AI driven strategies for peak sale season success

Aussie retailers are among the most concerned—second most globally—about consumer spending levels in the lead-up to the peak sales season. However, rather than wallowing, businesses are fueling this concern into resilience, preparation, and preparedness as Black Friday Cyber Monday (BFCM) draws ever closer. Shaun Broughton, Managing Director APAC at Shopify share strategies to help you make your sales season a winner.

Recent Shopify data from over 13,000 Shopify retailers, including more than 800 in Australia, highlighted that retailers are using AI to attract and retain customers through personalised, innovative approaches.

Streamlining the journey from discovery to checkout

According to the 2024 Australian retail report, nearly a third (32%) of shoppers would be more loyal if offered a seamless user experience. AI can streamline the shopping experience from discovery to checkout, which is especially valuable during high-traffic periods like Black Friday and Cyber Monday.

By leveraging AI-powered tools, such as personalised product recommendations or semantic search, merchants can suggest relevant items based on customer data and search terms, boosting both sales and customer experience

For example, Shopify’s semantic search improves the customer experience by making it easier for consumers to find what they’re looking for. Given that consumers interact with the search bar similarly to an in-person shopping clerk, it’s essential for the tool to do more than just match keywords. Shopify’s AI-powered semantic search feature can accurately interpret shopper intent to return more relevant and personalised results.

Using AI tools to attract and retain customers

Using AI tools to attract and retain customers is essential during peak periods like Black Friday and Cyber Monday, as it offers an ideal opportunity to engage new consumers and convert them into loyal shoppers.

By creating engaging marketing efforts and commerce experiences, retailers can enhance their chances of standing out from competitors. Currently, 25% of merchants leverage AI for targeted marketing initiatives such as product recommendations and social advertising, while 70% of retail business owners plan to prioritise social media engagement for customer retention. Additionally, 37% of retailers use AI features like background removal, image enhancements, and virtual try-ons to streamline these processes.

By harnessing AI, retailers can create personalised customer experiences and implement effective marketing strategies that connect the right customers with the right products, ultimately driving engagement and conversion rates.

AI to automate and streamline business processes

Implementing AI tools to automate and streamline business processes is like wearing the right shoes on a hike. While running a business without AI is possible, it’s much more challenging. AI provides a distinct advantage by simplifying and streamlining operations, to allow businesses to focus on growth.

Shopify found that 21% of Australian merchants are already leveraging AI to enhance their operations, including a quarter of retailers using it to help with data analysis and insights. Supporting functions like marketing forecasting and automated inventory management allow for real-time monitoring and restocking, reducing the risk of stockouts or overstock situations.

As the peak sales season approaches, adopting AI-driven strategies can be a game-changer for retailers. Integrating AI into a business enables retailers to stay ahead of shifting consumer spending behaviors, attract and retain customers, and navigate challenges like rising costs and supply chain disruptions.

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