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E-merchandising software provides various optimization tools for e-commerce businesses to maximize profits for their online store. These tools can organize product displays, optimize searches, and provide personalized recommendations. The goal of e-merchandising software is to increase customer conversion and reduce cart abandonment while also encouraging a customer to purchase more during each transaction. Artificial intelligence plays a large role in e-merchandising, providing the tools to leverage past customer data and behavior to predict and influence future behavior.
Much like retail merchandising strategies that package and place items to encourage customers to purchase more or purchase certain items together, e-merchandising tools take those principles and apply them to an e-commerce setting. By also making it easier for customers to find exactly what they are looking for in an online store, customers are more likely to make a purchase.
Key Benefits of E-Merchandising Software
E-merchandising software will make your store’s content both easier to navigate and more attractive to potential customers.
Increased customer conversion — Customers who can easily find what they want are more likely to make a purchase, and so are customers who receive personalized recommendations. With e-merchandising software, your products can be presented in a way that encourages customers to buy more, in an expedited manner.
Reduced cart abandonment — A major problem that e-commerce businesses face is customers who place items in their cart but leave the site before purchasing them. With e-merchandising software, products can be presented in a way that makes them more attractive to customers (using data to determine what increases conversion) to reduce cart abandonment. The tool can also leverage data collected from customers and site visitors to improve the store over time.
Increased loyalty — Customers appreciate simple shopping experiences and personalized suggestions, so e-merchandising software can improve customer loyalty when used well. Some e-merchandising tools may even have built-in loyalty features such as accumulating points for an eventual discount or special gifts for subscribing to a newsletter that can encourage customers to return.
E-commerce business owners — This is the obvious application: those running an e-commerce business seeking to increase growth and improve sales. E-merchandising tools can certainly help with this when used correctly and expectations are tempered.
Marketers — Marketers can use e-merchandising tools to improve the presentation of their company’s or clients’ products online. By testing different approaches, they can determine which strategies work well with certain demographics and roll those changes out on a larger scale.
Product recommendations — Prominently featuring product recommendations is an effective approach to converting browsers into buyers. This can also be a good way to boost underperforming products or test display or visualization strategies.
Visual merchandising — When shopping online, how the product is represented in pictures and other visual means is all the customer has to go on when making a choice. E-merchandising tools may help adjust and test visual merchandising strategies to find the method that works best for your business and your customers.
Personalization — Every shopper appreciates personalized recommendations, and e-merchandising software provides the tools for online stores to offer product recommendations based on purchasing history and viewing history. This can increase conversion and loyalty, helping customers discover products they might not have found on their own.
Shopping cart recommendations — Much like personalized product recommendations, additional recommendations within a customer’s shopping cart can make for a quick and easy upsell as they are about to check out.
Data collection — Data is any business’ strongest tool, and e-merchandising can help your business collect data on customer shopping behavior as well as which merchandising strategies are beneficial.
Artificial intelligence — Artificial intelligence powers a variety of software, but e-merchandising can particularly benefit because of the technology's ability to create personalized recommendations. Using artificial intelligence, e-merchandising software can recommend products shoppers are likely to buy based on a variety of data collected by the tool. And as it continuously learns, the predictions will improve.