Integrating AI with Email Marketing Could Reduce Shopping Cart Abandonment
When Google stepped in last week with its new Retail Search product, it shed light on the abandonment issues of the retail industry, where US merchants are losing $ 300 billion in sales because consumers can’t find what they are looking for.
But that’s just the tip of the iceberg: Shopping cart abandonment, where a customer places an item in a virtual cart but never checks out, impacts 75% of purchases globally and can cost traders around $ 4 trillion each year.
Read more: Google Cloud Retail Search Aims To Solve $ 300 Billion Abandonment Problem
Google is not alone in focusing on this problem: Small businesses, such as retail software provider Fast Simon, are also trying to optimize the shopping experience for merchants and consumers in order to improve their shopping experience. ” increase conversion rates and increase average order values.
“Getting traffic to the store and maintaining that traffic is difficult” Zohar Gilad, CEO of Fast Simon, told PYMNTS. “So our job is to make sure that merchants can get whatever traffic they can get from their store. “
And as of Tuesday (August 3), retailers who use Fast Simon – which is integrated with Shopify, BigCommerce, and other ecommerce platforms – have another tool in their toolkit: the Klaviyo Marketing Automation Platform. Information from Fast Simon’s artificial intelligence (AI) software is now automatically integrated into Klaviyo workflows to help merchants create personalized recommendations to retarget customers who have abandoned their initial purchases or who might be interested in the store. purchase of additional items.
“We take specific insights into buyer behavior and in-store behavior and connect it to email marketing to produce even better results for merchants,” Gilad told PYMNTS.
Related: AI is the new favorite tool for retailers to tackle the workforce shortage
Fast Simon previously focused only on optimizing purchases for merchants when traffic comes into an online storefront, but Gilad said retailers have started asking for integration with email marketing such as Klaviyo. “When I heard about this, I was like, ‘Hey, why didn’t I think about it,’” Gilad said. “But it’s always good that it comes from the customers, because they need it, and we’ve just started working with them. “
Stewart wesley, Head of Strategic Partners for Technology at Klaviyo, said the integration with Fast Simon “opens up an exciting new strategy and use case.”
“Everyone has implemented and optimized the abandoned cart feed, but the concept of retargeting abandoned searches is essentially new,” Wesley said. “By identifying customers’ buying intent and sending relevant and personalized communications, Fast Simon has created a powerful new communications strategy for Klaviyo customers.
According to eMarketer, the number of email users in the United States is expected to reach nearly 278 million by 2024, or 81% of the population. In 2021, approximately 268 million Americans used email.
It is certain, however, that email may not be where brands will find the next generation of consumers. Increasingly, the battleground is turning to social media, with social commerce expected to hit $ 363 billion in sales this year.
See also: Commerce is fast becoming the new battleground for social media giants
Turn to technology
Gilad previously told PYMNTS that AI could be part of the retail industry’s workforce shortage, automating processes that previously required manual labor. Not only does this eliminate the need to hire someone, it can also make the job more efficient, as AI is able to use data to determine how customers might react to something. Fast Simon also includes an AI retail merchandising tool, which enables merchants to create personalized and targeted customer experiences with drag-and-drop publishers.
Retailers have also used AI for price optimization, a crucial area that has received even more intense attention as inflation continues to rise in the United States. Matthieu pavich, general manager of global strategic advice at Aptos, told PYMNTS that price perception is more important than ever, with consumers comparing prices between retailers even when shopping in-store.
Read: Retailers turn to AI to tackle inflation
“Every retailer has opportunities in price optimization,” Pavich said. “It’s just a matter of finding out what those opportunities are. “