{"id":22901,"date":"2024-04-24T09:49:50","date_gmt":"2023-10-02T17:02:00","guid":{"rendered":"https:\/\/www.bloomreach.com\/library\/why-you-need-composable-commerce-to-get-the-most-out-of-ai"},"modified":"2024-06-11T18:12:52","modified_gmt":"2024-06-11T18:12:52","slug":"why-you-need-composable-commerce-to-get-the-most-out-of-ai","status":"publish","type":"library","link":"https:\/\/www.bloomreach.com\/en\/blog\/why-you-need-composable-commerce-to-get-the-most-out-of-ai","title":{"rendered":"Why You Need Composable Commerce To Get the Most Out of AI"},"content":{"rendered":"<p>AI\u2019s been the buzzword of the year (and will remain a hot topic for years to come), and for good reason. In commerce specifically, AI has proven to be useful in <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/ai-in-action\"><u>enhancing the customer experience<\/u><\/a> throughout the entire shopping journey while making businesses more efficient.&nbsp;<\/p>\n<p>So, with the recent spotlight on AI technology, organizations everywhere are scrambling to answer the question: How can we use AI for their commerce experiences?<\/p>\n<p>That\u2019s where a <a href=\"https:\/\/commercetools.com\/blog\/whats-composable-commerce-and-why-does-it-matter-your-questions-answered\" target=\"_blank\" rel=\"noopener\"><u>composable commerce<\/u><\/a> architecture can help. In our guide, created in partnership with composable commerce platform <a href=\"https:\/\/commercetools.com\/\" target=\"_blank\" rel=\"noopener\"><u>commercetools<\/u><\/a>, you\u2019ll learn more about what composable commerce is and how it can help you get more out of AI for your business.&nbsp;<\/p>\n<h2>An Overview of Composable Commerce&nbsp;<\/h2>\n<p>Before delving into composable commerce, it\u2019s important to first understand where ecommerce businesses started from. In the early days of ecommerce, companies favored monolithic, one-size-fits-all architecture because it got them up and running quickly with easy access to all classic ecommerce features in one place.&nbsp;<\/p>\n<p>However, because the customer-facing front end and the commerce-driving back end were so intrinsically linked and inflexible, any changes or updates to the ecommerce system required heavy IT and developer involvement, which led to backlogs and slow rollouts.&nbsp;<\/p>\n<p>Then, as the digital landscape started quickly evolving and more channels were added to the shopping journey (e.g., email, SMS, social media, etc.), monolithic architectures became increasingly unwieldy and were unable to keep up with modern customers. It was clear that a single vendor couldn\u2019t provide all the solutions necessary to meet the rapidly changing consumer demands and behaviors in an omnichannel world.&nbsp;<\/p>\n<p>And that brings us back to composable commerce. <strong>A composable commerce approach allows businesses to assemble best-in-class technologies from various vendors, and then compose (i.e., customize) them to meet their unique business needs.<\/strong> In this way, you can create a truly cohesive <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/composable-commerce-understanding-the-anatomy-of-the-e-commerce-ecosystem\"><u>ecommerce ecosystem<\/u><\/a> that gives customers what they want (and need) from an online shopping experience with a flexible, scalable, and agile tech stack.&nbsp;<\/p>\n<p><img decoding=\"async\" alt=\"Definition of composable commerce\" src=\"https:\/\/www.bloomreach.com\/wp-content\/uploads\/2024\/05\/commercetools-edge-summit_definition.jpg\" \/><\/p>\n<h3>The MACH Angle&nbsp;<\/h3>\n<p>One of the challenges of assembling your technology stack based on best-of-breed solutions, though, is knowing which ones to pick. That\u2019s where the <a href=\"https:\/\/machalliance.org\/\" target=\"_blank\" rel=\"noopener\"><u>MACH Alliance<\/u><\/a> comes in. This not-for-profit, vendor-neutral industry body finds the best enterprise technologies that adhere to specific standards:&nbsp;<\/p>\n<ul>\n<li><strong>Microservices <\/strong>\u2014 Individual pieces of business functionality that are independently developed, deployed, and managed, allowing for maximum flexibility<\/li>\n<li><strong>API-first<\/strong> \u2014 All functionality is exposed through an API so that you can tie two or more applications or services together&nbsp;<\/li>\n<li><strong>Cloud-native SaaS<\/strong> \u2014 This software-as-a-service uses the cloud to full advantage, going beyond storage and hosting to include elastic scaling and automatic updates&nbsp;<\/li>\n<li><strong>Headless<\/strong> \u2014 The front-end user experience is decoupled from the back-end logic, giving you complete freedom and agility in framework and programming language&nbsp;<\/li>\n<\/ul>\n<p><img decoding=\"async\" alt=\"Definition of the MACH Alliance\" src=\"https:\/\/www.bloomreach.com\/wp-content\/uploads\/2024\/05\/commercetools-edge-summit_mach.jpg\" \/><\/p>\n<p>Companies that are <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/mach-alliance\"><u>part of the MACH Alliance<\/u><\/a> have been vetted to ensure they can provide the scalability and flexibility needed to navigate a changing commerce landscape. Make sure you check out MACH-certified technologies to get the best composable experience possible.&nbsp;<\/p>\n<h2>How AI Factors Into Composable Commerce<\/h2>\n<p>So, what does AI have to do with composable commerce? Consider the fact that <a href=\"https:\/\/venturebeat.com\/ai\/92-of-businesses-use-ai-driven-personalization-but-consumer-confidence-is-divided\/#:~:text=View-All-,92%25-of-businesses-use-AI%2Ddriven-personalization,but-consumer-confidence-is-divided&amp;text=According-to-a-recent-report,driven-personalization-to-drive-growth.\" target=\"_blank\" rel=\"noopener\"><u>92% of companies<\/u><\/a> are looking at AI for personalization, and that data-driven personalization can deliver <a href=\"https:\/\/www.invespcro.com\/blog\/data-driven-marketing\/\" target=\"_blank\" rel=\"noopener\"><u>5-8x the ROI<\/u><\/a> on marketing spend. That means you\u2019ll need to adopt AI technology if you hope to keep up with consumer expectations around personalization and efficiency.&nbsp;<\/p>\n<p>In a composable commerce framework, it becomes considerably easier to integrate AI into your tech stack because you can integrate AI applications with ease and try them out without disrupting your daily operations. You can start small or completely replatform \u2014 either way, you get to choose the right AI-driven technology to help you get a leg up in the current marketplace instead of waiting for your dev team to overhaul your monolithic architecture.&nbsp;<\/p>\n<p>That agility enables your organization to deliver more seamless and personalized experiences for your customers.&nbsp;<\/p>\n<h2>AI Use Cases in Composable Commerce<\/h2>\n<p>We\u2019ve all seen <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/how-to-use-chatgpt-for-e-commerce-examples-and-prompts\"><u>ChatGPT<\/u><\/a> in the news, and while content generation is a great way to use AI, it\u2019s definitely not the only one. Here are some common <a href=\"https:\/\/machalliance.org\/content-hub\/the-benefits-of-integrating-generative-ai-within-the-mach-ecosystem\" target=\"_blank\" rel=\"noopener\"><u>AI use cases<\/u><\/a> that you can add to your organization with composable solutions:&nbsp;<\/p>\n<h3>Content Generation&nbsp;<\/h3>\n<p>Let\u2019s start with the easy one. Content generation has been one of the most common use cases for <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/what-is-generative-ai\"><u>generative AI<\/u><\/a>, and for good reason. AI can help generate ideas, write marketing copy and product descriptions, and more \u2014 all within seconds.&nbsp;<\/p>\n<p>Adding solutions that <a href=\"https:\/\/www.bloomreach.com\/en\/news\/2023\/bloomreach-launches-ai-content-generation-for-email-sms-and-push-notifications-with-chatgpt-integration\"><u>integrate with ChatGPT<\/u><\/a> or other generative AI tools will give your teams the ability to scale up quickly and be more efficient. It\u2019s also useful for creating variations for A\/B testing.&nbsp;<\/p>\n<p><img decoding=\"async\" alt=\"Example of using generative AI for email marketing content generation\" src=\"https:\/\/www.bloomreach.com\/wp-content\/uploads\/2024\/05\/generative-ai_email.jpg\" \/><\/p>\n<h3>Product Recommendations<\/h3>\n<p><a href=\"https:\/\/www.mckinsey.com\/capabilities\/growth-marketing-and-sales\/our-insights\/the-value-of-getting-personalization-right-or-wrong-is-multiplying\" target=\"_blank\" rel=\"noopener\"><u>71% of consumers<\/u><\/a> expect companies to deliver personalized interactions, and they get frustrated when it doesn\u2019t happen. That means it\u2019s no longer enough to send a generic blast of product recommendations to your entire customer base \u2014 you need to use AI to deliver <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/ai-personalization-5-examples-business-challenges\"><u>truly personalized recommendations<\/u><\/a> at scale.&nbsp;<\/p>\n<p>By collecting and analyzing vast amounts of data, AI can make relevant recommendations in real time, resulting in 1:1 personalization that simply isn\u2019t possible to do manually.&nbsp;<\/p>\n<h3>Site Search and Merchandising<\/h3>\n<p>Your website is another great way to personalize the shopping experience. Whether your site visitors like to use the search bar or simply browse, you can use AI-driven composable commerce product discovery solutions to address their needs.&nbsp;<\/p>\n<p>Too often, site visitors try using search functionality only to find irrelevant, or even worse, null results. That\u2019s because traditional site search often uses simple keyword matching, which can lead to a broader set of results that don\u2019t quite match the search intent. Or, if the product names and descriptions don\u2019t match the query exactly, it can lead to no results showing up. This leads to a frustrating experience that can drive your potential customers away.&nbsp;<\/p>\n<p>But with <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/the-ai-search-for-commerce-guide\"><u>AI-powered search<\/u><\/a>, you can deliver more tailored results to search queries. This is made possible through natural language processing (NLP) and semantic understanding, which can break down search queries to understand each part and how they relate to one another. For example, a search for \u201cchocolate milk\u201d should show different results than a search for \u201cmilk chocolate.\u201d You can also utilize AI to <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/how-to-automatically-personalize-your-search-experience-in-bloomreach-discovery\"><u>automatically personalize<\/u><\/a> other aspects of your search results, such as the product images or the types of products.&nbsp;<\/p>\n<p><img decoding=\"async\" alt=\"Example of AI personalizing search results\" src=\"https:\/\/www.bloomreach.com\/wp-content\/uploads\/2024\/05\/automatically-personalize_shoes.jpg\" \/><\/p>\n<p>On the merchandising side, you\u2019ll want an AI-powered solution that can automate manual tasks and free up your merchandisers to <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/the-art-and-science-of-using-ai-in-merchandising\"><u>focus on more important tasks<\/u><\/a>, such as setting the right <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/2022\/search-and-merchandising-post-holiday-retrospective\"><u>boost and bury rules<\/u><\/a> so the AI can better address seasonality or timeliness, cater to global vs. local trends, and highlight specific attributes.<\/p>\n<h3>Inventory Management<\/h3>\n<p>Managing inventory levels is an excellent way to manage costs and risk for ecommerce businesses. Tools that leverage AI can help with demand forecasting, where you analyze historical sales data (among other factors) to provide accurate predictions for future shipments.&nbsp;<\/p>\n<p>You can also integrate AI with supply chain systems to automatically order new stock and optimize inventory. This helps reduce waste, prevent out-of-stock results, and boost efficiency.&nbsp;<\/p>\n<h3>Loss Prevention<\/h3>\n<p>Chargebacks, fraudulent activity, and <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/e-commerce-returns\"><u>ecommerce returns<\/u><\/a> can result in huge losses for your company. To address these issues, AI solutions are a great fit \u2014 they can look at customer behavioral data and transactions to identify patterns and find potential fraudulent activity. AI can also automatically assign risk scores based on previous behavior to help you flag high-risk customers.&nbsp;<\/p>\n<p>For product returns, AI can help optimize the shopping process to proactively address why people are returning items. For example, if your software detects that someone\u2019s buying multiple items in different sizes, you can automatically display a sizing chart to help them choose only the one they need.&nbsp;<\/p>\n<p><img decoding=\"async\" alt=\"Example of using AI to show a size guide to reduce ecommerce returns\" src=\"https:\/\/www.bloomreach.com\/wp-content\/uploads\/2024\/05\/commercetools-edge-summit_size-guide.jpg\" \/><\/p>\n<h3>Chatbots<\/h3>\n<p>AI-powered chatbots represent a new way to engage your customers. Unlike traditional chatbots, which use predefined rules and responses, AI chatbots use <a href=\"https:\/\/www.bloomreach.com\/en\/blog\/conversational-commerce\"><u>conversational commerce<\/u><\/a> to drive more natural interactions. You can see this in action to some degree with ChatGPT already, but there\u2019s a lot of potential for new applications, including <a href=\"https:\/\/www.bloomreach.com\/en\/products\/clarity\"><u>shopping-as-a-service tools<\/u><\/a> that can guide your customers through an entire shopping journey \u2014 all automatically and in real time.&nbsp;<\/p>\n<p>With a composable commerce approach, you\u2019ll be able to quickly adopt any new conversational commerce solution and get an edge over your competitors.&nbsp;<\/p>\n<h2>Bringing AI and Composable Commerce Together With Ease&nbsp;<\/h2>\n<p>We\u2019ve talked about why composable commerce is necessary for modern ecommerce, as well as how AI can craft better experiences across the entire customer journey. But there\u2019s still another challenge: If you\u2019re haphazardly bringing together various point solutions, your data may not properly connect and you\u2019ll end up with disjointed customer experiences. For example, if a customer already ordered a product on your website, it\u2019s not ideal to send an email the next day recommending the same product.&nbsp;<\/p>\n<p>With so many ways that AI can integrate into your ecommerce ecosystem, it can be overwhelming to know where to start.&nbsp;<\/p>\n<p><img decoding=\"async\" alt=\"All the ecommerce channels that AI can improve or optimize\" src=\"https:\/\/www.bloomreach.com\/wp-content\/uploads\/2024\/05\/ai-circle.png\" \/><\/p>\n<p>That\u2019s why it\u2019s so crucial to find the <em>right<\/em> composable solutions for your organization. With the combination of <a href=\"https:\/\/commercetools.com\/\" target=\"_blank\" rel=\"noopener\"><u>commercetools<\/u><\/a> and <a href=\"https:\/\/www.bloomreach.com\/en\"><u>Bloomreach<\/u><\/a>, you\u2019ll be able to cover a wide range of ecommerce use cases without worrying about not having unified data or having the most advanced AI technology.&nbsp;<\/p>\n<p>As a founding member of the MACH Alliance, commercetools serves as the perfect foundation to build your <a href=\"https:\/\/commercetools.com\/composable-commerce\" target=\"_blank\" rel=\"noopener\"><u>composable commerce tech stack<\/u><\/a> on top of. With modern development building blocks in a true cloud-native platform, you\u2019ll be able to launch your ecommerce experiences much faster while also saving on IT costs. Plus, you can build out a <a href=\"https:\/\/commercetools.com\/features\/frontend\" target=\"_blank\" rel=\"noopener\"><u>front-end storefront<\/u><\/a> and add <a href=\"https:\/\/commercetools.com\/features\/checkout\" target=\"_blank\" rel=\"noopener\"><u>checkout processes<\/u><\/a> as well to power your online business.&nbsp;<\/p>\n<p>Then, add Bloomreach \u2014 which is also MACH-certified \u2014 on top of commercetools to cover the other aspects of your ecommerce business. With <a href=\"https:\/\/www.bloomreach.com\/en\/products\/discovery\"><u>Bloomreach Discovery<\/u><\/a>, you get AI-powered product discovery, including personalized site search, intelligent merchandising insights, and automated SEO. The AI is trained on over 13 years of ecommerce data, resulting in one of the most robust datasets out there. This gives you an immediate advantage right from the start (instead of waiting for a pixel to learn), and drives <a href=\"https:\/\/visit.bloomreach.com\/search-impact-validation-bloomreach\" target=\"_blank\" rel=\"noopener\"><u>faster ROI<\/u><\/a> than any other product discovery solution on the market.&nbsp;<\/p>\n<p><a href=\"https:\/\/www.bloomreach.com\/en\/products\/engagement\"><u>Bloomreach Engagement<\/u><\/a>, meanwhile, unifies your customer data, so that you can connect your campaigns across every channel. With a powerful <a href=\"https:\/\/www.bloomreach.com\/en\/products\/data-engine\"><u>customer data engine<\/u><\/a> that drives real-time personalization that\u2019s consistent across channels, you never have to worry about providing an irrelevant experience for your customers.<\/p>\n<p><img decoding=\"async\" alt=\"The ecommerce use cases you can cover with commercetools and Bloomreach\" src=\"https:\/\/www.bloomreach.com\/wp-content\/uploads\/2024\/05\/commercetools-edge-summit_solutions-v2.png\" \/><\/p>\n<h2>Embracing the Future of Ecommerce<\/h2>\n<p>The best part about using commercetools + Bloomreach is that it\u2019s completely composable. With monolithic platforms, you have to undergo a costly and time-consuming replatforming process before you can use them. But with composable commerce, you can start small by adding in the most urgent solutions you need and then growing from there.&nbsp;<\/p>\n<p>That means you can start embracing innovative AI technologies <em>today<\/em> with minimal effort and risk. With AI solutions evolving at an unbelievably fast pace, it\u2019s imperative to get on board with AI before you get left behind.&nbsp;<\/p>\n<p>Ready to get started with composable commerce and AI? Read up on some <a href=\"https:\/\/commercetools.com\/resources\/whitepaper\/how-to-compose-your-commerce-in-2023\" target=\"_blank\" rel=\"noopener\"><u>best practices for composing your commerce<\/u><\/a>, then check out the various <a href=\"https:\/\/www.bloomreach.com\/en\/products\/loomi\"><u>AI use cases<\/u><\/a> available right now for your business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>AI\u2019s been the buzzword of the year (and will remain a hot topic for years to come), and for good reason. In commerce specifically, AI has proven to be useful in enhancing the customer experience throughout the entire shopping journey while making businesses more efficient.&nbsp; So, with the recent spotlight on AI technology, organizations everywhere [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":21924,"template":"","ew-regions":[],"ew-solutions":[],"library_type":[513],"library_blog_tag":[370],"industry":[],"channel":[],"topic":[],"class_list":["post-22901","library","type-library","status-publish","has-post-thumbnail","hentry","library_type-blog","library_blog_tag-headless-commerce"],"acf":{"library_blog_banner_content":"","library_blog_banner_cta1_text":"","library_blog_banner_cta1_href":"","library_blog_banner_cta1_new_tab":false,"library_blog_banner_cta2_text":"","library_blog_banner_cta2_href":"","library_blog_banner_cta2_new_tab":false,"library_blog_banner_bg_color":"#EAF7FE","library_blog_banner_cta_text_color":"#FFF","library_blog_banner_cta_bg_color":"#019ACE","library_blog_banner_cta2_text_color":"#000","library_blog_banner_cta2_bg_color":"#FFF","library_blog_chatgpt_content":"","library_blog_chatgpt_cta_href":"","library_blog_chatgpt_cta_text":"Ask ChatGPT"},"_links":{"self":[{"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/library\/22901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/library"}],"about":[{"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/types\/library"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/users\/16"}],"version-history":[{"count":0,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/library\/22901\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/media\/21924"}],"wp:attachment":[{"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/media?parent=22901"}],"wp:term":[{"taxonomy":"ew_regions","embeddable":true,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/ew-regions?post=22901"},{"taxonomy":"ew_solutions","embeddable":true,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/ew-solutions?post=22901"},{"taxonomy":"library_type","embeddable":true,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/library_type?post=22901"},{"taxonomy":"library_blog_tag","embeddable":true,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/library_blog_tag?post=22901"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/industry?post=22901"},{"taxonomy":"channel","embeddable":true,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/channel?post=22901"},{"taxonomy":"topic","embeddable":true,"href":"https:\/\/www.bloomreach.com\/en\/wp-json\/wp\/v2\/topic?post=22901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}