How Data and genAI Are Helping Retailers Boost Conversions in a Tough Economy

Why It Matters

These results demonstrate that AI‑enhanced data management can dramatically improve retail conversion efficiency and profitability, giving brands a competitive edge in a price‑sensitive market.

Summary

Retailers are leveraging data‑driven strategies and generative AI to plug funnel leaks and personalize experiences amid inflation‑driven spending constraints. A proof‑of‑concept with Salomon showed GenAI‑optimized product feeds boosted click‑through rates by 43%, conversions by 81%, revenue by 83% and more than doubled ROAS. Similar CRO initiatives, such as a "CRO Factory" for Hugo Boss and abandoned‑cart email/SMS tests for a UK electronics retailer, delivered 11‑22% uplift in conversions and a 72% increase in abandoned‑basket revenue. The rapid rise in GenAI‑generated traffic—up 4,700% in the U.S. and 1,200% in the U.K.—is prompting retailers to add Generative Engine Optimisation to their SEO playbooks.