If your company is being slow to adopt AI because you don’t think it’s that critical yet, think again. AI is having a solid impact on conversions and just as important, it’s having a positive impact on customer experience. According to a FedEx Study, artificial intelligence influenced 17% of all holiday orders in 2023, and 74% of consumers felt that AI improved their shopping experience. The rapid growth in AI functionality promises to deliver an even more personalized and seamless consumer experience in 2024. It’s not a question of if AI will have an impact on shopper conversion this year but rather, by how much?
It’s not a question of if AI will impact customer conversion but rather, how The 2024 holiday season is just around the corner and with the rate that AI is advancing, AI is expected to have a significantly higher amount of influence this year.
If your company is looking to capitalize on AI technologies and create a more enjoyable holiday shopping experience here’s a list of AI capabilities to consider incorporating into your digital strategy this season.
Hyper-Personalized Shopping Experiences
Generative AI, known for its ability to create content based on user preferences, is poised to revolutionize how we discover and interact with products. Imagine logging into your favorite online store and being greeted by a dynamic, AI-generated storefront uniquely curated just for you. This is the extent of personalization that consumers are expecting these days.
Generative AI systems will analyze your browsing history, past purchases, and even social media activity to generate a personalized shopping experience. For instance, if you’ve been eyeing eco-friendly products, the AI might showcase a selection of sustainable gifts tailored to your taste. This level of personalization ensures that every shopping session feels uniquely catered to your preferences, making it easier to find the perfect gifts for everyone on your list.
Recommendations with Gift Giving in Mind
Predictive AI takes personalization a step further by leveraging data to anticipate your needs before you even realize them. This AI technology examines patterns from your previous shopping habits, combined with broader consumer trends, to suggest products you might be interested in.
During the 2024 holiday season, predictive AI will continue to play a crucial role in curating product recommendations but will need to look at behaviors a little differently. AI algorithms can often be tailored for the holiday season to give more weight to very recent search and browse activity and more weight to what’s trending globally on the site. Some AI technologies naturally adjust for holidays and other seasonalities.
Enhanced Customization Options
Customization will reach new heights with the help of AI. Generative AI can now assist in creating personalized gifts or tailoring existing ones to fit individual preferences. From personalized holiday cards with unique messages to custom-designed apparel and accessories, the possibilities are endless.
AI-powered platforms will allow shoppers to input their preferences, such as color schemes, sizes, or themes, and generate custom designs on demand. This means that holiday shoppers can give truly unique gifts that reflect the recipient’s personality and style, making each present more meaningful.
Intelligent Virtual Shopping Assistants
One of the most exciting advancements is the rise of AI-driven virtual shopping assistants. These digital helpers will be available 24/7, ready to assist with everything from finding specific items to answering your questions about product features. During an often overwhelming holiday season, having a virtual assistant can be a game-changer.
Imagine having a chat with an AI that not only understands your needs but also provides real-time suggestions and helps you navigate through sales and promotions. These assistants will be adept at handling complex requests, such as finding a gift for a hard-to-please relative or suggesting complementary products to enhance your purchase. They’ll make the shopping process smoother and more enjoyable, reducing the stress often associated with holiday shopping.
Real-Time Customer Engagement
Artificial intelligence will also enhance customer engagement through real-time interactions. AI systems can use data to engage customers with the most relevant content, offers, and updates. For instance, if you’re browsing a retailer’s site during a flash sale, AI can instantly highlight deals that match your interests and purchasing history. This immediate and relevant engagement keeps shoppers informed and drives conversion rates.
Having this functionality on a website is helpful any time of year but especially during the holidays when consumers are even more inundated with emails, SMS messages, and push notifications than usual. It’s hard to keep up with what the current promotions are when they start and stop, and what the restrictions are. With the help of AI, consumers can shop assured that they will have access to the most relevant and current offers.
The Future of Holiday Shopping
As we step into the 2024 holiday season, the synergy of generative and predictive AI is set to redefine the shopping experience. By delivering hyper-personalized recommendations, enhancing customization options, and offering intelligent virtual assistance, these technologies can help make holiday shopping more enjoyable and efficient for your customers. Consumers will benefit from a more tailored and interactive experience, transforming the way they discover, choose, and purchase gifts and your company will benefit by building loyal customers who are sure to keep returning to your site throughout the year.
Embrace these AI-driven advancements this holiday season and create a shopping experience that’s as unique as each of your customers. Happy holidays and happy shopping!
