25 Artificial Intelligence Recommendations for e-commerce Websites to Improve Personalization
AI has brought a revolution to the eCommerce industry. By 2025, the AI market is predicted to be worth approximately $38.4 billion, with a CAGR of 39.18%. The use of AI in the e-commerce retail industry has rapidly increased from chatbot support to augmented reality and personalized recommendations to future predictions forecasting.
The use of personalized user experience is growing rapidly and it has become the main requirement, especially for e-commerce retail businesses. If your visitors are not happy with the user experience they receive when visiting your website or app, then it is very likely that they are going to leave.
As per a recent Nielsen report, 70% of consumers said personalization influences their purchases. Also, according to that report, 57% of consumers are more likely to buy from a site that offers a more customized user experience.
E-commerce giants such as Amazon, Walmart, and Flipkart have successfully used AI to dominate the retail business. It was not easy for small retail business owners to use AI-powered technology on their websites or Apps earlier. But thanks to the various AI-powered customer data platforms that offer AI-powered recommendation solutions and transforming e-commerce businesses.
We are sharing the top 25 AI-powered recommendations for every retail e-commerce website and app to increase the personalized user experience, future sales forecasting, marketing campaign performance, business sales, etc.
Let’s get started!
Recommend Higher-Margin Products to Customers
E-commerce business owners want to make a good profit from their website or app. To get the best results, you should prepare your e-commerce marketing strategies accordingly. To increase sales profit from your website use AI-powered recommendations to display high-margin products to customers rather than low-margin products. This strategy can increase business profit without increasing marketing expenses.
AI-Powered Similar Product Recommendations
One of the best AI practices is recommending similar products to customers that fit their preferences. Customers will quickly pick products similar to those they have already seen or purchased.
You can, for example, recommend a favorite seller, brand, or product category based on the previous behavior of the visitor.
Identify “Serial Returners”- Shoppers
Use AI data collection to identify customers who exchange or return items more frequently than others. You have to deal with “serial returners” or customers who make a lot of returns. Some users might behave fraudulently, while others struggle to control their buying spending.
These customers typically cost sellers a lot of money. It’s essential to identify the customers who are likely to return so you can plan the actions to reduce return cases and save your delivery and return costs.
Personalized Menu
Customers can use the navigation menu as a road map to find the appropriate category pages on the website. However, if the menu is not personalized, it can bring attention to products or categories which are unappealing to customers.
Through AI personalization, you can rearrange the menu elements based on previous visits and visitor preferences to make it easier for users to navigate the website. It can help speed up a customer’s journey to relevant categories and boost conversion rates.
Here is an example of a sports company website’s personalized menu
Display Customer’s Recent Searches Before They Type
Use the AI-powered search feature to display customers’ most recent searches just before they begin typing their queries. By providing personalized search results, you can track your customers’ shopping journeys and make it simple for them to return to earlier-interested products.
Homepage Banner Personalization
Customers are looking for personalized experiences that make their shopping journey more enjoyable. To extend the design you have already implemented on your site, you can combine several AI-powered features to deliver greater value to the customer.
You might consider creating a personalized banner on the homepage with product recommendations from a specific category and subcategories presented in a customized way.
Best-rated products on the category page
In the journey of the customer, customer reviews are crucial. Making recommendations based on the reviews can help you. Reviews can help to increase business sales and revenue if you handle them correctly.
Therefore, if you display the best-rated products on category pages, their chances of selling are higher.
Item Comparison Recommendations on the Website
A buyer feels confused when there are too many similar products shown simultaneously. In this case, the chance of ordering is less. Its right solution is to offer product comparisons to the customer. It makes the purchasing process simple.
Product comparison is helpful for buyers in answering queries about price, color, features, fitting, etc. Hence product comparison is one of the best AI-powered techniques to boost the sales of e-commerce retail apparel & fashion websites.
Promote New Products When Visitor searches a Certain Phrase
You can also promote new products in the search results with the help of AI search recommendations. You can show smart TV in the search results, for example, if someone searches for TV. By promoting high-margin & new products in search results, you can increase your sales.
Apply Synonyms in the Search Engine
You can fully manage your internal search system’s query process with the help of AI. By using synonyms, you can expand the reach of your products and make sure that customers can quickly find what they’re looking for.
Optimize Sending Sales Emails by Predicting The Best Time
When you create a sales email campaign, make sure that the customer must receive the email at a time when his/her chances of responding are high.
To execute it correctly, we recommend using the time optimizer feature of AI-powered behavioral data platforms.
Send Mobile Push Notifications With Birthday Promotion
A thoroughly planned personalized marketing campaign can enhance your customer experience. This AI-powered recommendation technique helps to grow delighted clients, business sales, and loyal customers.
If your buyer has a birthday, for example, and receives a discount offer on shopping that day, the buyer will be delighted. Such personalized marketing helps to increase repeat business and positive word-of-mouth.
Promote A Brand in Recommendations
If you know which brands’ products are selling the most or making the most profit on your website. Simply use that data and show AI-powered recommendations on your website or app to promote the brand to the right people. This AI-powered technique will boost your website or app sales.
Promote Discounted Products to Customers at Risk of Churn
If you find a few customers are not active shoppers, you can encourage them to become so by recommending discounted items.
Your e-commerce business can benefit from AI recommendations in various ways. All you have to do is use it right.
Promote or Demote Products Depending on the Margin
The most significant advantage of AI recommendations is that you can customize them as per your specific requirements.
For example, you can reduce the frequency of recommendations for products with lower margins while increasing the number of display options for products with higher margins.
Recommendations with items in the customer’s favorite color
When multiple products appear on a page, one factor that strongly influences the buyer’s purchasing decisions is color. You can apply AI Recommendations to display products of the same color that buyer has seen more of in previous visits.
Recommendations with Products in Customer’s Size
The AI Recommendation’s most robust feature is the flexibility to show products that fit the user’s behavior profile. Showing users the products that fit their size is a fantastic tactic.
Big eCommerce businesses use this AI recommendation technique to maximize their online sales.
Personalized category recommendation on home page
Category recommendation shortens the conversion path and takes the user to the right product in the least number of steps. Category recommendations reduce the chances of shopping cart abandonment.
So it’s recommended that the category display on the home page should be done correctly.
Personalized homepage with section recommendation
You can customize the sections of your homepage with section recommendations. In your customized sections, you can add products suitable to the visitors’ preferences. These recommendations show users the products that are most relevant to them.
Bestselling product recommendations
Using best-selling recommendations, you can show new buyers what other people say about that specific product. It is how best-selling AI recommendations can help you influence the decision of the new buyer.
AI recommendations in blog post
AI suggestions can apply to more than just products and categories pages. They are suitable for the blog section as well. You can use AI recommendations to list products in the blog post or just below the content based on the user’s behavior. It can help to boost sales by including relevant products or categories in the blog content.
Brand Switching Campaign
With the help of AI, you can modify the recommended product spots. If a customer searches for a product from a particular brand, you can add products from other brands to display in the recommended product slots with the help of this recommendation.
Recommendations for Unavailable Products
Always keep in mind that it is a good idea to promote a similar product if a product is not available on your website. In this situation, display similar products or products from the same categories with the help of AI recommendations.
Recommendations on an Empty Shopping Cart
Not every visitor to your website becomes a buyer. Some customers will add items to their shopping carts, then remove them without placing an order. Look for areas on your website where you can encourage visitors to make a purchase.
An empty shopping cart is one of the best places to use for increasing sales. Use AI-powered recommendations to target customers who have empty shopping carts.
Recommendations with Visually Similar Products
Use visual recommendations for products that look alike. Visual recommendations help visitors to make quick buying decisions as the products look similar. Use visual recommendations on products that have the same size, shape, color, etc.
The AI use cases list may be longer than 200 suggestions. But we have listed only those which can make a difference in boosting sales and be easy to understand. Our experts can assist you with the right AI recommendations approach to use on your retail apparel and fashion website or app.
Schedule a free consultation session today to discover how to use AI-powered strategies to transform your eCommerce business.