2023 saw over 4,600 retail store closures in the U.S., up 80% from 2022. With more than 81% of the entire U.S. population shopping online and 14% of SMBs fearing that their technology is outdated, they must prioritize their e-commerce approach and leverage AI technology strategically. 20% of businesses have incorporated AI because of evolving customer expectations.
Although AI is predicted to handle 15% of all customer service interactions globally by the end of 2024, 80% of customers prefer businesses that provide personalized experiences.
“E-commerce is at the top of the list of AI-influenced industries as algorithms are constantly changing and transforming the way consumers buy and sell goods online,” explains Nik Stephney, Associate Director of Strategy and Content at Fullmoon Digital. “The online presence of smaller retail businesses has become saturated, and it is easy to get lost in the online market if they don’t have a strong, creative plan for digital presence.
If a customer feels an AI algorithm knows too much about them and worries their privacy has been violated, the business’s approach can backfire, and trust can be lost. 70% of consumers fear privacy and data security concerns with the overuse of AI. And, 54% of consumers are worried about losing the human touch in customer service.
Achieving the ideal equilibrium between personalized AI and avoiding AI overreach is crucial for a successful AI integration strategy.
These issues can be addressed through a solid marketing strategy that can bring more “humanness” to a brand and how it interacts with customers.
“An online presence provides significant advantages beyond just enabling sales. It allows businesses to track customer shopping habits, better understand their audience, and more effectively promote products using high-quality data insights,” says Nik Stephney.
Fullmoon Digital, founded by Derek Chew, a former early Yahoo! employee, is one of the few 100% independent digital marketing agencies in the United States. The firm is cross-functional, with deep experience in media planning and buying, digital consultancy, SEO, digital strategy, programmatic, analytics, performance marketing, paid media, social advertising, and creative.
