Commerce AI improves sales and customer engagement for Kitchen MLM

Lack of commerce experiences impact customer satisfaction

Ecommerce is the largest driver of sales and customers for businesses around the world. Product and service focused businesses today consider ecommerce as a competitive differentiation and so are the experiences delivered through the model.

A Kitchen MLM company in the US with an established ecommerce model still struggled with increasing number of support tickets and decreasing sales numbers. The company offered a premium range of cookware, small appliances, and cooking accessories. There was no question about the quality of products because in-store purchases were consistent. The company identified that the issue was with their commerce platform which could not accommodate the growing network of customers and distributors.

Upselling and cross-selling conversions were really low due to generic product recommendations. Distributors fixed prices and ran offers on their replicated websites based on individual assumptions were clueless about product and pricing trends. Inefficient planning of inventory caused stockouts of top selling products and overstocking of non-moving items.

The processes of ecommerce, inventory, and distributor operations weren’t connected, and this cost the company opportunities for growth and engagement.

Lack of commerce experiences impact customer satisfaction

Commerce AI takes the spotlight

Setting up Commerce AI as the solution came after the company approached Epixel MLM Software seeking a feasible solution for all their existing concerns related to ecommerce. The company also requested that the integration of the new system should in no way impact the operations.

Our AI experts started from the ground up developing AIcustomized ecommerce features

that fit the Kitchen MLM business and the US market just right.

AI-powered recommendation engine

The company can plan and configure products that need to be promoted during specific time periods. The recommendation engine personalizes each recommendation to a customer based on their past purchases and browsing behavior. Complementary products automatically show up in a customer’s purchase journey making it easier for customers and improving AOV for the company.

The system senses peak sales periods and seasonal buying patterns to recommend offers and discounts for customers in various tiers.

Inventory and demand forecasting

Products stocks are maintained accurately by scanning the demand patterns over time. The automated inventory management system alerts the business in case of low stock for a particular product especially when in a high demand period. The system tracks real-time sales data, demand fluctuations, and regional market trends to help with stocking decisions.

Order tracking and management

The real-time order tracking feature considerably reduced support tickets by efficiently managing order processing and delivery. Each step in the order process is carefully monitored by the system and alerts sent to the concerned team in case of delivery delays or other supply chain issues.

Customers and distributors can track their orders from purchase to delivery with a delivery tracking link sent at the time of order placement. The system segmented shipping providers based on the promptness and success rate of order deliveries. The company can use the insights to optimize their supply chain process.

Real-time pricing and promotion management

Distributors get real-time updates on sales and product demand to optimize pricing and promotions. The system auto-adjusted promotions and seasonal offers based on product demand, customer preferences, and seasonal requirements.

Distributors can fix special prices for various customer segments based on their lifetime value, and markets according to the ongoing trends for a particular product.

Ecommerce dashboard

The dashboard accessible to distributors and admin displays order numbers, AOV, top performing products, and revenue. Distributors can track their individual sales and that of their downlines. A real-time order tracking bar shows recent orders and their status to ensure issues are seen and solved without delays.

The commerce dashboard generates AI-powered insights into customer preferences, buying behaviors, and engagement patterns. The data is restricted with role-based access. The dashboards analyzed and visualized customer data, performance metrics of products and distributors, and forecasted sales.

Communication center

Distributors and customers were connected on the Commerce AI platform through a communication center that helped the company in addressing customer queries related to products, offers, and orders. Automated order follow-ups and product reminders took customers back to abandoned carts and short-time product deals that improved AOV and ecommerce revenue.

Impacts brought by AI in the Kitchen MLM ecommerce business

AI-powered features brought a lineup of positive changes in the Kitchen MLM business. Ecommerce became one of the main revenue streams and customer retention channels for the company.

Personalized product recommendations and abandoned cart follow-ups improved AOV by an estimated 41%. AI-powered personalization on promotions and repeat order reminders were set to improve customer retention rates by 36% and customer satisfaction score (CSAT) by 41%.

Automated inventory management with AI capabilities was expected to improve inventory efficiency by 33% and lower issues related to unexpected stockouts and overstocking.

Insights and AI-guided decisions helped distributors in fixing the right pricing and offers for each customer and market. The confident set of distributors was set to see a productivity increase of 28%.

Product pricing decisions were more efficiently made with competitors and market analysis insights on the ecommerce dashboard. Insights on the dashboard helped the business make strategic decisions on product launches, promotions, and pricing in new markets.

Impacts brought by AI in the Kitchen MLM ecommerce business

Challenges we hurdled along the way

Setting up our Commerce AI for the Kitchen MLM Company did pose quite a few challenges. The US market, with strict regulatory bodies like FTC, demanded a system that is compliant and customer centric. We integrated an AI-powered compliance management system to moderate promotional content like product and earnings claims posted by distributors.

Data integration across ecommerce, CRM, and inventory systems had to be accurate without impacting performance. Automated data synchronization ensures real-time updates of all activities and accurate prediction of insights.

Personalization features needed customer data to process insights. This raised concerns on data usage and privacy standards. The company collaborated to receive clear consent from customers through instant consent recording during the registration process itself.

Expected Results

Increase in AOV

41%

Improvement in customer retention rates

36%

Increase in inventory efficiency

33%

Improvement in distributor productivity

28%

Increase in ecommerce revenue

38%

Improvement in CSAT scores

41%

Increased distributor satisfaction and trust

52%