Banyan - September 2023

Algolia Launches Merchandising Studio With AI Shopping Features

eCommerce

Algolia has launched an artificial intelligence (AI)-enhanced, data-driven Merchandising Studio that delivers improved data and visibility functionality and provides enhanced recommendations.

This new offering eliminates the need for merchandisers, digital marketers and eCommerce professionals to manually merchandise their category and product landing pages, the company said in a Monday (Jan. 15) press release.

“Algolia’s new Merchandising Studio enables an innovative blend of top-tier human expertise and cutting-edge AIcapabilities that create delightful, interactive shopping experiences curated with precision,” Algolia CEO Bernadette Nixon said in the release.

The new Merchandising Studio includes a Revenue Analytics feature that provides merchandisers with key business metrics like average order value (AOV) and revenue per search/category that can help them assess their business decisions, according to the release.

It also includes an Unlimited Events Retention feature that can deliver years’ worth of events data to give merchandisers insights into seasonal trends and other historical context, the release said.

Other features that are new to the Merchandising Studio include a Comparison Mode that provides instant side-by-side comparisons of results for any query, Data-Driven Personalized Recommendations that facilitate the implementation of personalized recommendations tailored to individual shoppers, and Image-Based Recommendations that reveal other products that match the ones in which shoppers have shown an interest, per the release.

“As Algolia continues to pioneer advancements in AI-driven eCommerce solutions, these new capabilities underscore the company’s approach to empowering merchandisers with zero code, 100% business user-friendly capabilities that not only meet but exceed the expectations of today’s digital shoppers — all built on a powerful AI platform,” the press release said.

As consumers come to expect personalization, merchants are enhancing their capabilities to cater to the unique needs of individual customers.

PYMNTS Intelligence has found that generative AI is a tool that can revolutionize retail by deepening customer engagement and personalizing shopping.

For example, when clothing retailer Everlane implemented Algolia’s AI Search capabilities, the retailer experienced a 45% reduction in “no results” returns, a 5% uptick in conversions and an 8% improvement in click-through rates, according to “What Generative AI Has in Store for the Retail Industry,” a PYMNTS and AI-ID collaboration.