Why it's Worth Looking at the Conversion Rate

For many e-commerce managers, the conversion rate is the key performance indicator for success. However, despite high marketing investments and modern shops, the values often stagnate at 1 to 2 %.

Why is this? Because the path from the first click to the purchase is full of breaks. GenAI closes precisely these gaps - customised, data-based and scalable. In this article, we show how GenAI has a measurable effect on the conversion rate and which benchmarks are realistic.

‍

1. Conversion Killers in the Classic Shop Setup

Before we describe the leverage, it's worth taking a look at the stumbling blocks:

Users cannot find what they are looking for (search intention ≠ filter system)

Product descriptions are generic or incomplete

No real advice, no guidance

Overload due to too many options without guidance

Breaks between marketing, shop and customer service

This is precisely where GenAI comes in - not with individual optimisations, but by continuously improving the customer journey.

‍

2. How GenAI Specifically Ensures Higher Conversions

a) Better product advice = fewer abandonments

A conversational advisor replaces endless clicking with a dialogue-based experience: Customers are guided, understood and advised - in real time.

Effect: Increased relevance of the product from the first click → higher probability of completion.

b) Clearer, more emotional product texts = more trust

Texts that are tailored to target group needs and search patterns increase the willingness to buy. GenAI enables the automation of these texts with simultaneous individualisation.

Effect: Building trust + better visibility in search engines = more qualified traffic and conversions.

c) Adaptive filters = faster decisions

Instead of 20 filter options without explanation, GenAI recognises what users mean - and displays relevant features in a context-sensitive manner.

Effect: Less frustration, more ‘aha’ moments, shorter path to the product.

d) Fewer queries = fewer abandoned purchases

GenAI answers uncertainties directly - whether about material, compatibility or application.

Effect: certainty, clarity and trust → conversion probability increases.

‍

3. Which Conversion Lifts are Realistic?

The effects depend on the use case and the maturity of the existing platform. The following benchmarks can be derived on the basis of Frontnow projects:

Use case

Uplift of the conversion rate

Conversational Advisor

+40-70 %

GenAI-generated product texts

+15-30 %

Dynamic filters/guided selling

+20-35 %

FAQ bots & support automation

+10-20 % (indirect)

Example: A shop with 1.5 % basic conversion can increase to 2.5-3 % through the combination of GenAI advice + improved texts + dynamic filters. With 1 million visits per month, this corresponds to over 10,000 additional transactions.

‍

4. What do You Need to get Started?

Clear target definition (e.g. reduction of the bounce rate or advice on products requiring explanation)

Selection of a focussed use case (quick win!)

Access to product data + integration into existing systems

Pilot phase with defined KPIs (conversion, bounce, dwell time)

Tools such as the Frontnow Advisor enable a modular start - from MVP to full-scale implementation.

‍

5. Why Now is the Right Time

The use of GenAI in e-commerce environments is becoming the new standard. Those who start today can differentiate their experience and escape comparability with competitors. At the same time, operational costs are reduced because less manual maintenance is required and processes can be automated.

The combination of a better experience + increased efficiency is rare - GenAI delivers both.

‍

Conclusion: Conversion is not a Coincidence, but a System

GenAI is changing the logic of shop optimisation: away from selective hacks and towards a journey that adapts to users. Investing in conversational interfaces, smart filter logic and automated content generation will not only increase conversions, but also strengthen customer loyalty and brand perception.

‍Next article: In the article “Is Generative AI Safe and GDPR-Compliant?”, we take a look at the topic of data protection and show why GenAI can be used in enterprise setups in a GDPR-compliant, secure and trustworthy manner.