Leveling Up Customer Experience: Achieving eCommerce Personalization with AI

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Futurism Technologies

June 14, 2023 - 6.2K
5 Min Read

Leveling Up Customer Experience: Achieving eCommerce Personalization with AI

The ecommerce landscape has evolved dramatically, with businesses shifting online to tap into the Internet-driven and digital-first economy profit pool. The increasing competition means that merely existing online or running half-hearted campaigns isn’t enough for brands to make it big in the eCommerce landscape. They need to up their marketing game and reinvent how they deal and interact with their customers. The key to this transformation is AI-powered personalization.

AI-Powered Personalization: The Future of eCommerce Growth

Artificial intelligence, more popularly known as AI, helps businesses revolutionize how they interact with their customers and allows them to carve out their portion of online success. This revolutionizing technology empowers brands to step up their game by offering what customers demand: personalization.

AI has grown beyond fantasy writers’ brains and sci-fi movies. Today, brands use artificial intelligence to tailor their offerings, personalize experiences, and increase revenue. With the rapid adoption of AI-powered personalization, many ecommerce businesses are looking forward to shaping a brighter, more successful online future.

Read also: How AI Is Reinventing the Ecommerce Industry as We See It Today?

AI-driven personalization uses machine learning, deep learning, natural language processing, etc., to personalize a brand’s marketing messages, content, products, and services. This technology reshapes how brands interact with their customers and sets them up for more profitable customer journeys.

The Power of Data

Personalization, of all kinds, is inherently rooted in data. The point where AI hits home is its ability to mine, read, and draw conclusions from huge volumes of data. Brands with deeper access to data can personalize more accurately. And by doing so, they can deliver optimal customer experiences, the crux of all modern business-customer interactions.

The Benefits of AI-Powered Personalization

AI-powered personalization has multiple use cases within the eCommerce industry. When used to its full potential, it leads to numerous benefits.

Targeted Marketing: Lower Marketing Spend, Higher Revenue

More than 40% of customers prefer targeted ads aligned to what they are looking for to make the buying process easier. This could be why behaviorally targeted ads are twice as effective as non-targeted ads. AI-driven digital marketing helps marketers run more targeted brand campaigns, which eventually helps them decrease their marketing spend and increase their revenue.

AI digs through significant volumes of data and offers better customer segmentation, which in turn helps to create impactful ad campaigns based on previous ad performances. With these insights, marketers can reduce their ad spend by deliberately avoiding the ads that are nothing but money-draining pits. Additionally, AI-driven digital marketing and advertising helps to create and deliver tailored content marketing pieces like blogs, ad messages, CTAs, videos, and much more.

Read also: Why AI in Digital Marketing is the Next Big Thing?

Personalized Product Recommendations Increase Order Value

AI-powered personalized product recommendation helps you upsell to existing customers. When your customers visit your website, the AI algorithm picks up their buying behavior, previous transactions, demographic, interests, and other such data offering powerful web analytics. With this information, the website presents relevant and unique suggestions to the visitor, increasing their chances of buying more than what they came for.

Personal Touch: Excellent Customer Service via Chatbots

Offering excellent customer service is another side of the coin. In fact, 75% of customers expect to be taken care of within the initial five minutes. AI-powered chatbots come to the rescue here. These chatbots are programmed to imitate humans and are not limited to generic, scripted, rule-based conversations. Modern AI chatbots deploy NLP, sentiment analysis, and other AI techniques to understand not just the meaning but also the context, emotion, and nuance behind each query.

Read also: How GenAI is powering a new revolution of intelligent chatbots?

Optimized Search Leads to Better Customer Experience

Optimized search learns from customers’ buying behavior and previous searches to customize search results in real time. Optimized search also deploys NLP to understand the nuances of human language and display accurate results. When customers come across the results they want to see; they are more likely to be happy with your service. And it’s the customer’s experience that we are pursuing, aren’t we?

Headless Personalization

Headless personalization refers to the decoupling of the front-end and back-end of an eCommerce platform. This allows businesses to deliver personalized content across multiple channels without being restricted by the limitations of their eCommerce platform. It provides greater flexibility and control over how content is presented to the customer, enhancing the overall personalized customer experience.

Omnichannel E-commerce Personalization

Omnichannel personalization involves delivering a seamless and consistent personalized experience across all customer touchpoints, whether it’s online, in-store, or through a mobile app. According to a report by the Harvard Business Review, omnichannel customers spend 4% more in-store and 10% more online than single-channel customers. This highlights the importance of a cohesive omnichannel personalization strategy.

Privacy-First Personalization

With increasing concerns about data privacy, businesses are shifting towards a privacy-first approach to personalization. This involves collecting and using customer data in a way that respects their privacy and complies with data protection regulations. Transparency about how a brand uses customer data provides customers with control over their data can enhance trust and loyalty.

Real-Time Website Personalization

Real-time website personalization involves delivering personalized content to customers in real-time based on their current behavior on the website. This can significantly enhance the customer experience and lead to higher conversion rates. For example, if a customer is browsing a particular product category, you can show them personalized product recommendations from that category in real-time.

Personalized Communications

Personalized communications involve tailoring your communication strategy to the individual needs and preferences of each customer. This can include personalized email marketing campaigns, personalized social media ads, and more. According to a study by Experian, personalized emails deliver 6x higher transaction rates.

Read also: Top 10 Email Marketing Tips for eCommerce Businesses

Tailored Promotions and Offers

Tailoring promotions and offers based on customer behavior and preferences can significantly enhance the effectiveness of your marketing efforts. For example, you can offer personalized discounts to customers who have abandoned their shopping cart to encourage them to complete their purchase.

The Impact of AI-Powered Personalization

AI-powered personalization can drive more than 25% revenue growth. This is achieved through a combination of targeted marketing, personalized product recommendations, excellent customer service via chatbots, and optimized search results.

Case Study 1: we helped a Chicago-based industrial sales and distribution company deliver AI-driven personalization. The company personalized the images sent via emails to their customers, and saw enhanced customer satisfaction and business growth.

Case Study 2: In another example, we helped a New York-based fashion brand achieve multifold business growth through AI-driven and personalized performance digital marketing solutions. The brand experienced 40% increase in customer engagement and conversion rates.

Read also: How Performance Marketing Is a Blessing in Disguise for Businesses?


Customers these days switch loyalties based on the experiences brands offer. AI-driven personalization helps you offer tailored services, serve relevant content to customers, and enjoy more profitable business relationships. However, along with all its benefits, advanced AI adoption has its complexities. It can be expensive and may demand training. However, these complexities might be worth the results that you are likely to enjoy after the successful deployment of AI.  

In the era of advanced AI, businesses need to leverage AI-powered personalization to stay ahead in the ecommerce game. By doing so, they can deliver exceptional customer experiences, increase customer engagement, and drive revenue growth.

Ready to take your eCommerce business to the next level? At Futurism Technologies, we offer tailor-made eCommerce solutions that meet your unique business needs and provide a seamless buying experience for your customers. From Magento to Shopify, BigCommerce, and more, we support a variety of eCom platforms to ensure you get the best fit and technology for your e-business. 

Don’t wait, contact us today to discuss your needs and let us help you leverage the power of AI for your eCommerce business.

Get in touch with our digital transformation expert today! 

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