Many small and midsize business leaders assume that artificial intelligence is a landscape reserved for tech entrepreneurs, 20-year-old startup whiz kids, and MIT students. But because of the increased availability of AI tools and data, the benefits of AI for businesses now apply to all companies, and especially to e-commerce businesses.

Like all digital businesses, e-commerce companies have tons of data on their hands. So when they are trying to market themselves, they can use AI that leverages this data to promote proactive decision-making using information about who customers are and what they’ve done before.

For example, one of the key use cases and benefits of AI is its ability to predict customer churn. Using past churn data, an AI model can create a dynamic customer profile of those most likely to get bored or disengaged in the next week or month.

These insights are essential, and you can use them to devise churn-management and win-back strategies and make smarter e-commerce marketing communication decisions.

How AI Enables Proactive E-Commerce Marketing Decisions

We know that AI marketing can be hugely beneficial for e-commerce platforms, but how can AI help e-commerce leaders market to their fullest potential? Here are a few ways:

1. Personalization

Currently the new frontier of e-commerce, personalization helps consumers differentiate among brands. AI is just another way e-commerce businesses can modify and bolster their marketing approaches.

AI marketing solutions can help you personalize outreach, products, mediums, and timing so your company can break through the chaotic crowd of social media and email. It does the heavy lifting, so you can automate targeting and get on with the creative side of e-commerce marketing.

2. Decreased Churn

Because AI is so good at predicting churn, it can help you steer clear of one of the most prominent digital pitfalls for SMBs: keeping the customer pipeline busy.

Sometimes, e-commerce brands see half of their customers buying once and never coming back. AI can help you create churn management strategies that identify which customers will never come back, who will most likely will, and what to offer those in the middle

3. Next Best Action

There are so many strategies you could use, but they all cost investment of budget and time. So which do you choose to be most productive: Do you offer a discount to loyal shoppers? Should you send an SMS to that shopper who has items in their basket?

The answer to all of these questions is, well, it depends. Different people will react differently to these tactics. AI’s insights allow you to develop the best tactic for each user.

AI in e-commerce can provide a systematic way to improve your marketing approach. Though AI was initially reserved for big data science teams, its benefits have also democratized to smaller businesses and e-commerce as the technology has progressed.

Proactive decision-making in marketing can be a challenging prospect. With marketers and AI working together, though, choices become more manageable and customers become better engaged.