Targeted Recommendations That Improve the Customer Experience
When most people hear the words Artificial Intelligence (AI), the image of Tom Cruise in the Minority Report flashes through their head. However, in retail and reality (and we are not talking virtual reality), it is much more subtle. You probably don’t even realize that it is there behind the scenes, trying to improve your experience as a customer.
AI has a lot of applications in retail–many of which will help retailers be more predictive in recommendations. Current models are reactive, such as those ads that follow you around for a product you viewed even though you already purchased it. That method of marketing is called retargeting and, while annoying, is effective because it only follows buyers who have already expressed interest in your product. But imagine if AI can help to create a curated shopping experience for customers that is personalized based on what they looked at instead of just the pre-scripted, “if you like A then you will also like B” algorithms. For instance if you viewed a burgundy shoe with tassels, and instead of that same shoe being remarketed to you, you are shown other shoes that are similar and in the same color or with tassels. Mind blown, right?
According to Julie Bornstein of Stitchfix, recommendation has been identified as a key to success across many industries. Bornstein states that recommendations drive approximately 35 percent of Amazon sales, 50 percent of LinkedIn connections, and 75 percent of Netflix views. Imagine where those percentages will go when the recommendations are even more personalized!
The beauty of this is that it won’t be clunky like current recommendations but instead will feel seamless. It will be behind the scenes working away to make the shopping experience better.
Looking for ways to incorporate a better experience for your customers? Let us help!