Why every online store should embrace AI marketing

When thinking of AI marketing, you might immediately picture crafting extensive prompts and tweaking the results yourself. However, AI can do much more for online stores like yours. It can analyze customer behavior and provide each visitor with a personalized experience. And that personal customer experience? It secures a loyal customer base and, ultimately, more revenue.

In this article, I will show you what AI marketing can do for your online store, how to integrate AI into your e-commerce strategy, and how to measure AI marketing results to ensure your investment pays off.

The potential of AI marketing for E-commerce

AI might seem like something distant — a technological development that quickly generates computer-written texts. These texts are often so generic that they’re easy to see through. So how should it be done correctly? To show you the potential of AI marketing for online stores, let’s take a trip to a shopping street.

In this charming shopping street, a clothing store catches your eye. As you step inside, you are immediately welcomed. "Good afternoon! Enjoying some shopping? Are you looking for something specific, or just browsing?" You decide on the latter. You walk around the clothing racks and pick out some items. While trying them on, a store associate provides advice. You're surprised by the recommendations — they genuinely look at you and know what they're talking about.

The end result? You leave the store with the item you were looking for, along with expert advice (and maybe even a few extra purchases), but most importantly, you’ve had a pleasant shopping experience. "See you next time!" you say as you walk out the door.

The long-unattainable ideal for online stores

This has long been the advantage of physical stores over online shops: a friendly greeting, personalized advice, and an experience tailored to the visitor. This experience is what keeps you coming back to the same store.

For online stores, providing such a personalized experience seemed unattainable for years. Personalization was often limited to simple additions, such as greeting customers by name (which they had entered themselves). Upselling? That was just a list of general products, manually curated by the marketer or store owner — entirely based on assumptions and the same for every customer. Want more personalization? You had to manually analyze customer data or integrate multiple personalization platforms with your store.

Providing a personalized experience with AI marketing

Thanks to AI marketing, the barrier to personalization has suddenly dropped. Online stores gain more insight into their customers and understand them better, allowing them to offer products that truly match consumer preferences.

A growing need for personalization

The demand for personalized experiences isn’t new. Consumers have been seeking more personalization for years. It’s a recurring trend, accelerated by COVID-19 (as lockdowns made us miss personal interaction) and the rise of AI.

How does this demand manifest? The numbers don’t lie. Research from McKinsey shows:

• Companies that implemented personalization effectively generated up to 40% more revenue.
• 71% of surveyed consumers expect personalized interactions.
• 76% of surveyed consumers get frustrated when there are no personalized interactions.

A new approach to personalization

It’s not just that the need for personalized interaction is growing—consumers are also expecting more from it. Simply greeting customers by name is no longer enough. So what else should online stores personalize? Consider:

• Relevant offers based on past purchases and interests
• Product recommendations tailored to website visitor behavior
• Targeted messaging across multiple channels

Enhancing the customer experience with AI-powered offers

With AI marketing, you can fully commit to personalization. One way is by sharing relevant offers. What does this look like in practice?

First, you create target groups based on previous purchases or website behavior. What products are visitors interested in? Then, the most relevant offers are automatically sent to their inbox or displayed on your website. Think of a customer who exclusively buys women’s clothing or specifically searches for Audi parts. By using AI, you can tailor your communication directly to these preferences and purchase history.

Find offers not only in discounted products, brands or categories. Use AI to categorize customers based on their engagement. Are you dealing with a new customer, someone who hasn't purchased in a while, or just a regular visitor? These insights will guide your automations. Thank the loyal customer with a savings campaign and send a special offer to the customer who is in danger of leaving your shop.

This way, you not only respond to what customers buy, but also to how they behave - which ensures an even better customer experience.

Increasing customer value with AI-powered product recommendations

Another way to leverage AI marketing is through product recommendations.

Previously, cross-sell or upsell products (such as “Customers also bought…”) could be automated to some extent. Displaying these feeds alongside various products often happened automatically. However, curating these recommendations remained a manual task. Want unique, relevant recommendations for each product? That required a lot of time.

AI can now handle product recommendations for you. Based on your own store data, AI generates recommendations, which you can place on your website or in an email with just one click.

AI-Based Product Recommendations

Reloadify’s Recommendations module allows you to generate product recommendations using AI. This gives you more time for other tasks while still providing your visitors with the advice they seek. And you'll see the results reflected in your revenue.

With Reloadify's product recommendations, AI generates the right products automatically, so you don’t have to worry about it. At the same time, you remain in control. Here’s how:

• Choose your AI algorithm. This forms the foundation of AI product recommendations. Base product suggestions on the visitor’s own purchasing behavior, the behavior of similar customers (e.g., “Customers who viewed this item also bought…”), or combine multiple algorithms. You’re in charge!
• Control the content of product recommendations. Some products shouldn’t be recommended individually—think of a gift wrap option that customers can add to their order. With a recommendation feed, you can always exclude certain products.
• Approve the design of the product recommendations. Although the recommended products are automatically styled to match your webshop, you always have the final say. If you’re not satisfied with the layout or product selection, you can easily adjust it.

The Benefits of AI Product Recommendations

Showing recommended products is nothing new. Chances are, you’ve had a similar feature on your website for years, either manually or automatically. So, what makes AI product recommendations different from traditional upselling methods? Here are the three key advantages:

1. AI product recommendations are dynamic. The products vary per visitor and always fit their needs. If an item is out of stock, it’s automatically filtered out. Everything operates fully automatically, requiring no maintenance. These dynamic product feeds are also available omnichannel, making them easy to use on your website and in emails.

2. You can manipulate product recommendations. This means you have significant control over the displayed products. Want to highlight seasonal products or promote high-margin items? With just one setting, AI product recommendations will consider your preferences.

3. Each AI product feed comes with detailed analytics. See how often the feed has been displayed, track conversions, and identify which customers placed orders through the feed. This allows you to monitor and optimize your recommendations.

Omnichannel Targeting with AI Marketing

Consumers no longer expect personalization only on websites and in emails. They demand a seamless experience, regardless of which channel they use to engage with your brand. AI marketing plays a crucial role in omnichannel personalization. But how do you use AI to enhance the omnichannel experience? The key lies in AI-powered data integration and analysis.

In e-commerce marketing, data is collected from multiple sources—your website, marketing automation tools, social media, and advertising platforms. This data holds valuable insights for creating a relevant omnichannel experience. However, analyzing it and transforming it into an actionable marketing strategy takes time and expertise. That’s why many webshops fail to fully leverage this opportunity.

This is where AI marketing comes in. AI can consolidate and analyze vast amounts of data from various channels. You can then use these insights for omnichannel targeting.

For example, create audience segments based on purchase behavior or profile data and display targeted ads on Instagram and Facebook. Then, reinforce the same message on your website and in email campaigns. This way, you effortlessly create a seamless omnichannel experience.

KPIs to Measure AI Marketing Success

To ensure the success of your AI marketing efforts, you need to measure its performance. How effectively does AI marketing help retain customers and enhance their satisfaction? Use these three key metrics to track success:

• Customer Lifetime Value (CLV): CLV calculates the total value a customer is expected to generate throughout their relationship with your business.
• Conversion Rate: This metric shows the percentage of recipients who completed a desired action, such as making a purchase.
• Net Promoter Score (NPS): NPS measures customer loyalty by asking how likely they are to recommend your webshop.

Extra Tip: Conduct an A/B test. This is the most effective way to measure AI marketing results. Divide your audience into two equal groups—one receives highly personalized content, while the other sees generic content. Which group engages more and converts better? A/B testing provides immediate insight into AI marketing’s impact.

Accessible AI Marketing Tools for E-Commerce

Whether you want to use AI for personalized product recommendations, omnichannel targeting, or improving the customer experience, you can’t do it alone. An AI platform is the solution.

When searching for an AI platform for your webshop, you’ll quickly realize there are numerous options. How do you choose the right one?

1. Key Features of an E-Commerce AI Platform

First, determine your AI platform’s primary purpose. What must it be capable of? If your goal is data analysis, then the number and type of integrations are crucial. Can you connect Shopify directly to the AI platform? What can you expect from this integration?

Besides data analysis, some AI marketing platforms include an activation layer. These tools allow you to create marketing campaigns in collaboration with AI—keeping everything under one roof.

2. A User-Friendly AI Marketing Tool

Once you shortlist potential tools, test them before committing. Most major AI marketing tools offer a free trial.

During the trial, assess usability. How intuitive is the software? Can you understand it immediately, or do you need a demo or technical training? Determine whether the investment is worthwhile.

A major benefit of AI marketing is time-saving. Keep this in mind when testing an AI platform. Does it actually save you time, or do you end up spending time configuring endless settings? An AI marketing tool that doesn’t simplify your workflow is a waste of time and money.

3. The Cost of an E-Commerce AI Platform

The final deciding factor is cost. Find out exactly what you’re paying for. Are AI features included, or do they come at an additional cost? Is there a fixed (annual) subscription, or can you cancel anytime? Avoid surprises by researching the pricing model in advance.

Tip: With Reloadify, you only pay for the people you want to reach — always.

More Returning Customers in Less Time with AI Marketing

The competitive advantage that physical stores once had is disappearing. Thanks to AI marketing, personalization is now more accessible than ever. Webshops gain deeper customer insights, allowing them to offer products that truly match consumer desires.

AI makes it easier to attract new customers. And once they’re in, they stay. Meanwhile, AI marketing also saves you valuable time.

Are you ready to embrace AI marketing? Explore all AI capabilities with Reloadify.