AI-Driven Personalization: The Key to Unlocking Ecommerce Growth

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The e-commerce scene has evolved. All other businesses are advancing online and trying to reap profits through the internet.

While some enterprise tools can help digital-focused businesses, increased competition means that just existing online or half-heartedly launching campaigns isn't enough for brands to succeed in e-commerce. They need to up their marketing game and reinvent the way they do business with their customers. Modern businesses must anticipate their customers' needs and be proactive with solutions. They need to adapt their messages to be relevant.

Fortunately, technology hasn't left them to do all of this alone.

Artificial intelligence, better known as AI, is helping businesses revolutionize the way they interact with their customers and enabling them to carve out a slice of online success. This breakthrough technology allows brands to step up their game by delivering what customers demand: personalization.

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AI developed long ago beyond the brains of fantasy writers and sci-fi movies. Yet many brands still fail to tap into its true potential, limiting their growth.

We don't just live in the age of AI. The world has successfully entered the era of advanced AI.

Today, brands are using artificial intelligence to adapt their offers, personalize experiences and increase their revenue. With the rapid adoption of AI-driven personalization, many e-commerce businesses are eager to shape a brighter and more prosperous online future.

AI-based personalization uses machine learning, deep learning, natural language processing, and more. to personalize a brand's marketing messages, content, products and services. This technology is reshaping the way brands interact with their customers and preparing them for more profitable customer journeys.

Personalization, of all kinds, is inherently rooted in data.

Artificial intelligence is about its ability to extract, read and draw conclusions from huge volumes of data. Brands with deeper access to data can personalize more precisely. And in doing so, they can deliver optimal customer experiences, at the heart of all modern business-customer interactions.

How AI-Driven Personalization Helps Ecommerce Businesses

AI-based personalization has several use cases in the e-commerce industry. And when used to its full potential, it leads to many benefits which we will discuss below.

Target Marketing: Reduce Marketing Spend, Increase Revenue

Forty percent of customers prefer ads targeted to what they're looking for to make the buying process easier. This could explain why behavioral-targeted ads are twice as effective as non-targeted ads. AI helps marketers run more targeted brand campaigns, which ultimately helps them reduce marketing spend and increase revenue.

How does targeting increase revenue? With AI working behind the scenes, your ad reaches the people most likely to take action somewhere down the line. This makes ad impressions worth the money spent to acquire them.

AI explores large volumes of data and provides better customer segmentation. It also helps create more impactful ads based on previous ad performance. With these findings, marketers can reduce their ad spend by deliberately avoiding ads...