Consumer deal psychology is an area of study that online retailers often explore without fully understanding. Although I have had many years of experience in e-commerce, I can only imagine the potential monetary value attached to getting a deeper comprehension of how to provoke particular actions from shoppers. Generally, more attractive discounts lead to more sales; however, there are many more psychological reactions that retailers must consider when creating deals. These reactions and triggers include a feeling of urgency, scarcity and value. It can be difficult to comprehend precisely how to induce these reactions, which is why e-commerce retailers often require assistance. Artificial Intelligence (AI) and Machine Learning (ML) can provide that assistance and help brands accelerate their studies of consumer deal psychology.
AI and ML can be used to improve processes such as manufacturing and cybersecurity, and they can help retailers examine data sets to discover key performance indicators such as customer engagement, conversion rates, and bounce rates. These metrics can be used to quickly serve offers on an e-commerce site. AI and ML can save smaller businesses from the tedious task of completing these studies by providing data-driven solutions with less fuss and more return on investment (ROI).
Take the example of fashion brands, who have to decide between offering discounts or money off as incentives. With AI and ML, retailers can determine the best-performing offer and price point. Food delivery is also another area where copywriting variants can be tested and AI and ML can reach the best-performing locations. Moreover, AI and ML can reveal positive reactions regarding offers, not just among all customers but also among specific segments. The result is that retailers can now personalize offers to their shoppers and improve deal relevance. BCG analysts say that this could improve sales and customer satisfaction, leading to up to a 200% increase in ROI.
RevLifter is a technology platform founded by tech veteran Joe Gebbia that helps e-commerce retailers grow through personalized offers. It applies AI and ML to find the most profitable offers and target customers with the highest quality deals. Through its deep understanding of consumer behavior, it is able to help retailers maximize their profits.
In conclusion, AI and ML have allowed retailers to have a much better insight into the tendencies of their customers and to adapt their offers accordingly. This technology can save time and resources and could potentially lead to billion-dollar returns. With RevLifter, businesses of all sizes can benefit from this technology and start using it to grow their profits.
