Harnessing AI in Ecommerce: Insights from Rokt’s Srishti Gupta
Artificial Intelligence (AI) is revolutionizing businesses everywhere, driving unprecedented transformations in how companies operate. By automating complex processes, enhancing decision-making, and providing relevant experiences, AI is not only streamlining operations but also unlocking new levels of efficiency and innovation. Srishti Gupta, Chief Product Officer at Rokt, stands at the forefront of this revolution. As a respected expert and a prominent woman in STEM, Gupta shares her insights on harnessing AI to optimize the pivotal Transaction Moment—the point when a customer is ready to check out. In her recent interview for Rokt’s Beet.TV Leadership series, Gupta explains how brands can truly tap into AI’s power to create meaningful and relevant customer experiences.
Overcoming the paradox of choice
Today’s consumers face unprecedented amounts of options, and can often become overwhelmed by the plethora of choices available online. Gupta explains, “We find customers in this place where there’s a paradox of choice. There are just too many choices in front of them.” This overwhelming array of options can hinder decision-making, making it crucial for businesses to streamline the offers they present to only those that are relevant.
AI plays a pivotal role in addressing this challenge by intelligently gathering data and managing objectives to ensure that customers are only exposed to the messages most relevant to them. AI algorithms analyze vast amounts of data, including browsing behavior, purchase history, and real-time interactions, to discern patterns and preferences. By doing so, AI can streamline the decision-making process, presenting customers with curated offers that resonate with their immediate needs and interests.
Harnessing the power of first-party and derived data
Creating relevant customer experiences starts with understanding and utilizing two key types of data: first-party data and derived data.
First-party data refers to information that a company collects directly from its customers. This includes data points such as what items a customer has added to their cart, how often they shop, whether they use features like free shipping, and their personal details like name, email, and zip code. This data comes directly from the customer’s interactions with the company, providing a clear and accurate picture of their behaviors and preferences.
Derived data is information generated from analyzing customer behavior over time. This can include insights into how customers typically interact with various offers, which types of content or creatives they respond to, and the duration they spend engaging with different elements on a website. Derived data helps businesses understand broader patterns and preferences that might not be immediately obvious from first-party data alone.
Gupta elaborates, “Bring those things together, the first-party data as well as the derived data, and then the ML does its magic, which is actually making that decision in real-time.” By combining these data sources, AI can make instant decisions about what content to show to customers, ensuring that the offers are not only personalized but also contextually relevant.
AI is the future of ecommerce
AI is transforming e-commerce by enhancing relevance and optimizing customer engagement. Gupta explains, “To actually harness the power of this data, we need to make decisions in real-time.” Advanced AI algorithms can process vast amounts of data in milliseconds, delivering timely content that resonates with customers at the exact moment they are ready to engage.
One of the unique aspects of an AI-driven approach is maintaining a high threshold for customer relevance. Gupta notes that at Rokt, “We only show something if it’s net additive to the experience.” This means that if the likelihood of a customer finding an offer relevant falls below a certain threshold, nothing is shown at all. This approach maintains a seamless and unobtrusive customer experience, ensuring that only the most relevant offers are presented.
Embrace AI and relevance with Rokt
Srishti Gupta’s insights into the power of relevance, data, and AI offer a valuable framework for businesses to optimize their transaction processes. By harnessing first-party and derived data, making real-time decisions, and maintaining high standards for customer relevance, brands can enhance their e-commerce strategies and achieve better results. With Rokt’s powerful AI, built over the last 12+ years, we empower businesses to thrive in the new era of digital advertising.
To learn more about how Rokt can enhance your e-commerce strategy, visit our Rokt Ecommerce page.