AI is revolutionizing the app experience. Learn how best to capitalize on AI during the app development stage. AI (artificial intelligence) gives e-commerce apps the insights needed to create highly personalized and successful shopping experiences.
AI is an umbrella term that refers to a range of technology that performs like a person yet is enhanced with the predictive capabilities of machine-learning algorithms. Designed to recognize patterns, these algorithms can adjust their functioning to each app user based upon all prior interactions and previously integrated data.
According to Mckinsey Global Institute, tech giants like Google and Baidu are spending almost $30 billion per year on AI development. The success of Amazon’s Alexa and Apple’s Siri proves that businesses can better target and engage their customers with this new “smart” technology.
AI provides e-commerce companies with a profoundly data-driven approach to app development. You get to apply customers insights to best optimize the user experience (UX), recommend products, and drive maximum sales.
1. AI Lets You Collect and Analyze All Consumer Data
AI helps you to analyze and act upon every piece of consumer data. Apps are stockpiles of customer information, yet it’s difficult to interpret this data manually. AI algorithms make it easy to track, aggregate, and transform these discrete touchpoints into actionable insights.
Where do users frequently bounce from the app? What are the friction points in the checkout process? Which app features are driving sales?
Flush with data, you can observe and understand the buyer’s journey through the app. Monitor trends, track the app’s performance, then optimize the UX to drive sales.
Amazon is known for collecting and integrating data from every channel into its mobile app. This way, the algorithm can adjust the in-app content to each user and recommend the most relevant products. Amazon then aggregates this user data to inform the updates and optimizations it makes to its UX design.
App development companies are the best resource for designing apps apps experience people want by using AI to understand both individual behaviors and wider trends.
2. AI Helps You to Predict Customer Behavior
AI predicts customer behavior by checking a user’s past interactions against the patterns of similar customers. By cross-referencing these usage behaviors, the algorithm can anticipate when what, and how someone will purchase in the future.
For example, even if a Starbucks’ app user enters an entirely new store location, the app tells the barista the customer’s preferred order. The app will also direct the user to a store nearby with the help of a mapping intelligence tool called Atlas. The app factors in local traffic and user demographics before making a recommendation to further enhance the app’s convenience.
People are generally comfortable with apps that monitor their behavior. For example, more than half of people (57%) are comfortable with apps that track their location, while nearly half of people (42%) find location tracking apps convenient.
People use apps for value and convenience, and so expect a personalized experience.
AI helps retailers to create a rewarding app experience that encourages repeat use and customer loyalty.
3: AI Enables You to Recommend Relevant Products
AI gives brands the data they need to consistently recommend the most relevant products. For example, the Target app customizes its content to the season, the shopper’s location, and serves the user coupons that align with prior purchases.
The sales conversion rates of recommended products are far higher than for non-recommended products. Shoppers who engage with a recommended product have a higher conversion rate during that session. Return sessions also saw a lift of 55% in conversions. If a user’s preferences are known, then it becomes easy to surface products they like and promotions that will spark sales.
Prior to AI, making product recommendations was a risky endeavor: Shoppers want their shopping experience to reflect their wishes. AI is a tool that supports that process.
AI development is expanding, especially given the popularity of voice assistants like Apple’s Siri and Amazon’s Alexa. Consumers are increasingly comfortable with AI, which enables brands to refine the in-app shopping experience to be its most rewarding.
Why You Should Implement AI During App Development
AI equips e-commerce brands with stockpiles of customer data. Going forward, the most successful e-commerce apps will leverage this information to accommodate the preferences of their users and deliver the most personalized – and profitable – shopping experiences.
Artificial intelligence companies can assist retailers to maximize the growth, engagement, and revenues of their mobile app.