Online shopping has exploded in recent years, offering some advantages over physical store visits, particularly in terms of stock availability, variety of products and sizes, and the overall speed of the shopping experience (even if your package may take some days to arrive). An increasing number of users are shopping online, leading platforms and retailers to enhance their services to offer a better shopping experience. One of the most important improvements has been personalising the customer experience; using data collected through cookies and user browsing histories, these platforms can identify and recommend products tailored to individual preferences.
Artificial Intelligence (AI) has been a paradigm shift in improving these personalisation systems. By analysing and understanding data, AI acts as the perfect tool to guide algorithms in identifying and prioritising user interests. Its impact is so profound that, according to the Hostinger Digital Transformation Observatory, a recent survey on consumer habits, 62.1% of Spaniards reported purchasing products or services online based on personalised recommendations aligned with their preferences and behaviour.
According to data from cloud-based software company Salesforce, AI has directly contributed to 17% of global purchases in the last seven weeks. Furthermore, “AI and agents will likely influence 19% of Cyber Week orders, accounting for $61 billion in global sales,” notes to the business.
Generative AI at the front and centre of online shopping
Moreover, personalised recommendations have become a global phenomenon with a major impact on consumer behaviour. A 2021 study by consulting firm McKinsey revealed that companies “excelling in personalisation” generate 40% more revenue from these efforts compared to their competitors who perform at an average level.
“Generative AI is now front and center in the online shopping process. It is helping to enhance the user experience, making decision-making easier, and also boosting sales for stores by highlighting products and services that would otherwise be harder to promote”, underscores Walter Guido, Country Manager of Spain and Italy at Hostinger.
While over 60% of platforms are tapping AI’s capabilities, users are far behind in their utilisation of AI. According to data from the Spanish competence authority, only 23.3% of users in the country used a chatbot, with 7% being frequent users. The study also notes that seven out of every ten Spaniards trust online shopping; however, only 25.8% prefer this method to offline shopping. One possible reason for this preference could be the existence of fake phishing websites (learn how to spot them).
Well-designed websites bring sales
By anticipating consumer needs and desires, online stores have become a must-use tool for businesses aiming to increase their competitiveness and attract younger, “mobile-first” consumers. In fact, 68.7% of Spaniards aged 18 to 75 reported purchasing a product or service online in the past month (based on an August survey). This figure has risen to 94.7% over the past year.
Furthermore, one out of every five Spaniards shop online at least once a week; “the fact that one-fifth of Spaniards shop online so frequently is a key opportunity for Spanish small and medium businesses (SMEs). Removing physical boundaries through digital transformation is the key to expanding their reach and improving competitiveness”, Guido explains.
