AI Boosts Grocery E-commerce Revenue by 8%: Study

A grocery e-commerce study from SymphonyAI uncovers a significant 8% growth opportunity for retailers who use artificial intelligence (AI)-based connected retail strategies.

“With a worldwide customer portfolio of hundreds of leading retailers using SymphonyAI connected retail products, we see first-hand the measurable impact of AI-based insights and actions to engage shoppers optimally across channels, boost basket size, and increase loyalty,” says Sonia Parekh, general manager of customer-centric retailing for SymphonyAI. “The newest research from our in-house retail experts reveals the advantages of using AI insights to increase e-commerce revenue, both in the short-term and longer term. They apply SymphonyAI connected retail with surgical precision to create powerful positive business impact.”

Key takeaways:

• 81% of new online shoppers are first-time shoppers with that retailer, and online baskets average three times larger than in-store.
• Converting single-channel shoppers to omnichannel shoppers in the fourth quarter boosts customer retention and drives revenue long after the holiday season. Fourth quarter in-store shoppers show more willingness to convert to online channel shopping than during other times of year, and retaining them post-holidays leads to a greater than 3% increase in e-commerce revenue.  
• Small basket transactions are booming, with growth areas including alcoholic beverages and baby products.
• Online shopper preferences for larger pack sizes vary by category, showing the need for tailored assortment strategies for increased sales. Smaller pack sizes are important options for shoppers in certain categories.
• In-store organic product sales are growing at 5.2%, outperforming online organic sales growth rates of 1.6%. Retailers can entice store-only shoppers into the online channel with targeted organic product placements and offers.
• AI-based insights reveal meaningful granular channel preferences by category.