In the futuristic sci-fi thriller Minority Report, Tom Cruise’s character walks through a shopping mall equipped with retinal scanners that instantly display holographic advertisements tailored to his preferences and desires. The intrusion is both unsettling and remarkably credible. That day has finally arrived, starting in e-commerce.

AI enhances personalisation across various e-commerce domains, including traditional e-commerce, social commerce, retail media, and quick commerce. In e-commerce, AI-powered recommendation systems analyse vast amounts of customer data, such as browsing history, purchase patterns, and demographic information, to deliver highly personalised product recommendations tailored to each individual’s preferences.

Brands should develop a strategy to capture a share of the $6.9 trillion global e-commerce sales. With the explosive growth of Large Language Models (LLMs), AI has emerged as the buzzword of the decade, promising revolutionary changes across industries. This is particularly evident in e-commerce, where AI offers the enticing potential for hyper-personalised experiences that can significantly enhance customer satisfaction and loyalty. 

However, while e-commerce offers convenience and a vast selection of products, it lacks the personal touch and face-to-face interactions found in traditional brick-and-mortar shopping. It also poses a challenge for even the most tech-savvy shoppers. Confusing descriptions, inaccurate dimensions, and generic sizing charts make online shopping feel more like a home DIY project than a pleasant experience. According to the Baymard Institute, 70% of online shoppers abandon their shopping carts.

As demands for digital experiences grow, e-commerce must adapt customer experiences to meet expectations. Although in-person engagement takes the place of digital engagement, consumers favour a ‘human’ experience over a computer experience.

This is where the concept of human commerce comes in, which places the customer at the heart of the e-commerce process. It’s not just about transactions; it’s about relationships and understanding the needs and desires of those who shop and buy from us.

HUMAN COMMERCE

Human commerce refers to the intersection of humanity and business. It is a concept that explores how companies can become more human-centred and improve the lives of people who shop and buy from them. In the past, “commerce” was viewed simply as a transactional process where businesses and consumers exchanged money for something of value. However, with the rise of technology and the changing needs of consumers, companies are starting to realise the importance of humanising their approach and tailoring shopping experiences around consumers – especially loyal ones.

Human commerce is not merely about making a sale; it involves cultivating a relationship with your customers. According to a survey by McKinsey, 87% of consumers consider ethical and trusted reputation as significant factors in their buying decisions. It entails understanding their needs and desires and creating a product, service, or experience that fulfils them. Research by Gallup supports this notion—companies with an engaged workforce are 21% more profitable. Building strong employee relationships contributes to the development of superior products.

Human commerce is essential today. A recent study by PwC found that consumers are tired of interacting with bots, and over 82% of respondents said they would pay more for one-on-one human interactions in their shopping experiences. Additionally, there are several other reasons to humanise shopping experiences.

1. It helps businesses understand their customers more effectively. By adopting a human-centred approach, companies can gain insights into what their customers want and need, allowing them to create products or services that fulfil those needs.
2. Human commerce enables businesses to build trust and rapport with their customers. Customers are more likely to trust companies that adopt a human-centred approach and are transparent about their policies and practices. Such policies and practices may include reviews, data security, or customer service, to name a few.
3. Human commerce enables brands to distinguish themselves from competitors. In today’s competitive market, businesses must differentiate themselves and create unique, memorable experiences; otherwise, customers’ “shiny object syndrome” may divert them from making repeat purchases.

ADDING “HUMANITY” TO THE E-COMMERCE EXPERIENCE

An AI chatbot can serve as an authentic conduit for brands and the genuine human voice behind them. As the technology develops, the focus is on making interactions between chatbots and customers increasingly lifelike. Bots are becoming more human and responsive in their interactions. Humanised AI can transform customer interactions into genuine exchanges between clients and company representatives. 

The key to this is predictive analytics – algorithms that enable AI to engage in authentic, responsive conversations with your customers. This results in an AI demonstrating genuine empathy and responding to increasingly nuanced variations of anticipated customer inquiries.

1. Conversational Commerce Software: The foundation of a human-first approach hinges on creating a truly “human” experience. This necessitates fostering direct and meaningful connections between shoppers and brands. Solutions like Humankind empower businesses to provide real-time text support, facilitating seamless interactions between customers and remote concierges.
2. Personalised Recommendations: Personalised product recommendations are a powerful tool for creating a humanised shopping experience. By analysing a customer’s browsing behaviour and purchase history, businesses can suggest items that align with individual interests and needs, enhancing relevance and satisfaction.
3. Cross-Platform Engagement: Engaging customers across various platforms fosters personal connections. While social media platforms like Facebook, Instagram, and Twitter present valuable opportunities, SMS remains a prominent channel. As consumers are seldom without their phones, SMS offers a reliable, direct communication line that keeps businesses closely linked to their customers.
4. Zero-party Data Collection: Zero-party data—information that customers intentionally share, such as preferences and interests—plays a vital role in creating personalised experiences. By leveraging this data, marketing, sales, and concierge teams can customise interactions that resonate deeply with each customer. The result is an eCommerce experience that feels personal, relevant, and memorable.

Humanising e-commerce customer journeys helps online retailers connect emotionally with their customers and meet their expectations. Adding a ‘human’ touch to the experience empowers e-commerce brands to establish a personal connection with consumers. A Nielsen study reports that in 56 countries, 92% of customers rely on recommendations from family and friends for e-commerce products. According to a Shopping Research Report by Capital One, cross-border e-commerce accounted for only 22% of all e-commerce sales in 2023 and is projected to grow 219% faster than the overall e-commerce sector by 2028.

STRATEGIES FOR HUMANISING E-COMMERCE

Businesses should take into account consumers’ cognitive, behavioural, and emotional responses throughout the digital journey. When this journey is positive and relatable, people are likely to return for more. According to Forbes, 70% of consumers are willing to switch brands for better product quality.

1. Personalised Communication: As customer experience involves various communication touchpoints, it is crucial to assure customers that they are engaging with a trusted and reputable brand that values them. Handwritten notes, small gifts, welcome emails, and a distinctive brand voice contribute to humanising communication. Abercrombie & Fitch, a well-known American retailer of casual clothing, gained further popularity after launching its plus-size jeans line, Curve Love. The brand recognised the preferences and expectations of modern customers and demonstrated that real people work behind the brand to fulfil customer desires. Today, the brand offers plus sizes in many other garments besides jeans.
2. Enhance Social Media Presence: Engaging with customers on social media allows online retailers to present their brands in a friendly, enjoyable, and welcoming environment. Interacting with customers in the comments section or on their profiles adds a personal touch. Lighthearted content, positive customer testimonials, and prompting customers to share photos with hashtags convey the impression of real people using the products and services. Brands establish a personal connection through a trusted face, such as a celebrity or influencer, on social media. Under Armour, a well-known sports apparel and accessories brand, collaborated with Dwayne “The Rock” Johnson, who boasts 302 million Instagram followers, to promote the brand. The promotion was successful; the Project 1 Sneaker sold out within 24 hours, and the collaboration hashtag #ProjectRock has been used 262,000 times on Instagram.
3. Include Engaging Stories and Experiences: Merging entertainment with the e-commerce customer experience enables customers to connect with brands easily. Providing helpful information (such as how to use it, how it is made, where it is made, and the concept behind a product) encourages people to engage with the brand. Entertaining content, including trivia, fun facts, and quizzes, enhances the brand’s appeal to consumers.  An excellent example is Walmart. A Walmart associate recently turned 101 years old, and the chain shared the news on Facebook, inviting all customers to celebrate the occasion. By publishing a feel-good story about how they value their associates and celebrate their birthdays, Walmart made its customers feel connected as part of the Walmart family.
4. Leverage Emotive Storytelling through Videos: Video is an ideal medium for creating an emotional connection with customers. Snapchat reports that Millennials and Gen Z spend over an hour watching videos on social media apps each day. In e-commerce, using emotive storytelling through video helps increase sales and click-through rates. Additionally, when consumers watch demonstrations on how to use, install, or assemble a product, they gain a better understanding. Ralph Lauren offers the RL Virtual Experience, allowing customers to virtually explore the renowned RL outlets. The apparel company has also launched a first-to-market virtual scan feature in partnership with Snapchat, enabling customers to scan the logo on any medium to unlock AR (Augmented Reality) experiences. This digital solution allows customers to shop and enjoy an in-store experience from the comfort of their homes.
5. Establish Relationships through Customer Issues: Customer responses, particularly complaints, are crucial to building relationships. Empathising with customers, addressing their requests, and seeking feedback allows them to perceive the human element behind the brand. Responding to feedback promptly and enhancing products and services based on their input fosters tight-knit communities.

As we move forward, it’s essential to remember that the goal of AI in marketing shouldn’t solely be to sell more effectively; it should also focus on creating genuine value for consumers. When applied ethically and responsibly, AI can provide marketing experiences that are not only personalised but truly personal – experiences that respect individual preferences, protect privacy, and positively impact people’s lives.

The path ahead is challenging, yet filled with opportunities. By navigating this route thoughtfully and ethically, we can harness the power of AI to foster an innovative and responsible marketing future that serves both businesses and consumers. The journey towards ethical AI in marketing is not merely a technological challenge but a human one—and it’s a journey we must embark on together.