What Businesses Can Learn from Google New Recommendations AI eCommerce Tool

One of the trends in eCommerce is the use of AI to create the most effective digital marketing strategies. AI can reduce human error and increase the efficiency of many operations. In addition, focusing on the customer and providing recommendations that are useful are also key approaches for success in an increasingly competitive online marketplace. Google’s new Recommendations AI eCommerce tool uses AI to allow any business to provide pinpointed, data-driven recommendations directly to visitors and can boost conversions and revenues.

What Is Google Recommendations AI?

Google’s Recommendations AI is currently available in beta to Google Cloud users. The tool suggests products that are most likely to appeal to specific customers through AI technology that analyzes customer data and makes personalized recommendations. Recommendations AI uses a consumers’ online purchasing history and metadata to provide relevant product suggestions.

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The technology was developed from “context hungry” learning models which were created through Google Brain and Google Research. Recommendations AI technology is a significant improvement over manual strategies because it can automatically draw and update insights for tens of millions of items. It can also correct for bias and handle seasonality.

Recommendations AI is able to formulate targeted product suggestions from incorporating metadata such as images, categories, product names, and other information and can grow conversions, revenue, and customer engagement.

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Businesses that use this technology can better control what customers see and create a variety of items that appear according to availability and custom tags. It can handle an international selection of products and provide useful recommendations in all phases, including on the homepage, while an order is being processed and at the shopping cart.

What Does This Technology Do for Businesses?

Google’s Recommendations AI focuses on the customer rather than just the product. When the customer is the center of the marketing strategy, he or she will feel valued and will receive suggestions that are truly useful.

In addition, when the customer acts on those recommendations and makes a purchase, a business is given further information that can translate into further well-informed recommendations and purchases. This is a kind of virtuous cycle that will lead to more conversions and sales.

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Another valuable lesson that can be used from this technology is the importance of processing customer data efficiently. Using data from several sources and updating it through AI rather than manually can create fully targeted recommendations that provide value to customers. This demonstrates that data-driven solutions are the only way to go when reaching customers and providing them with what they need.

The eCommerce environment was changing prior to the COVID-19, and the pandemic has accelerated the trend of more customers making basic purchases online. In addition, the COVID-19 crisis has hit the retail industry hard with many brick and mortar stores closing. This provides opportunities and challenges for companies and creates an intensely competitive environment where companies must reach their customers directly to influence their buying habits.

AI-powered customer insights can give a business significant clues to what their customers will buy next and help formulate effective recommendations. Using tools, such as Google’s Recommendations AI can increase conversions and revenue growth.