17th Jul 2018, author: Nick Holstein
Did you know that statistically speaking an estimated 70% or more of your eCommerce customers will abandon their carts rather than completing the checkout process? When you put this eCommerce statistic in perspective of the year over year phenomenal growth eCommerce has sustained, you start to see just how much more potential there is for eCommerce sales – but how do you recapture all of those potential sales that get lost in the check out process?
The North Face attempted to tackle this problem with an AI app called Watson designed to close the gap between online browsing and in store customer service – which often can help lead a consumer to purchase. While Watson might not have been the end all solution to the abandoned cart problem, it has taught us one important lesson; AI can be effective in easing the online shopping experience. Internal IBM data, who partnered with the North Face to create Watson, has shown us that customers spent an average of two minutes with Watson and suggested products had a 60% click through rate.
The North Face isn’t the only company looking to AI to try and help smooth the online shopping process, either. Online giants eBay and Pinterest have also incorporated AI into their site’s functionality – with Pinterest creating searchable image functionality last year.
More recently, analysis of Snapchat’s code reveals there’s a forthcoming team-up with Amazon to enable users to search for a product simply by pointing their phone at it—provided the product has an amazon listing.
So, even though there hasn’t been an AI solution that stopped a majority of eCommerce carts from being abandoned yet, it’s clear that AI will continue to play a role in increasing online customer satisfaction and confidence in online products, which in turn will increase the number of consumers who are reaching checkout completion on your site.