How AI Translates to Measurable E-Comm Growth

SymphonyAI's grocery e-comm study found that retailers can use AI to target shoppers at different points in their buying journey.

There’s room in consumers' digital carts – and hence room for bottom-line growth – for AI-driven omnichannel opportunities. That’s a key takeaway from SymphonyAI’s third annual grocery e-commerce study.

According to the latest research from the Palo Alto, Calif.-based predictive and generative AI SaaS solutions provider, retailers who use AI-based connected retail strategies can realize an 8% growth opportunity at a time and in an industry of tight margins. The study, based on an analysis of 72 million households and 1.3 billion transactions over a six-month period conducted earlier this year, showed that AI can be used to unlock more e-commerce revenue by reaching shoppers with demonstrated behaviors and preferences.

This year’s study pinpointed several areas of potential for retailers. First, there is a notable segment of possible new users, as 81% of new online shoppers are first-time customers with that retailer. In addition, online baskets among those shoppers are three times larger than in-store baskets and omnichannel customers have been shown to spend 15% more than single-channel shoppers.

Tapping into seasonal behaviors can also result in basket lifts. SymphonyAI’s analysts affirmed that people are more willing to buy online during the all-important fourth quarter defined by the holidays and retaining them after that season can lead to more than a 3% increase in e-commerce revenue.

Another avenue for e-commerce expansion involves using AI to recommend more products for customers who tend to have smaller baskets. According to the study, small basket transactions are still trending, and AI-based merchandising software can be deployed to encourage shoppers to add related items or products of interest based on past behaviors. Size is also a consideration when it comes to the actual products that shoppers click to add to their online carts. For example, digitally engaged shoppers may want to buy larger sizes of peanut butter but often look for smaller package sizes for accompaniments like jam and honey.

SympnonyAI’s study identified other pockets for omnichannel growth within categories, such as using AI to encourage online sales of organic products that are already popular in store and leveraging traditional brand loyalty in health and beauty segments.

Sonia Parekh, general manager of customer-centric retailing at SymphonyAI, said that the findings underscore the power of AI in advancing performance across the omnichannel. “The newest research from our in-house retail experts reveals the advantages of using AI insights to increase e-commerce revenue, both in the short-term and longer term,” she remarked.

More insights related to AI-driven opportunities within grocery – this time, related to AI and labor – will be explored during a Progressive Grocer webinar on Jan. 7. That online event features Manish Choudhary, president of SymphonyAI’s retail/CPG division, and David Glick, SVP of Walmart’s Enterprise Business Services.