The use of new and emerging technologies in everyday online shopping and e-commerce stores has changed how consumers shop over the past decade. Subscriptions and AI recommendations are part of everyday life for many people.
This article will explore these innovative technologies’ role in personalising online shopping and how they can improve the overall experience.
AI-Powered Product Recommendations
AI recommendation systems utilise machine learning algorithms to collect and analyse data points, including demographics and past behaviours like reviews, search history, and purchases, to suggest personalised product recommendations.
E-commerce merchants like eBay use them to display data-driven suggestions to site users, recommending products based on customers with similar interests. Similarly, tracking cookies, typically set by third-party advertising networks and social media platforms, track the online activity of browsers who opt-in when visiting a website.
They collect information on browsing history, purchase trends, and geographic locations to show targeted advertising and collect analytical data. Together, these systems can streamline consumer discovery by surfacing highly relevant choices, stopping endless scrolling, and enhancing customer loyalty. Sections on checkout pages like “customers also bought” and “frequently bought together” can encourage upsells and cross-sells, increasing average order value.
Virtual Try-Ons & Augmented Reality (AR)
Through virtual try-on (VTO) technology, AR allows consumers to see how a pair of sunglasses, makeup, or dress will look on them without going to a physical store. These virtual experiences boomed during the COVID-19 pandemic as retail stores shut dressing rooms, and consumers still use them to see a new jumper or chest of drawers before buying them.
Since the pandemic, social media sites, including TikTok and Snapchat, have offered filters allowing users to try on clothes and makeup, enabling brands to integrate product catalogues. Implementing AR try-ons can significantly reduce a company’s return rates while increasing customers’ confidence in their purchases.
Smart & Flexible Delivery Options
AI-powered logistics models can optimise delivery times for drivers and customers by continuously processing real-time data, such as road conditions, to recommend the most efficient route.
Drivers can use the models on their GPS map apps to avoid traffic bottlenecks and reduce mileage to deliver faster than before. On the other end, customers have access to tracking and updates like delivery windows to better understand where their parcel is.
Regional delivery services can use real-time data to provide same-day delivery options that suit their customers. Businesses using their planned delivery schedule routes and last-minute requests can reach customers faster than traditional postage.
Voice & Chatbot Shopping Assistants
AI chatbots and voice assistants like Alexa and Google Assistant can help customers find products and place orders to shop at home. They’re particularly popular with Gen Z and Millenial consumers, with one study carried out in 2023 showing that 30 and 27.6 per cent used them to purchase products, respectively.
Asking Alexa for a product recommendation offers a convenience that even smartphones can’t provide. Customers can use their hands to do something else while providing a voice command or question.
Subscription & Loyalty Personalisation
Most UK adults are signed up for at least one subscription service, with many using box delivery services like Hello Fresh. Subscription services can curate products based on consumer preferences, like beauty boxes and meal kits offering mascara from a specific brand or gluten-free food.
Loyalty rewards can also create a sense of exclusivity, encouraging repeat business by building excitement every fortnight or month for what will be in the box. Subscription fees allow businesses to invest more in premium rewards than traditional loyalty programs.
Founder Dinis Guarda
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