Why AI recommendations are becoming ecommerce’s most valuable source of traffic
When a trusted friend recommends a product or service to you, it can alter the way you think about the potential purchase. You tend to lower your guard, with the knowledge that some of the filtering work has already been done on your behalf.
This is particularly true when that friend understands your tastes and priorities, and how much you’re looking to spend; the recommendation carries weight before you even visit the website or look at the product page. By the time you click, a large part of the decision has already been made.
Now there is evidence that AI recommendations can have a similar effect on consumers.
We recently analyzed web traffic and conversion data from more than 35,000 ecommerce brands using Shopify and it revealed something significant: referrals from AI tools such as ChatGPT are converting at an average rate of 3.6%, compared with 1.23% for traditional Google...
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