Why eCommerce Stores need AI Chatbot and their Usecases in eCommerce.
The rise of generative AI has brought about a transformational development in the eCommerce industry. The influx of customer-centric generative AI tools like chatbots, product discovery, product-related content, and more and their tremendous adoption have caused the generative AI market to explode. According to Statista, the generative AI market is expected to reach $207 billion by 2030 with a CAGR of about 20.80%.
Generative AI focuses on creating content by analyzing various data points and utilizing advanced natural language processing along with machine learning algorithms. Ecommerce chatbots powered by generative AI algorithms can skyrocket your customer support efforts thereby leading to increased customer satisfaction and retention.
In this post, we will learn more about these eCommerce chatbots and how they can help you enhance your customer service initiatives.
Implementing AI chatbots for your eCommerce store provides you with an outstanding means of enhancing customer engagement. It offers you a competitive edge as it serves as a perfect tool for introducing conversational commerce to your eCommerce business.
Ecommerce chatbots are widely used for online messaging, automated messaging, voice assistants, and more. Here are a few reasons why these chatbots are a must for your eCommerce store especially for engaging your customers more effectively and growing your business.
- 24*7 availability - As AI chatbots can operate round the clock, you can offer support to your customers in different time zones outside your regular business hours without any hassles. This 24*7 customer support facilitates quicker interactions and enhances the overall experience your customers have with your brand.
- Proactive customer engagement - AI chatbots can be trained to initiate conversations with customers based on their purchase history, wish lists, browsing behavior, and more. AI chatbots can share personalized product recommendations, new product releases, details about ongoing promotions, and more to guide customers in their buying process thereby simplifying decision-making for them.
Further, AI chatbots can share real-time shipment-related information, such as order status, shipping details, and estimated delivery times with customers to build a sense of trust and boost customer satisfaction.
- Efficient query resolution - AI chatbots can handle customer queries and issues efficiently. By understanding the customers and their inquiries better, AI chatbots can offer accurate replies to their questions. This proactive query resolution creates a positive experience for the customers and reduces the likelihood of having dissatisfied customers. To sum up, AI chatbots elevate your customer support through continuous availability, better query resolution, quick response times, and personalized interactions. That being said, let us now understand how to integrate an eCommerce chatbot into your online store.
There are two ways to integrate a chatbot on your eCommerce website. The first is leveraging a third-party AI chatbot and the second is custom eCommerce chatbot development. As custom chatbot development is costly and time-consuming, most eCommerce businesses opt for third-party chatbot software for installing a chatbot on their websites.
Before we dive into the step-by-step guide for chatbot integration, let us understand the top technical considerations you need to pay attention to for seamless integration.
- Platform compatibility - The chatbot platform you choose must be compatible with your eCommerce website platform or technology, such as Shopify, WooCommerce, WordPress, and so on. As different platforms have specific requirements, it is crucial to research and explore integration possibilities beforehand.
- Integration methodology - Check how the chatbot software would integrate with your website. Most chatbot platforms offer APIs to ensure a seamless transfer of data between the chatbot and your internal systems.
- Integration with existing systems - Check whether the chosen chatbot tool will integrate with your other systems like CRM, email marketing software, inventory management tool, order processing platform, and more. This integration is necessary as you must offer accurate order-related information to your customers.
- Mobile responsiveness - Check whether the chatbot is mobile-friendly and works seamlessly across various browsers, devices, and screen sizes.
- Chatbot design - Understand if the chatbot platform offers customer-centric design. The goal is to make customer interactions as user-friendly and intuitive as possible. Moreover, the chatbot design must also align with your brand's aesthetics, tone, and style.
- Customer journey mapping capability - Check whether the software offers the feature to map out the entire customer journey. This feature will help you identify crucial touchpoints and deliver the right messages to boost your customers' shopping experiences. Human customer support flexibility - The chatbot tool must allow human takeover as and when required. It must allow you to clearly define the scenarios that require human intervention. Remember this transition must be smooth and must not cause any problems for the customers.
- Scalability - Check whether the chatbot software is equipped to handle the increased load as and when your website traffic and customer interactions grow.
- Security and compliance - The chatbot platform must offer transparency about handling customer data, order details, and other sensitive information. You must also ensure that the chatbot complies with the required regulations and data privacy policies.
- Performance monitoring - The chatbot platform must offer intuitive tools for tracking the performance of the chatbots.
Now that you know the important technical considerations, let us understand how to integrate a chatbot into your eCommerce store.
- Determine the specific goals and define the objectives of integrating a chatbot. Is it to deliver better customer support? Is it for sending personalized product recommendations? Is it for tracking orders? Identifying the purpose of chatbots helps greatly with the chatbot development process.
- Choose the right chatbot platform. Ensure that the chatbot aligns with your customer service objectives and fulfills all the technical considerations we mentioned above.
- Once you have chosen the best chatbot platform for your eCommerce store, it is time to map out the conversational workflows your chatbot must follow to deliver the right messages to your customers.
- After chalking out the workflows, the next step is to integrate the chatbot platform with your website by following the integration instructions shared in the software documentation. Once the integration is complete, place the chat icon on your website and inform your customers about the newly installed chatbot.
- You can then customize your chatbot to match your brand's style and tone and train it to assist your customers effectively. Leverage your chatbot's AI capabilities to enhance its understanding and response mechanisms. Ensure there is a seamless transition to a human live agent as and when required.
- Do not forget to test your chatbot extensively to ensure it responds correctly to various customer inputs. If you find any errors or glitches, modify your conversational flows to ensure correct messaging is delivered.
- Analyze your chatbot's performance regularly to ensure it works to the best of its abilities.
AI chatbots have truly become the game changers in the eCommerce industry. It has profoundly impacted customer service and sales with its instant and accurate responses.
Chatbots can handle common customer queries efficiently thereby freeing up your human support agents' time to focus on more complex customer issues. You can thus allocate human resources to focus on other important tasks while this automated customer support takes care of mundane work. This significantly reduces operational costs as you no longer have to hire additional customer support professionals to keep up with larger customer query volumes.
AI-powered chatbots analyze customer data, their buying behavior, preferences, and more to offer them personalized assistance. This data can be utilized to recommend complementary products for cross-selling and upselling. Thus, driving higher average order volumes and increased sales.
Chatbots can actively seek feedback from customers after a purchase. You can use this information to understand customer satisfaction levels, identify areas for improvement, and refine your offerings. Chatbots also offer valuable data-driven insights into customer behavior and pain points allowing you to make informed business decisions.
Due to their innate ability to provide personalized customer support, they are considered to be a valuable asset in this competitive eCommerce industry.
Let us now understand how to use chatbots to boost your customer engagement.
Provide real-time assistance to customers by answering their queries and other FAQs. Initiate conversations with them based on their activity on your website to guide them through the shopping process.
Utilize AI capabilities to analyze customer data and share personalized product recommendations that would complement their purchases.
Use chatbots to showcase new products that you have launched on your website. Take advantage of the intelligent customer data to enhance relevance and suggest these new releases to encourage additional purchases.
Notify your customers about upcoming sales, discounts, or other promotions. Create a sense of urgency by creating limited-time deals and drive excitement around the shopping experiences.
Create interactive quizzes, games, spin the wheel, leaderboards, loyalty programs, and more to engage your customers. Use chatbots to share the same with your customers and build immersive shopping experiences for them.
Share order tracking information with your customers via automated updates and keep them informed about their packages. Offer them flexibility to inquire about the order status, expected delivery times, and more for a seamless post-purchase experience.
Request your customers to share feedback about their overall experience with your brand. Interact with the customers while capturing the feedback and offer them some reward for their effort.
Here are a few real-world examples showcasing the effectiveness of chatbots in the ecommerce industry.
HelloFresh is a meal-kit company offering affordable, time-saving meals to fit all kinds of lifestyles and budgets on a subscription basis. Its customer support bot, Freddy behaves like a real-life salesperson who engages with the customers to solve their queries.
Sephora, a well-known beauty and cosmetics website offers an amazing chatbot that shares beauty tips, interactive quizzes, and much more with customers along with the usual order-related updates.
GearBunch is a US-based clothing company that sells workout and yoga leggings having unique prints. To boost their sales and customer service efforts, they created a chatbot called Betty that acts like a personal shopper for customers.
Betty is configured to recommend products to customers as per their preferences. Besides product recommendations, Betty can share hard-to-resist offers with customers and convert their abandoned carts into purchases.
Ecommerce AI chatbots play an important role in personalizing shopping experiences for your customers. Tailored product recommendations, detailed shopping updates, real-time assistance, and more help in creating a seamless buying journey for your customers.
Ecommerce chatbots employ advanced natural language processing and machine learning algorithms to analyze customer data. This is to understand the customers' shopping patterns, their behavior on the website, demographics, and more for recommending products that are aligned with their interests and preferences. Further, you can use this data to pitch more products for your store's upselling and cross-selling initiatives.
Moreover, eCommerce chatbots share order updates, shipping information, and estimated delivery timelines with customers when requested thereby offering personalized assistance to customers and boosting customer satisfaction.
Chatbots contribute significantly to building a culture of loyalty and trust among the customers.
The rise of AI chatbots has taken conversational commerce to the next level. Conversational commerce focuses on leveraging conversational technology and messaging to enhance customer support and boost shopping experiences. It includes building messaging-first websites allowing real-time personalized customer interactions that are similar to the experience of interacting with a salesperson in a physical store.
Conversational commerce helps you build authentic connections with your customers via real-time interactions. This makes customers feel valued and results in better customer experiences. According to a study by McKinsey, 71% of customers expect brands to provide personalized experiences and about 76% of them feel frustrated if this expectation is unmet.
By integrating communication directly into business strategy, you can create an enjoyable journey for your customers. Chatbots play a crucial role in building a solid conversational commerce strategy. They leverage natural language processing, sentiment analysis, and machine learning algorithms to simulate human-like conversations with customers. They can answer frequently asked questions, share product recommendations, resolve customer queries with great accuracy, and much more.
Chatbots can complement and support your human customer service team in many ways.
Chatbots, by handling common queries, can help you free up your human agents' time to focus on more complex customer issues. While chatbots can recognize routine queries, they are smart enough to spot the ones that require human intervention and transfer them to a live support agent for personalized assistance. This ensures that your human support team works only on those queries that require human involvement.
They are designed to handle large volumes of customer interactions efficiently. They can successfully navigate sudden surges in customer queries during peak times and help your human support team share the increased workload.
Besides providing excellent customer support, chatbots are capable of analyzing customer data for various data points during interactions. This data can prove to be of great help to customer service teams for making informed decisions. It can also be used to train the customer service team to understand customers better and offer them quality service.
Human customer service agents are indeed irreplaceable when it comes to offering highly personalized support to customers. However, you can utilize chatbots to simplify customer support for your team. Chatbots can be leveraged for standard interactions while human agents can come into the picture for queries that demand a deeper level of understanding and personalization. Remember it is crucial to maintain a balance between the two to introduce genuine empathy and emotional understanding in your customer interactions.
Some of the future AI chatbot trends that will govern the eCommerce industry include -
- The adoption of advanced natural language processing algorithms for more human-like interactions
- Increase in the use of AI-driven predictive analytics for personalized product recommendations
- Multichannel integration for offering omnichannel support
- Voice-activated chatbots to enhance customer engagement and voice-based shopping experiences
You, as an eCommerce store owner, must be well-versed with these trends and take action to incorporate those in your website to deliver outstanding customer experiences and stay ahead in this competitive eCommerce industry.
AI chatbots in ecommerce stores offer numerous benefits, from enhanced customer engagement and improved customer satisfaction to streamlined processes and informed decision-making. They help you be available for your customers round the clock and engage with them via personalized messaging for seamless shopping experiences. Thus, they ensure greater customer satisfaction and retention.
Are you ready to take your eCommerce business to greater heights? Sign up for Bodt, an intuitive chatbot tool that will design and implement an AI-powered chatbot for your eCommerce business in just a few days. Get in touch with our team to discuss your requirements today.