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Online stores face a big challenge. Only about 3 percent of visitors actually buy something, and this number hasn’t changed much in 25 years. New tech companies are using artificial intelligence to help stores sell more. After all, who doesn’t want e-commerce conversion optimization that drives more sales or – if that percentage isn’t budging – higher sales per order?
Why people don’t buy
Most shoppers don’t know exactly what they want when they visit a website. They look around, compare prices, and check other sites.
“For most people, shopping tends not to be a ‘I know exactly what I want, I’m going to go get it and pick it up and go’ experience,” said Zabe Agha, founder and CEO of Metrical, on Episode 676 of “The Business Storytelling Show.”
People often visit multiple websites to compare products and prices. They might check Amazon or other big retailers to see if they can find a better deal. This behavior makes it hard for stores to convince shoppers to buy from them.
The tech to drive conversions
Companies like Metrical use AI to analyze shopper behavior in the moment. They check things like what day it is, where the shopper came from, and what page they’re looking at. All in all, the AI can then predict what the shopper might do next – including if they might drop off and what can be done about that happening.
This approach helps stores treat each shopper as an individual. They can figure out who’s thinking about buying and who’s likely to leave without buying anything.
The AI looks at many factors to make its predictions. It considers the time of year, the price of the product, and even how many reviews a product has. All this information helps the AI make better guesses about what a shopper might do.
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One of my favorites: Fanactics
One great example that keeps me converting over and over is Fanatics. It keeps me on-site, and I end up buying yet another Washington Commanders hat I don’t really need.
They always have a countdown deal. The countdown clock is always there, ticking away towards midnight. This creates a sense of urgency, even though the deal resets daily. Sometimes, they throw in unexpected discounts, too. You might add a hat to your cart, thinking it costs $38, only to find it’s actually $27 at checkout. These surprises can be pleasant, encouraging you to complete your purchase.
But Fanatics, just like other retailers also has to be careful. If prices unexpectedly go up or they tack on small, unexpected fees it can turn shoppers away.
“Fanatics is a an amazing example,” said Zabe. “They’re very sophisticated company from a technical point of view, and they do a lot of things right. Basically, the kind of experience that you’ve had, in terms of going to the site seeing countdown timers, seeing that your price has changed after you add an item to a cart. That’s an amazing, those are amazing topics that they’re leveraging to help drive those types of conversions.”
Smart ways to sell more
Stores can use in-the-moment behavioral information to encourage people to buy. They might remind shoppers about free shipping or offer a discount at the right time.
“We want to be very careful about finding that perfect intersection between preserving brand integrity and getting the customer what they want with the least amount of friction,” said Zabe.
One simple trick that works well is reminding people about free shipping. Even if shoppers already know about it, a gentle reminder can increase sales by more than 10 percent. This works because it doesn’t cost the store anything extra. It makes shoppers feel like they’re getting a good deal.
Timing is everything
Many shoppers land directly on product pages from ads. This means stores often have only one or two clicks to convince someone to stay and buy. AI helps stores figure out the best time to show a message or offer.
It’s not just about when to show a message, but also where. Some pages on a website might lose more customers than others. AI can help find these problem areas and fix them.
“Really look at your ecommerce conversion funnel and say, ‘Where am I losing most of the people,'” said Zabe.
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Beyond email follow-ups
Many stores send emails to remind people about items they looked at. AI can help while shoppers are still on the website. This can work better than sending messages later.
Zabe calls this “another bite of the apple.” It means stores have another chance to make a sale before the shopper leaves their site.
Avoiding annoying tactics
Some websites use tricks to keep people from leaving. They might make it hard to cancel a subscription or keep showing pop-ups. These tactics can annoy customers and make them not want to come back.
AI can help avoid these bad experiences. It can figure out which messages will be helpful to shoppers and which ones might push them away.
The future of online shopping
AI will become more important as online shopping grows. It can help stores understand their customers better and sell more. The goal is to make shopping easier and more enjoyable for customers.
“We want them to be able to feel, ‘Oh, I’m glad I got that message,'” said Zabe. “It got me what I wanted.”
These AI tools aren’t just for huge companies. They can help medium-sized online stores too. Stores making about $50 million to $75 million a year from online sales can benefit. Stores with about a million visitors a month would find use in using Metrical’s software.
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