We’ve all been shoppers and must admit that the shopping experience should be fast, simple, and personalized. That’s why AI personalization e-commerce tools are becoming more popular. In the past, personalizing e-commerce seemed almost impossible. But with the power of AI and automation, brands can finally tailor the shopping experience to match the actual preferences of their customers.

Among marketers using AI, 57% say that personalization technology is the key to enhancing 1-on-1 customer experiences at every touchpoint. If you also want to provide a better experience for your customers and gain a competitive edge in a market full of similar businesses, keep reading our article below to learn how AI personalization is changing e-commerce.

How AI Personalization Transforms E-commerce Business?

AI personalization e-commerce is used in almost all processes or aspects of online business and finds itself getting adopted by big and small brands. A prime example includes Amazon, which deploys AI-powered recommendation tools that would suggest products based on the search and purchase history that users have on the platform. It improves user experiences and also grows conversion rates. AI is bringing considerable benefits to e-commerce. Here are the 3 most common applications, proving how AI completely changes this field.

1. Personalized Marketing Messages

While personalized marketing was manual and demographic-based before digitalization, that method also tended to be inaccurate. In the modern digital age, AI and machine learning come into play allowing marketers to move away from broad categorization to individual behavior. This helps them move from reactive to predictive strategies.

With AI e-commerce personalization, brands can slice and manage effective campaign segments. AI can segment customers by behavioral data to let businesses create marketing plans that fit particular audiences. For example, AI identifies customers more likely to make repeat purchases and changes the messages of marketing to optimize all use of marketing resources.

2. Personalized Product Recommendations

AI personalization e-commerce will be of vital importance in offering personalized product recommendations based on customer information, thus boosting shopping experiences. According to studies, 60% of customers consider product recommendations one of the main factors that influence making their very first purchase with a brand.

In today’s competitive and distraction-filled market, product recommendations can be a game-changer. They can encourage customers to return to your site and make first-time visitors feel valued and understood by your brand.

3. Visual search and personalization

Some studies have shown that 71% of online shoppers frequently use the search function, and 27% always rely on it. Visual search has made finding products much easier. AI-powered visual search technologies allow users to search for products using images. A prime example is the e-commerce platform Shopee, where users can upload an image to the search bar, highlight specific areas of the image, and find the exact products they’re looking for.

AI Personalization Tools for eCommerce

Currently, a variety of AI personalization e-commerce tools available in the market will help you maximize the shopping experience of your customers.  Below are some of the most highly-rated tools:

1. Insider

Insider helps marketers connect customer data from various channels and predict their behavior using AI. This allows businesses to offer personalized omnichannel experiences, creating seamless shopping journeys across multiple touchpoints, from websites and messaging apps to social media channels. Many top global brands such as IKEA, Samsung, Toyota, Burger King, Estée Lauder, and MAC Cosmetics use Insider. It’s recognized as one of the most prominent AI e-commerce personalization tools worldwide.

2. Bloomreach

Bloomreach is a commerce experience cloud designed to create unique journeys for millions of customers simultaneously. With its AI-powered Discovery feature, Bloomreach personalizes the search and sales process, providing automated marketing solutions and a robust content management system. This AI e-commerce personalization tool helps e-commerce companies grow and scale rapidly while improving the customer journey to increase revenue. Brands like PUMA, Bosch, and Marks & Spencer currently use Bloomreach.

3. MoEngage

MoEngage is considered one of the best AI e-commerce personalization tools and has won awards for its performance. It uses AI-driven insights to deliver engaging omnichannel experiences. Specifically, MoEngage helps marketers build customer-centric campaigns by leveraging customer data to determine the best content, channels, and timing to reach customers. 

This winning strategy ensures increased reach and conversions. To date, MoEngage delivers 2.2 billion omnichannel experiences each month and is used by over 1,200 brands.

4. Vue.ai

Vue.ai offers AI-powered catalog management, image moderation, styling, and 1-on-1 personalization to create unique and effective customer journeys. It helps retailers run their online stores more efficiently and boost sales by enhancing the shopping experience. Vue.ai has increased profitability for many retailers, including big names like Diesel, Nordstrom, Columbia, and Johnson & Johnson. This AI personalization e-commerce tool also allows e-commerce businesses to create custom AI models tailored to their business goals and needs.

5. Clerk.io

Clerk.io is an e-commerce personalization software that uses AI to attract, convert, and retain customers. It analyzes customer behavior and identifies trends to automatically recommend relevant products and search results for current shoppers. Additionally, Clerk.io supports email marketing and omnichannel experience management, helping e-commerce businesses achieve a 15-30% growth in sales. It has been used to drive sales for well-known brands such as Jeep, Carlsberg, Stylepit, and Unisport.

How can Luvina help build your own AI Personalization Tools

In the era of online shopping and rapidly developing digital platforms, retailers must recognize the importance of technology solutions to establish a strong presence in customers’ minds while optimizing costs and operations. With many years of experience in the IT industry, Luvina is always ready to help our clients achieve specific milestones by providing quality insights and knowledge about AI in e-commerce that aligns with their business needs.

With a flexible and eager-to-learn team of IT experts, we offer comprehensive software and application development services that include all the steps you need, from planning and development to testing and maintenance. The Luvina team has experience working with multiple e-commerce platforms, such as Magento, WooCommerce, and Salesforce, supporting large-scale international e-commerce systems with thousands of SKUs. Luvina is also researching AI applications in various e-commerce projects, such as personalizing customer experiences on websites, implementing AI chatbots for superior customer support, and using AI to optimize competitive product pricing.

If you want to experience high-quality services certified with ISO 9001 and CMMI Level 3, partner with Luvina today. We are eager to listen to your ideas and provide maximum support in developing and integrating AI e-commerce personalization tools.

Final Thoughts

Artificial intelligence is the future of e-commerce. This technology is already improving every aspect of the digital world and will continue to do so. As e-commerce becomes more competitive, AI e-commerce personalization will be key for businesses in attracting and retaining customers. With AI-driven tools, brands can customize products, promotions, and content to reach the right audience at the right time, thereby strengthening brand loyalty.

We hope this article has helped you better understand the impact of AI in the field of e-commerce. If you have any questions related to the development or integration of AI personalization e-commerce tools, please contact Luvina.

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