Are you discoverable to your AI empowered Customer?

Are you missing out on customer loyalty and new customers? The retail landscape is on the cusp of a monumental shift, driven by the rapid advancement of generative AI search platforms. These platforms are redefining how consumers discover and purchase products, and the implications for brands and retailers are profound.

Platforms like ChatGPT, Perplexity, and Amazon’s "Buy for Me" act as gatekeepers, handling price comparisons, product selection, and purchases without consumers interacting directly with retailer websites. This reduces visibility for sponsored listings and display ads, which are core to retail media revenue. But the impact on Retail Media is a separate article all together!

The Rise of AI-powered shopping

In the last week, OpenAI announced a significant update to ChatGPT Search. This new feature allows users to ask for product recommendations in a natural way, browse suggested products with pictures and reviews, and easily click through to stores to buy products—all without seeing paid ads or sponsored placements. Consumers are already embracing this seamless experience, with over a billion web searches conducted each week using ChatGPT. This statistic alone underscores the rapid adoption of generative AI tools as consumers' favorite shopping assistants.

Perplexity, another leading AI search engine, has also accelerated its push into ecommerce. Through a strategic partnership with firmly.ai, Perplexity now enables users to complete the entire shopping journey—from discovery to checkout—within its platform. Merchants can join Perplexity’s marketplace with minimal technical effort, retaining full control and revenue from their sales. Since the launch of its shopping feature, Perplexity has witnessed a fivefold increase in shopping-related queries, highlighting strong consumer interest in AI-powered commerce.

Amazon’s Innovative Move: Buy for Me

Amazon, the e-commerce giant, is not standing still. The company is testing a new AI feature called Buy for Me. This feature allows shoppers to buy items from other websites directly within the Amazon app if the product they want is not available on Amazon itself. This innovative feature keeps users engaged within the Amazon ecosystem while expanding their access to a broader range of products. For brands, this means increased exposure and seamless conversion opportunities, making it a win-win for both consumers and merchants.

Shopify’s AI integration: A game-changer

Shopify, a leading e-commerce platform, is also responding to this shift by integrating ChatGPT into its ecosystem. This integration provides merchants and shoppers with 24/7 AI-powered assistance, personalized product recommendations, and streamlined purchasing experiences. The goal is to make it easier for consumers to find and buy what they want, while helping merchants adapt to the new AI-driven search and shopping system.

The Convergence of AI and Ecommerce: A New Era of Consumer Behavior

AI-powered search and online shopping are converging, and platforms like ChatGPT, Perplexity, Amazon, and Shopify are leading this trend. Shoppers are increasingly gravitating toward conversational, personalized, and frictionless buying journeys powered by generative AI. For brands and merchants, the message is clear: to remain discoverable and competitive, it is imperative to adapt digital strategies for this new era of AI-driven commerce.

But what does this mean for retailers and marketplaces investing in Retail Media?

Discovering the shift in customer lifetime value and SEO impact

In the last six months, I have seen a big change in how brands are getting new customers. This is shown in their customer lifetime value (CLV) data. Traditional SEO strategies and ad spend for new customer acquisition are becoming less effective as consumers increasingly rely on AI-powered search and recommendation engines. This change is especially noticeable in countries like Australia, which uses the most AI search tools per person. In October 2024, 9News reported that over 38 million searches were made using ChatGPT and Gemini. Recent Cognizant research forecasts that by 2030, AI is expected to influence 55% of all consumer transactions in Australia.

Soon to be Revealed: Poppy AI

As I delve deeper into customer lifetime data and measure marketing impact with Woven Group, I see clear signals of a monumental shift in how products are discovered, and new customers are acquired. There are various solutions to help brands succeed in an AI-driven shopping world, but where do they start? How should brands measure their discoverability? Do leaders understand what needs to be done to address the change in their current and potential future AI-powered customers?

Four key areas to consider

1. Security and Discoverability: How closely are you working with your security team? If web crawlers are turned off, your brand, products and services are not discoverable. Ensure your website is accessible to AI search engines to maximize visibility.

2. Authenticity and Reviews: How often is your brand or offerings being mentioned authentically and reviewed? AI algorithms prioritize trusted sources. Encourage authentic user reviews and mentions to boost your brand’s credibility and discoverability.

3. Descriptive Content: How are your brand and products described? AI is seeking answers and needs descriptive content to find the answers concisely. Information needs to be easily found in well-structured formats, such as lists and tables.

4. Rich Content: Is there rich content in the form of video, audio, and images mentioning your offerings? AI is attracted to and learns from "multi-modal content," such as podcast mentions and user-generated videos. Diversify your content to enhance discoverability.

Understanding the Nuances of All Platforms

Different platform providers and versions have unique requirements and user bases. Familiarize yourself with the nuances of platforms like OpenAI/ChatGPT, Perplexity, Gemini, Claude, and the new players in the shopping agent market, such as those powered by marketplaces like Amazon. Each platform has its own strengths and user preferences and understanding these can give you a competitive edge.

Embrace the AI-driven shopping revolution

Just when you thought you were on top of the latest trends and AI, everything changed in an instant. This is a constant journey, but by knowing where to start and using AI, you can make your brand successful in the fast-changing retail world.

The future of retail is here, and it is powered by AI. As a retail and brand leader, the time to act is now. By embracing the AI-driven shopping revolution, you can ensure that your brand remains discoverable, competitive, and relevant in this new era. This is an incredible opportunity for startups and small brands who can adapt quickly, rising as these platforms grow.

I look forward to sharing more about how to navigate this transformative shift and the future of brand discoverability. Stay tuned for more insights and strategies to help you thrive in the AI-powered consumer era.

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