A guide to increasing revenue and life-time spend using AI in e-commerce

AI is hot – but how do e-commerce apparel retailers help capitalize (and increase revenue) using AI solutions?

1. Personalized Recommendations

AI algorithms analyze customer data, such as browsing history, purchase behavior, and demographic information, to provide tailored product recommendations. By suggesting items that align with a customer’s preferences, retailers can increase the likelihood of additional purchases and upsells. Personalized recommendations enhance the overall shopping experience, fostering loyalty and higher spending over time.

Looklet’s answer to personalized recommendation, Shop the Look, gives your merchandising teams control over on-brand complementary item pairings displayed for consumers directly on any item’s product description page. Help inspire your customers to view styling suggestions while increasing conversion and total cart size.

2. Predictive Analytics for Inventory Management

AI-powered predictive analytics help apparel retailers optimize their inventory management. By accurately forecasting demand, retailers can ensure that popular items are consistently in stock, reducing instances of out-of-stock products that might lead to lost sales. This ensures a smoother shopping experience and encourages repeat business.

Looklet’s out of stock feature supports your inventory management processes by allowing low or out-of-stock items to be flagged for image re-styling so your customers always see images of only in-stock items. The garment attributes can then be analyzed to uncover consumer purchasing trends and refine inventory holdings.

3. Customer Segmentation

AI allows retailers to segment their customer base into distinct groups based on behavior, preferences, and purchase history. This segmentation enables targeted marketing efforts and personalized communication. Retailers can send tailored promotions, discounts, and content to specific customer segments, encouraging them to return and spend more.

By using the built-in data capture features of the Looklet Studio you can tag, segment and group garment buying patterns and use the information in a variety of ways to target and deliver intelligent marketing and merchandising plans.

4. Virtual Try-On and Augmented Reality (AR)

Apparel is the largest segment of all online shopping, however, most consumers still struggle with sizing, fit and color accuracy of their online purchases.

“Forty-two percent of online shoppers don’t feel represented by images of models, and fifty-nine percent feel dissatisfied with an item they shopped for online because it looked different on them” (source)

To address this frustration, apparel retailers are adopting AI-driven virtual try-on and AR technologies. This immersive experience not only reduces the likelihood of returns but also enhances customer engagement and satisfaction, potentially leading to higher spending over time.

The Looklet Dressing Room (try a demo here!) allows your customers to mix and match pieces of clothing for styling inspo, save to their own personal profiles and collects valuable information on a shoppers purchase, browsing, styling history that your business can leverage into buying and merchandising insights, both for individual consumers and customer personas.

In Summary 

By employing these AI-driven strategies, apparel retailers can create a more personalized, efficient, and engaging shopping experience that encourages customers to return and spend more, ultimately increasing customer lifetime value. To speak to a Looklet expert about how our advanced, automated photography solution could support your revenue goals simple email us at business@looklet.com

Sources & Suggested Additional Reading

1. Google Try On – Article 
   1. Quote: Thanks to machine learning and new visual matching algorithms, you can refine using inputs like color, style, and pattern.
   2. Quote: While apparel is one of the most-searched shopping categories, most online shoppers agree: It’s hard to know what clothes will look like on you before you buy them. Forty-two percent of online shoppers don’t feel represented by images of models, and fifty-nine percent feel dissatisfied with an item they shopped for online because it looked different on them than expected.
   3.  Now, thanks to our new virtual try-on tool on Search, you can see whether a piece is right for you before you buy it
2. The Impact of Artificial Intelligence – Widespread Job Losses and Economic Disruption – Forbes

Curious About Our Game-Changing Technology?

Discover how our AI powered e-commerce solution combines the best of both worlds: real and AI generated models, along with advanced virtual dressing room technology to enhance your digital dressing experience. If you’re interested in learning more about how we can support your brand, feel free to reach out to us through the ‘Contact Us’ form at the bottom of this page!