People who shop online expect a high-quality, personalized experience. To give each customer the product they want, you need to manage your assortment in a contemporary way. This is difficult to do manually. Instead, you would be well advised to harness the power of Artifical Intelligence (AI). Your customers will benefit from targeted offers, and so will your sales. The use of AI leads to significantly optimized assortment management that benefits all parties. We have examined the impact of AI in online stores. In this post we share the information you need to manage your product range in a way so that each product finds the right buyer and your sales figures soar.
AI-driven assortment control optimizes your processes
Every user has different intentions when browsing your online store. When does it make sense to show someone exactly this very product? AI answers this key question with automated assortment management. The next step is the introduction of complementary products, which can also be controlled by AI in individual product categories.
Increase online store margins with AI
Do you want to offer more products that can generate higher margins for you than other similar products? To do this, you need to know your customers’ behaviour and what their individual needs are. AI makes this possible. The nice side effect of this AI-driven assortment control is that customers, even those who return regularly, are satisfied by your offer. They are served according to their needs and will therefore continue to buy from you in future.
Create a feel-good atmosphere
When customers enter your shop, you can use AI to create a personalized first impression. Give them the best possible welcome. AI-driven merchandising gives you more meaningful information about who has bought what and which similar products they might be interested in, rather than just matching them to item numbers in the purchase history. Tip: Use AI to link product features and user data to increase sales with margin-optimized products that are as close as possible to customer preferences.
Automate the shopping experience
On the other hand, use AI to measure customer preferences such as an affinity for a brand, colour or size. It allows you to act on customer requests and to provide a high-quality, automated shopping experience. Another benefit is that AI can pre-select which products to display to your customers by comparing them to existing products in the warehouse.
Linking data appropriately
At the heart of proper assortment management is linking data. By this you can draw conclusions about the relationship between the customer and the purchased product. A data structure that integrates customer data, such as purchase history or interests displayed in newsletter campaigns, is central to proper linkage.
Close to the customer
Use AI to create a personalized offer that is close to what your users want. Go beyond analyzing interest in buying a particular product and use data on affinities for colour and other product features. For example: If someone is interested in a particular garden hose, you can automatically offer a nozzle in a matching colour.
Offer products that fit and improve cash flow
AI also allows you to customize prices. You can automatically set your own prices depending on the customer group. AI enables you to follow user decisions and automatically offer the right product at the right time and in the right place.
Sell stock quickly
Is your warehouse full? Want to boost cash flow? All the reasons to use AI for assortment control: With artificial intelligence, it’s easy to target stock or hard-to-sell products. Thanks to networking, you know immediately which customer groups might be interested in these products. Tip: Use AI-driven assortment control to hide or display specific product groups based on user behaviour.
Conclusion: Software enables AI-driven online retail
The ability of AI to control assortment while creating a unique shopping experience continuously optimizes your customers’ satisfaction. It keeps them loyal to your store. Not to be underestimated: AI can significantly improve your sales figures with little effort.
To reap the full benefits, rely on expert support. Customer Engagement Platforms, for example, specialize in AI-driven merchandising; such platforms decide which products to present to which users at what time, taking into account your margins, return rates and stock sales.