Some time ago, there were no clear-cut methods that could cause an increase in retail sales. Nowadays, the introduction of modern technologies is opening more and more ways of influencing the volume of revenue. IT solutions allow a buyer to search and quickly find the things they really need, thereby increasing the volume of consumption. In this article, we will discuss a method that will help to increase the average order value by 20%.
Categories, filters, and user requests
The division into categories was one of the very first methods of building a goods hierarchy. Each product was placed in one particular section, but this was not always convenient. Some people choose household appliances according to subjective parameters, convenient personally for them. Placing products in rigidly defined categories doesn't suit this type of buyer. For example, some users pay more attention to the design and harmonious appearance of each element in a room, rather than functionality. They usually choose a kettle or food processor that matches the color of their kitchen furniture or curtains.
In this case, additional filters come to the rescue, which allows buyers to select a product according to many criteria:
purpose of use;
This technology is more complicated, but carefully choosing filters is a better option than reading through the technical overview of each product. And such goods as clothing also have a visual component. In an online store, the size selector, a detailed description, and a large number of high-quality photos from different angles come to the fore.
Attempts to find the right product by a simple request were not always successful. But today, typing a few words are enough to get what you are looking for. In this way, you can quickly select clothing or equipment from a particular manufacturer and with specified parameters.
This is fueled by Artificial Intelligence which is now able to compare requests not only with product parameters specified in the text but also with images. As a result, a quick search without adding categories or filters has become possible.
The era of visual search
Having introduced Artificial Intelligence, the Forever 21 brand experienced a revenue growth of 20%. This growth is caused by the implementation of visual search in their mobile application. A tech startup from the United States has shown how Artificial Intelligence adapts to the human way of thinking - it understands how people describe goods.
The main feature of the Forever 21 visual search is that the parameters of a particular product are visualized as icons. By clicking on the corresponding icon, a person chooses a long or short skirt, shirt color, a bag of the desired style and brand. As a result, this process becomes quicker.
The search engine scans the photos, taking into account many graphic parameters, such as:
As a result, the average order value has increased by 20%, and the search has become intuitive. The language barrier is no longer critical, so it's easier for foreigners to choose a product. The time for the selection of products is significantly reduced, which allows customers to make a decision quickly.
Research says that if potential buyers fail to find the product they want in three clicks, in most cases they leave the site. Visual searching is able to solve this problem.
The online auction eBay went even further. Now, a user can share a photo from social networks in the marketplace application, and AI will immediately suggest similar products. It also includes a function that enables users to take a photo of the product and immediately receive information about its price, as well as see similar goods.
Another AI innovation that is just beginning to gain popularity is voice input. It is most convenient for physically challenged people. However, the vast majority of users still prefer typing: voice commands attract unnecessary attention, especially in public places, thus violating privacy.
Indeed, AI can significantly increase the average order value. It increases the interest and engagement of users by allowing them to select only suitable products with the right parameters. This results in increased sales and customer loyalty while keeping AI support costs low.
Of course, when considering the implementation of AI innovations, it is necessary to take into account the payback period of the main investment - investment in the development and integration of software. As a rule, neither online stores nor even large marketplaces have a sufficient number of available IT specialists for building software for the company's business needs.
In this situation, the optimal solution is outsourcing. Prices for IT outsourcing services may vary, but, as an example, you can take the price list of Andersen. You can calculate the costs of hiring a team or individual specialists right on our website. If you are not sure how many and what kind of specialists are required to implement your project, you can request a free consultation.