When thinking about the ways how retailers can use AI for D2C to drive revenue there are so many that come to mind. Mainly two elements spring to mind when considering what makes a D2C brand tick. The first is their obsession with the product and customer service. And the second is that they are far ahead of the crowd in terms of technological advancement and adoption. Last year, D2C brands with dedicated websites saw an 88 percent increase in order volume, compared to 32 percent for eCommerce marketplaces.
As even the most tech-averse stores were forced to move online due to lockdowns, taking a step in the future, D2C retailers jumped ahead of the curve by using AI-powered intelligent automation for their brands. AI is offering direct-to-consumer brands a competitive advantage that they should seize right now.
Let’s explore the top 3 ways retailers can use AI for D2C to drive revenue and efficiency.
- Create Personalized Journeys for Shoppers
In D2C, it’s all about personalization for a particular individual. AI has the potential to tailor content and product recommendations for every individual as per their past choices. At scale, AI may change content and recommendations for each consumer dynamically based on their purpose in that particular session.
Customers will return for more as soon as they see appropriate recommendations, indicating that the site understands their wants and needs. In fact, the adoption of AI has seen a boost in customer retention for many retailers.
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- Cut-off on Lost Opportunities
Imagine someone coming to your retail website and searching for ‘purple lip color and your site shows ‘out of stock. That’s all! That is what we call a lost opportunity. Sites that use AI can help users locate the closest thing to what they’re looking for. A suggestion for any other lip color close to a purple lip color may work, perhaps?
With AI, retailers can drastically cut bounce rates. If a user searches for almond milk on the site and there are none, the site can be automated to offer some other variety of milk having almond extracts or close enough. This has all been made possible with the help of AI.
- Build Continuity
If D2C businesses want to grow their loyal client base without offering infinite discounts, they might focus on pulling customers back from numerous channels while maintaining a consistent experience. D2C firms may use AI to personalize email marketing, notifications, and purchase cycles, among other things.
In conclusion, retailers shouldn’t have a narrow outlook on artificial intelligence technology. It’s about studying your customers, knowing their shopping behavior, and enriching their experience. Combining the product data with customer experience can really help drive sales and improve efficiency in the retail business.