AI Influence On CRO: Pros And Cons
Artificial Intelligence (AI) is changing the world around us and influencing everything we do both privately and professionally. The new form of digital intelligence is omnipresent as you can find it almost all fields of life and business.
The entire AI software market is already generating $15 billion worth of revenue globally, but the figures are yet to grow and reach as much as $118 billion in the next five years. In such circumstances, it’s not surprising to learn that AI is also making a big impact on conversion rate optimization (CRO).
The two processes match perfectly and it’s fair to say that AI is revolutionizing the way website administrators approach CRO. But the process is not lopsided after all as we can identify a few problems of using AI to optimize conversion rate. In this post, we will show you the pros and cons of AI’s impact on CRO.
AI and CRO Defined
Before we show you the list of advantages and disadvantages, we need to dig a little deeper and explain the very concepts of AI and CRO.
By definition, AI represents the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. This means that the smart system is able to perform cognitive actions such as independent learning, speech recognition, problem-solving, and so on.
On the other hand, CRO is the systematic process of increasing the percentage of website visitors who take the desired action. This also includes all sorts of activities such as:
- Conducting a purchase through your website
- Adding products or services to the shopping cart
- Subscribing to an email newsletter
- Creating a personal account
The Pros of AI in CRO
Now that we’ve clearly defined both terms, we can move on to the main part of our post. We selected the seven most important benefits of using AI in CRO, so let’s check them out one by one.
The most important of AI in CRO comes in the form of personalization. Using AI tools, webmasters can now easily discover users’ preferences and respond by creating customized offers. You can analyze the entire history of customer’s interactions with the website and create a tailored offer accordingly.
This is exactly what essay writing services like Assignment Geek do with their audience – they research prospects’ former requirements to come up with the best proposal for each client individually. An even more famous example comes from Netflix, a streaming platform which skyrockets conversions using a highly customized recommendation system.
2. Data Analytics
The second benefit goes hand in hand with the first one. AI allows you to research the existing market needs, analyze target audiences, predict future trends, and do all other sorts of data analytics in real-time. The AI-powered system is so powerful that it can quickly run A/B tests and compare different website elements so as to discover the elements which have the highest conversion potential.
3. Eliminating human errors
With AI at your disposal, CRO becomes more accurate and efficient in the long run. This is the complete opposite of the traditional business in which companies used to rely on man made predictions to attract and win over new customers.
Jake Gardner, a writing expert in charge of digital marketing, says that AI has enabled website owners to make decisions based on real-life facts: “Instead of using your guts or feeling to draw conclusions and make decisions, you can now make data-driven moves and boost conversion rates.”
4. Avoiding repetitive tasks
Manual data analysis and reports demand a lot of time and effort. It’s a time-consuming process which can disturb you and your team members, so you won’t be able to focus on core responsibilities. Thanks to AI, the problem becomes obsolete. The system takes over successfully and automates most of your work, so you don’t have to spend hours every day doing boring and repetitive tasks. You can focus on creative thinking instead and start generating more ideas to increase the number of website conversions.
5. Real-Time Price Adjustments
As a super-efficient data analytics tool, AI is capable of augmenting online sales and helping digital sellers to maximize the profit. How come?
Well, it’s a matter of real-time price adjustments. You get to see it every day when browsing through online commerce websites, but the best example comes from airline companies. They use AI to analyze supply and demand on the go, so it’s possible to adjust prices in a way that guarantees the highest revenue.
6. Improved customer service
Conversion rates strongly depend on the overall user experience, with customer service being one of the fundamental elements of the consumer journey. AI makes this process simpler and better with chatbots.
It’s an automated customer service system that can answer the vast majority of users’ questions. Besides that, chatbots are available around the clock – studies show that 64% of users say 24-hour service is the best chatbot feature.
Various companies use chatbots to serve website visitors and they shared their impressions with us: “The best thing about chatbots is the deployment because you can set up and launch the system within hours – it will be fully functional instantly.”
It is clear that AI helps websites to boost conversions, but it is also necessary to mention that the whole system allows you to reduce operational costs. You don’t have to waste time on data analytics anymore and you don’t have to hire as many customer service agents. AI is active 24/7 and it doesn’t take sick leave. You can rely on it 100% and watch the costs shrink in a way you couldn’t even imagine.
The Cons of AI in CRO
AI can obviously improve CRO in many different ways, but we still need to mention the negative impact it might have on the whole process. The list of downsides is much shorter, but it doesn’t mean you ought to neglect it. Let’s take a look:
1. No jobs for traditional employees
Automation and around the clock service do come with a negative side effect since a lot of people can lose their jobs due to the impact of AI. Employers will certainly love the cost-reduction effect, but you shouldn’t neglect the fact that many quality professionals will be left without work because of AI’s advanced capabilities.
2. Lack of human interaction
A lack of human interaction is yet another consequence of AI deployment. Namely, automated procedures and robot-to-customer interactions always lack that much-needed human touch, which can be a problem for brands who want to build long-term relationships with their clients. The distance between businesses and customers can become far too long, so it’s important to keep the balance between old and new CRO techniques.
3. You still have to control AI
AI is as good as you allow it to be because it requires fresh and accurate data to perform flawlessly. If you keep feeding it with up to date information, then you can count on superior services. But if you don’t pay attention and neglect AI tools, it will start giving you irrelevant inputs and slow down conversions.
AI is changing the world around us and CRO is by no means an exception here. The two concepts supplement each other and there are many reasons to believe that the new form of intelligence is improving website conversions.
But there are a few setbacks to consider as well, so we wrote this post to show you the pros and cons of using AI for CRO purposes. Do you think that the benefits of AI in CRO outclass the downsides?
Michael Gorman is a software development specialist and experienced freelance writer who offers assignment help to students. Michael is a renowned app developer who has developed plenty of applications for health and fitness tracking. He is also one of the best paper writers in the UK. Being interested in the area of software development, Michael has shared useful insights on how individuals and agencies can develop quality apps in various publications. Feel free to contact him via Facebook or check his Twitter.