New data shows that customers trust AI referrals more than Google search results when shopping online, converting at almost three times the rate.
Marketing intelligence specialist Lebesgue analysed data from over 35,000 online sellers and brands using Shopify, and found that referrals from AI tools achieve an average 3.6% conversion rate across the board, compared to 1.23% for Google search.
AI-referred visits also deliver approximately 30% higher revenue per session (calculated by dividing total revenue by the number of sessions) compared to traditional search.
Wake-up call for brands
Commenting on the fact that customers using AI to shop demonstrate much higher intent than those using Google, Josip Begic, co-founder and CEO at Lebesgue, described this as a “wake-up call” for brands and retailers, many of whom are still basing their ecommerce marketing strategies around maximising clicks and traffic volume.
“With AI, the persuasion happens before the click,” he said. “As inbound traffic volumes continue to increase, this shift will be crucial. The brands that attract the highest-value pre-qualified leads will be those that are most visible across all the locations AIs look at, like reviews, third-party content, and forums.”
AI is changing the playing field
For retailers, the news that AI delivers three times the conversion rate of traditional search is highly significant, particularly as Lebesgue’s findings dovetail with new research revealing that smaller ecommerce businesses are finding it harder to stand out in crowded online marketplaces.
This is something that could shift as AI changes the way that consumers discover products and complete purchasing journeys, with brands that build this into their marketing strategies from the offset likely to be most successful in this volatile and highly competitive environment.
“Ultimately AI platforms aren’t just another referral source, they represent a new approach to decision-making on the part of consumers,” Begic said. “If brands don’t adapt how they measure and prioritise it, they will miss a significant part of the opportunity.”
Originally published on InternetRetailing