Future of CRO: AI Meets Conversion Rate Optimization

Artificial intelligence (AI) plays a major part in transforming the eCommerce sector, in which conversion rate optimization (CRO) is no exception. The term AI CRO has been floating around in recent years, and this blog post is designed to explore this very topic. You will be guided through the rudiments of AI tools in eCommerce, its applications in CRO, and exactly how to make this concept work for your business. Ready to stay ahead of your competitors? Keep scrolling to learn more.

An Overview of Conversion Rate Optimization (CRO)

CRO is an integrated element of all eCommerce businesses that aim to build an ideal digital storefront that garners authentic conversion.

What is CRO?

Conversion rate optimization, often known as CRO, is a term mostly used by eCommerce merchants and their counterparts to describe the process of enhancing a website to encourage the percentage of visitors to take a desired action. CRO encompasses the use of A/B testing, user behavior analysis, personalized content, and the like to improve a website or landing page. As the name suggests, the ultimate objective of a CRO strategy is always conversion.

The Importance of CRO in eCommerce

While AI CRO is a fairly new concept, the initial CRO strategy has been a staple in the eCommerce world for decades. Thus, its importance is undeniable. Below are some of the most prominent points:

• Improves User Experience (UX): CRO takes every component on a website into account, namely navigation, design, and speed, thus enhancing the UX as a whole.

• Cuts Down on Acquisition Cost: Instead of dropping stacks on costly advertisement and other acquisition strategies, CRO helps maximize revenue from existing customers.

• Increases Customer Lifetime Value (CLV): CRO segments customers, identifies the most loyal ones, and guides every group towards products of their interests to ultimately increase CLV.

• Gains Data-driven Insights: CRO operates analytically, meaning these insights are used to refine marketing strategies.

The Key Metrics of CRO

CRO is made up of a multitude of metrics to craft the most ideal version of a website. Here are some elements to keep in mind before implementing a CRO tactic:

• Conversion rate: the percentage of visitors who complete a desired action.

• Click-through rate: the percentage of visitors who follow a series of links or CTAs.

• Bounce rate: the percentage of visitors who click off a website with little to no interaction.

• Abandonment rate: the percentage of visitors who abandon their carts without completing the purchase

• Average order value: the average amount spent on an order.

AI and eCommerce: How Are They Linked?

In these days and ages, you don’t need to be a tech-savvy individual to know about AI. The use of this rapidly growing technology is apparent in every part of life, and for eCommerce hustlers, it is an undeniably helpful tool.

The numbers don’t lie, either. As reported by Bloomreach, more than 25% improvement in customer satisfaction, revenue, and cost reduction is recorded, and 84% of eCommerce businesses consider AI their top priority. More and more online merchants are harnessing the best of this prevalent technology no matter where they are in their eCommerce journeys, which further proves that AI is making waves in every industry. In regard to CRO, the AI-powered tools are specifically designed to scrutinize every number about user interaction on your site and compile a comprehensive data list. Instead of manually studying a vast amount of statistics, the machine will gladly shoulder all the hard work for you. As a result, it can predict future behavior and make proper adjustments to boost the man of the hour: conversion.

Understanding AI Applications in CRO

Personalized User Experience

Create a tailored user experience for each customer with machine-learning technology, making them feel seen and boosting the retention rate.

Conversion is directly linked to UX - if one does not have an enjoyable shopping experience on your site, there is a low chance of them performing the desired action. Through the use of AI CRO, the spotlight is all on your customers, which makes UX personalization one of the most prominent applications. Every detail on your website or landing page will go through examination, from the layout, homepage banner, product menu, and navigation system to page speed and checkout page. AI-driven CRO also segments users based on demographics, location, shopping history, and the like to deliver the most suitable experience to their liking. While this sounds like a hefty amount of work, an encompassing AI tool is all you need to take care of the whole thing from A to Z.

Our recommendation: Nosto - an AI-powered personalization app for all your eCommerce needs.

Optimized Product Search and Recommendation

You can’t risk having a prospect in your store but losing them due to a confusing navigation system, especially regarding product search and recommendation. With AI CRO, that problem is a thing of the past. A simple tool will guide you towards useful features such as dynamic filters, natural language processing (NLP), personalized product recommendation, as well as image and voice search. These elements are easy to incorporate but can elevate your user experience tremendously, thus leading to positive conversion growth.

Our recommendation: Searchanise - an AI-backed tool with advanced features to streamline your buyers’ shopping journeys.

Virtual Assistants and 24/7 Chatbots

Be at your customers’ command by utilizing an AI virtual assistant and chatbot for your eCommerce business.

Top-tier customer support is key, but having an around-the-clock human assistant might be a challenge, especially for businesses with limited spending budgets. What if we told you there is an affordable, accessible, and effective solution? You guessed it: an AI virtual assistant and chatbot deservingly takes this MVP title. With the plus points being 24/7 support, proactive interaction, and a handy multi-channel integration, this technology is proven to have been a helping hand to online merchants. Whether you are time- or budget-constrained, a trustworthy AI assistant tool is definitely worth a try.

Our recommendation: Tidio - a multi-language AI customer service app for your website, email, and social channels.

AI-Driven Pricing Strategies

The price is right, but only with a well-thought-out strategy. While small-scale businesses can take on this task manually, larger companies are leaning towards the use of AI, understandably so. Taking demand, user behavior, as well as competitor pricing into consideration, a typical AI pricing tool can monitor, adjust, and forecast product prices that are the best matches for your brand. As opposed to a limited amount of data gathered by a built-in tool, AI takes it up a notch by analyzing an immense set of data to come up with the best price recommendations. On top of that, the utilization of A/B testing is another efficient addition to determine the best pricing points for conversion.

Our recommendation: Intelligems - runs A/B pricing tests using machine-learning technology for a fast and accurate analysis.

Predictive Analysis and Data Insights

We are all aware of one thing that AI excels at: processing data. The data-analyzing capability of a machine is nothing short of impressive, and it gets to shine the brightest when it comes to improving predictive analysis for business owners. Be ready to 86 all the guesswork, as AI tools are able to perform customer behavior forecasting, sales forecasting, market trend forecasting, pricing forecasting, customer retention strategy, fraud detection, etc. Since it is a machine, this information is processed and studied based on real data, making its prediction all the more accurate. That said, it is important to try your hands on different tools at first to pinpoint the best one instead of wholly trusting one app and risking time and effort.

Our recommendation: Triple Whale - an AI-powered, foolproof data analysis tool that provide insights to manifest brand growth.

AI-Generated Marketing Content

Make AI work for you by generating fast and engaging marketing content.

Marketing can make or break your brand, especially with eCommerce businesses that are finding their footing in the industry. The rule of thumb is to create authentic and engaging content that aligns with your mission. That said, we understand that a large number of sellers don’t possess enough time or resources to produce quality marketing materials all the time, hence the expected use of AI. Everything surrounding copywriting, blog posts, email campaigns, social media posts, SEO-optimized content, media optimization, and so on can get a boost via AI; just make sure that you have a QA human to proof-check before publishing to avoid producing inadequate content.

Our recommendation: Copysmith - a trustworthy AI-focused content creation tool for businesses across different industries.

3 Crucial Mistakes to Avoid When Leveraging AI for CRO

AI-driven CRO does live up to its expectations, but that comes with several pitfalls that sellers ought to be wary of.

Do not neglect brand-to-buyer interaction, either via social media or traditional customer support outlets, no matter how convenient AI is.

Blindly Follow AI Recommendations

AI seems perfect, but it does make mistakes. Relying on it without human assessment is not a good call, especially with decisions that directly affect your business operation. When it comes to CRO metrics, AI could wrongly interpret a user behavior, thus suggesting irrelevant products. Similarly, an AI tool could misunderstand a prompt and produce content that goes against your brand’s mission (yikes!). Such cases are why it is paramount to have a thorough review before publishing or going with anything AI-generated.

Ignore Brand-to-Buyer Interaction

A 24/7 chatbot that offers instant support or an automatic comment reply on social media is great, but it can’t replace human-to-human interaction. While buyers seek answers to their problems, they also favor humanized service that offers real, genuine solutions, albeit via a screen. This is why you are tasked with using AI to enhance your brand only, as nothing beats a human touch, no matter how big your company is.

Neglect the Ethical Use of AI

AI works with diverse data, therefore, it can inherit algorithm biases. These dicey presumptions can lead to unfair recommendations, pricing, and especially discriminatory targeting. For instance, an AI tool can intentionally favor customers with high spending by giving them exclusive offers and support while neglecting new or low spending customers. These decisions solely stem from historical datasets without much diversity; that’s why it might not be the best course of action. Additionally, brands should be transparent with their buyers when it comes to the use of AI since hidden intentions can significantly hinder loyalty and trust.

The Bottom Line

CRO has remained an infallible practice for decades, and AI came along to put the cherry on top. By making yourself familiar with the nitty-gritty of AI-driven CRO, you are already contributing to the future of this concept, as well as eCommerce as a whole. When you are ready to level up your CRO game, make use of a reliable tool like Gemians - our latest solution for all your CRO needs to grow your business and become a pioneer in the industry.

FAQ about AI in CRO