability to reduce questions on how demand will change over time for specific products. 

Moreover, when used in conjunction with RFID tags and sensors, brands will be able to tell what products are selling as they are being sold. Operations will have a clear knowledge of where shipments are headed as well, which is a huge benefit to providing customers with forecasted arrival times; a key part of top notch customer service that modern consumers expect. 

Discovering New Business Models 

Businesses are changing the way they create value, as a result of AI’s ability to predict outcomes. This will inevitably lead to the displacement of more traditional business models in favour of a new array of strategies. We are already seeing this with virtual assistants and AI chatbots, which have completely rewritten the manner in which businesses go about customer engagement. 

@curatedfarah

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Visual recognition technology is another new update ecommerce loves to tap into. This, in combination with virtual try on, are allowing users to try and test a product before they buy it. No longer do they have to find a physical store. They can now roam around your ecommerce store amongst suggested items from their image search, and try it on before they buy. 

AI ecommerce marketing is creating a physical experience online for users.

Enhanced Customer Service 

AI ecommerce marketing’s ability to take customer service to new heights is not new news to seasoned marketers. 

AI powered chatbots have completely changed the face of online customer service, providing consumers with 24/7, top notch service across any and all queries. These incredible chatbots ensure consumers with quick to answer questions are spoken to immediately; giving your employees more time to help consumers with bigger, more complex issues. 

Ultimately, AI decreases the workload for customer service representatives, and gifts consumers a more streamlined, effective, and all round satisfactory experience. 

Preventing and Detecting Fraud 

Unfortunately, ecommerce platforms are frequently fraud targets. 

Using AI-powered fraud detection systems helps decrease the chance of fraudulent transactions, as these systems can be used to analyse consumer behaviour, detect patterns, and track fraudulent IP addresses. This ensures that losses are reduced, and that your site is as trustworthy as possible 

This is a fantastic way to ensure consumer retention as well. Many customers are fearful of purchasing from ecommerce sites due to the many horror stories of fraud floating around the internet. By backing up your site with AI, you are creating the safest place possible for your customers to shop; giving them peace of mind, and improving conversion rates. 

HOW TO OPTIMISE AI ECOMMERCE MARKETING

So, now that you have been sold on the power of AI ecommerce marketing and its place in the future of this growing industry, how can you be sure to implement it most effectively? 

Shifting over to AI ecommerce marketing is not an easy feat. Yet, if you follow through with these easy steps, you will be a fast-moving, AI-powered machine in no time! 

@storeya.com

How are you going to use AI to automate your shopify store? #artificialintelligence #ecommerce

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Identify where to implement 

Before you jump headlong into AI ecommerce marketing, it’s essential that you evaluate business needs and figure out how exactly the technology can help best. Find areas with the biggest opportunity for improvement and focus on these first. In doing so you ensure that the Ai system you select and implement perfectly aligns with your business needs. 

Begin with education 

Going into AI blind is a recipe for confusion and ineffective implementation. 

Be sure to use all the knowledge available to you to gain a steady understanding of the systems you intend to implement. This ensures that you can easily avoid common failures, and sail through the AI start-up process with ease. 

Arm yourself with a solid understanding across the entire AI process, from implementation to integration and finally optimisation. As a result, you will be certain to make the best choices at every turn, and start your AI journey off on the right foot. what you are getting into. This is a sure fire way to ensure you avoid common failures and repeating other companies mistakes. 

Lean on your existing, valued team 

Much like any technology, implementing AI will always be smoother and more successful if existing team members embrace it. 

AI is here to make all of your lives easier, so be sure your team is on board and understand it is here to help, not replace. To do so, seek out internal supporters that will do a fantastic job at spreading the good news on how the new system will positively benefit the company and employees alike. 

@dario.mr1

How AI Runs My Business 🤖…..These multi-million companies are run by AI. #ai #onlinebusinesstips #ecommercebusiness #ecommercetips #digitalmarketing

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LOOKING TO THE FUTURE OF AI ECOMMERCE MARKETING 

Ultimately, the future of AI in ecommerce marketing is unlimited. 

AI is ready and waiting to reshape the industry from top to bottom, arming marketers with better knowledge, more effective operations, savvier customer systems and more. All that is holding it back, is ecommerce marketers themselves. 

Many ecommerce marketers are still either wary of the role of AI in their industry, or uneducated on the scope of its capabilities. 

AI is not here to replace roles or destroy the creative process. What’s more, it is so much greater than simple Chat GPT. AI has the potential to greatly benefit the ecommerce industry, if it is implemented correctly. 

Brands should focus on understanding the many kinds and powers of AI, and how it can help their specific business. Arm yourself with knowledge, and take AI in your stride. It is not a force to be reckoned with, but rather one to join your arsenal and power you into the future. 

A future of AI supported ecommerce marketing is one with happier consumers, more effective business operations, and greater creative freedom for employees. It is time ecommerce marketers took the plunge, and recognised AI for what it is: a high speed train to the future, that will pass them by lest they jump on board now.

Our influencer marketing agency and social agency are located worldwide, with our agency network based in the USA, UK, UAE and China.

If you want to find industry insights, visit our influencer marketing and social media blogs.

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Author

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Annette Klar

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