Top 5 examples of AI & ML to enhance your ecommerce customer experience strategy
Experts often discuss the power of Artificial Intelligence (AI) and Machine Learning (ML) models that intelligently react to customer intent in real time, but what do these capabilities look like in action? In our “Intelligence in Action” series, we’re exploring the most robust real-world applications of AI and ML technology currently enhancing the customer experience strategy across industries. Previously, we covered intelligence in banking, quick services restaurants, retail, and consumer goods. Now, we will discuss intelligent solutions for an optimized e-commerce experience.
The number of digital shoppers is expected to reach 230.5 million by 2021—and this ever-growing population spends an average of $82 per order placed on a desktop device. As more shoppers turn to e-commerce for clothing, groceries, and everything in between, the industry becomes particularly ripe for AI and ML applications. By enabling 1:1 personalization, the e-commerce industry augments the online shopping experience, leveraging human-like interactions and relevant content and promotions to drive value every step of the way.
1 | Zappos
Their solution: Zappos implemented a smart search results tool to better serve digital shoppers with personalized results pulled from its massive inventory that otherwise can be entirely overwhelming.
How it enhances their customer experience strategy: Zappos sees upwards of millions of unique search queries every month, generating a high volume of data points that can be challenging to translate into actionable strategies for elevating the customer experience. As such, Zappos introduced a smart search results tool that enhances customer engagement and decreases return rates by addressing two prominent complications that online footwear retailers face every day: figuring out sizing and serving up accurate results with every search.
2 | Warby Parker
Their solution: Warby Parker, the online retailer for prescription glasses and sunglasses, leverages an all-in-one communication platform with live chat functionality and real-time insights.
How it enhances their customer experience strategy: While the convenience of online shopping serves as its greatest incentive, some retailers are not as optimized to function online successfully. The search for glasses typically begins in-store or in the doctor’s office, making the online platform more challenging to optimize. However, Warby Parker’s website features a smart, HIPAA-compliant chatbot that connects customers to the right agent immediately upon evaluating the question at hand, providing the 1:1 assistance, personalized promotions, and human-like conversations needed to confidently purchase glasses.
3 | Target
Their solution: Target Circle, formerly known as Cartwheel™, is Target’s new and improved savings and rewards program.
How it enhances their customer experience strategy: As one of the most popular catch-all stores—with departments ranging from outdoor furniture to beauty supplies—Target serves a highly diverse range of customers and preferences. Target Circle tailors its loyalty platform to every individual, serving up special offers and savings based on how each person shops. In the initial pilot roll-out of this program, guests racked up $1.5 billion in savings through the more refined loyalty program.
4 | StitchFix
Their solution: StitchFix is a personal styling service that delivers 1:1 interactions using AI to tailor recommendations to each individual.
How it enhances their customer experience strategy: Beginning with a comprehensive style quiz, StitchFix begin learning your style and preferences from the get-go, building upon its knowledge base with every interaction. Taking into account price range, size, current trends, customer feedback, and favorites, an algorithm is used to evaluate customer satisfaction with every box purchased, and pair customers with the right human stylist to review and revise each custom box before it is mailed.
5 | Macy’s
Their solution: The “Vendor Direct” initiative in Macy’s e-commerce strategy.
How it enhances their customer experience strategy: With the new “Vendor Direct” initiative, Macy’s has expanded its product catalog significantly, empowering its online retail segment to better compete with e-commerce giants such as Amazon. Through advanced analytics, Macy’s curates product selection for every individual that is localized down to their nearest store and personalized based on their browsing history.
Interested in discussing how an intelligent AI solution could optimize your e-commerce customer experience strategy? Learn more about how our AI-powered in-session marketing platform can enable a completely personalized digital shopping experience.