Telecom & Technology Consulting
If you’re like most of us in the tech world, you’re always being exposed to new possibilities for applying AI to projects. The technology continues to improve productivity, efficiency, and experiences, which is especially apparent with e-commerce.
For starters, AI is revolutionizing how consumers use search. Whereas traditional search often delivers mostly irrelevant results, generative AI provides much more accurate results.
That’s because AI can leverage the context of search queries, which in turn means more targeted and personalized results. Shoppers find what they’re looking for quicker than ever before, making search a more intuitive and efficient experience.
For example, someone searching for “organic snacks for kids” will get personalized options for their requirements instead of a general list. As this precision improves consumer satisfaction, it also boosts the chances of converting visitors to customers.
Interestingly, despite the obvious benefits of AI-powered search, many retailers aren’t catching on. In fact, although nearly 70% retail companies claim that generative search is crucial for success, many are uncertain how to maximize generative AI prompting.
The reason for this gap between belief in AI and actual execution? Only a small number of retailers possess the right combination of skills and technology to transition from traditional e-commerce to AI-enabled commerce. These organizations don’t have any secret sauce. Rather, because of their experience, they know which questions to ask.
For example, they want to know how they can have products and content be part of search results within third-party responses. They’re curious if their traditional search engine ads will be compatible with generative AI interfaces. They wonder how their search capabilities compare with others in the retail space. And they’d like to know the advantages and disadvantages of partnering with a generative AI vendor.
That said, no matter where a retailer sits on the spectrum of generative AI knowledge, they can take positive steps toward implementation. There are foundational tactics and strategies for reconfiguring your e-commerce strategy centered on generative search.
To begin, you must improve your data management practices. Consider that successful generative AI prompting depends on the quality and quantity of your data. Yet by nature, the average retail company is challenged with disparate, siloed data across their various systems.
Accordingly, it’s vital that retailers enhance how they use customer data platforms. Specifically, these platforms should be integrated with cloud-based platforms, which ultimately develops a comprehensive data repository.
Once your data gets properly organized and categorized, it’s time to look at how you handle content. Retailers must assess and adjust their web content, both written and visual, to meet the specific requirements for generative AI search. In practice, this means easier to scan content: short paragraphs, intuitive headings, bulleted lists, proper use of imagery, and other strategies that allow consumers to easily grasp search results.
These strategies may appear obvious. Of course data and content needs to be in a healthy place. The question is, how do you execute? This brings up something we mentioned earlier – the need to have the right talent. Sure, few retailers can legitimately claim to possess a truly qualified team, but that doesn’t mean you can’t develop one yourself.
There’s a fierce battle for skills these days, and even prominent retail brands can’t always compete based on salary and benefits. As such, tech leaders would be wise to invest in AI consultants to upskill your current employee base. Improving a worker’s skill set and career arc does not only help you in the short-term, those individuals will tend to reward you with loyalty.
Consumer behavior is constantly evolving, as is the technology they rely on for making shopping decisions. Successful retailers will give customers the most efficient experience possible. And by using generative AI, that experience will translate into higher engagement and increased sales.
