How to use AI to increase Magento 2 sales?
The global AI retail market size is predicted to leap to $23 billion by 2027 from a mere $3 billion in 2019.
AI (Artificial Intelligence) has greatly influenced the eCommerce industry. It has powerful features to help store owners create a personalized user shopping journey.
Magento has a multitude of AI tools to improve website traffic and drive sales.
What is Artificial Intelligence?
AI refers to technology that leverages computers and machines that can mimic human intelligence. It has the problem-solving and decision-making capabilities of the human mind.
Machine Learning - Gives AI the ability to learn. AI and machine learning help users to collect, process, and analyze large data sets.
Deep learning - provides AI with the ability to mimic a human brain’s neural network.
AI focuses on three cognitive skills:
Learning Acquire data and the rules to process it.
Reasoning Use the data rules to reach definite conclusions.
Self-correction The process to continuously fine-tune AI algorithms for accurate results.
How to Use AI to Increase Magento 2 Sales?
1. AI Chatbots
AI chatbots use a process known as Natural Language Processing to simulate human-like conversations.
Benefits of AI Chatbots
24/7 Customer Service
Magento websites can set up AI-driven chatbots for 24/7 customer service. AI chatbots are more effective, efficient, and cost-friendly than human representatives. It aims to improve user experience with a quick and correct response.
AI Chatbots can generate qualified leads from the high quantum of website traffic. It can drive user engagement, gather data and convert user visits into leads.
Magento store's website traffic fluctuates at the time of sales. Hiring temporary human agents to deal with heavy traffic is tiresome and costly. AI Chatbots are adaptable and easy to customize. It can engage multiple users at once with high efficiency.
Answer Bot is an AI chatbot that can answer questions as soon as users start typing in real time. It has the ability to speak multiple languages and resolves common user questions.
Chatbots can interact with the users to build up a persona. With the persona, it can suggest relevant products to the users. It can also directly offer help to users and provide relevant links to the product.
Features to look for in an AI Chatbot:
- Hybrid Chat Platform — AI + Human
- API Webhook
- Payment in chat
- Menu in chat
2. Product Recommendations
AI-powered product recommendation collects two data types:
- Catalog data
- Behavioral data
Creating product recommendations deliver highly relevant products to users by analyzing their behavior and search history.
Recommendation types include:
- Most purchased
- Most viewed
- Most added to cart
- More like this
- Recommended for you
- Visual similarity
3. Context-Based Search
Leveraging AI in Magento offers smart search to the users using predictive algorithms. This ensures that users can find the product they need without knowing its name.
AI-powered search can analyze the context of the search and deliver results based on the users’ intent.
Context-based search offers users a wide variety of results for searched keywords. It can also add visual search features.
This drives better customer experience, higher purchase values, and sales.
4. Virtual Product Trails
Returns and exchange of products is the biggest challenge faced by ecommerce businesses. AI-based technology offers virtual try-on experiences to bring down return rates.
Virtual product trails enable users to try on products using any device with a camera.
- Interact with the product
- Confirm their style
- Confirm their size
This means fluid supply chains and fewer refunds.
5. Automated Inventory Management
Inventory management deals with:
- Demand predictions
- Plan product stocks
- Maintain stocks
- Manage shipping
AI-powered inventory management can analyze over 50 elements in regard to the website’s sales trends. It can anticipate potential changes in product demand to help maintain the right level of stock. This helps avoid running out of stock on best-selling products.
AI can automate restocking to increase efficiency in order management and product delivery.
6. Prevent Fraud and Scams
Behavior analysis backed by AI and ML will help to detect fraudulent activities in your Magento Commerce store.
Accepting multiple payment methods is significant for ecommerce stores. AI in Magento can help identify unsafe third-party platforms.
It can prevent unauthorized access and mitigate the chances of fraud activities.
AI extensions can create a personalized shopping experience for users – without bias or error.
AI’s self-learning algorithms can be used to:
- Collect data on user activity
- Track user behavior
- Draw insights
Adobe Target allows you to customize and suggest products based on users' past activities. Adobe Sensei predicts buyer behavior and allows eCommerce stores to customize their content.
8. Retargeted Marketing
Retargeted marketing is the strategy to target users who have shown interest in your products.
AI discovers insights about your users and offers predictions for marketing channels. AI-generated reports can improve ad campaigns and retarget potential users.
Top 5 Magento AI Extensions
IntelliTicks: AI-Powered Live Chat for Sales1.
- Hybrid Chat Platform — Both AI + Human
- Deeper API integrations
- Payment in chat
- Menu in chat
- Suitable for SMEs
- Affordable - Starts from $0 per month
Rep: AI-powered sales associate2.
- Personalized virtual assistant
- Abandonment insights
- Code-free and seamless integration
- User service flows
- AI drop-off detection engine
- Optimized for desktop and mobile
- Conversation flow
- A/B tests to measure KPIs
SearchSpring: AI-powered site search3.
- Context analysis
- Intelligent product search
- Navigate category
- Effectual insight suite
- Dynamic Magento product recommendations
- Intuitive merchandise suite
Choice AI: AI-powered shopping assistant4.
- Automatically identify and push key features of products
- Contextual pop-ups
- Automated email (MailChimp)
- Visual product feature search
Automatic Related Products: Personalized recommendations5.
- Choose the source type for the display
- Apply the ‘same as’ condition
- Choose how to show blocks
- Replace items manually
- Upsell and cross-sell on various pages
- Link products together
- Display popup for configurable
- Show AJAX popup
Magento 2 extensions can enhance the capability of your Magento store to increase conversions.
Here are some of the best SEO extensions for Magento 2 to increase sales.