Once a luxury that can only be afforded by tech-savvy businesses, chatbots have evolved into a necessary tool for delivering delightful experiences.
With 74% of customers relying on chatbots to get answers to simple questions, more online retailers need to start embracing this innovation to ensure a smooth buyer journey.
In this article, we will dive deep into what chatbots are, their benefits, and how you can find the right one for your needs.
What are eCommerce chatbots?
eCommerce chatbots are computer programs that are designed to interact with humans in a manner similar to human conversations. Using natural language processing (NLP) and large language models (LLM), chatbots are capable of interpreting user queries and providing accurate responses.
For example, if you ask a chatbot what specific workout clothes you are looking for, it will provide you with several recommendations based on your preferences.
Chatbots respond either through rule-based systems that follow pre-established guidelines or machine learning (ML) algorithms that analyse previous interactions.
Types of eCommerce AI chatbots
eCommerce AI chatbots come in three types, and each has its benefits and limitations. It is important to understand these chatbots so you can determine which ones can provide the best customer experience.
- Rule-based chatbots: These are traditional forms of chatbots that rely on predetermined guidelines and flows to produce generic answers. These can be used by eCommerce businesses to collect user information and answer simple questions.
- Smart conversational chatbots: These chatbots use natural language understanding (NLU) and natural language generation (NLG) to provide personalised conversations. They are useful in situations when the user requires intervention from the customer service side.
- Hybrid chatbots: The chatbot combines the advantages of both rule-based and conversational chatbots. eCommerce businesses can use hybrid chatbots to collect data, guide visitors throughout their buyer journey, and resolve issues.
What types of inquiries can an AI chatbot for eCommerce handle?
Not all customers who visit your website are the same. Some could be cold visitors who are just learning about your brand for the first time, while others are existing customers.
For the former group, chatbots can answer questions related to specific products or services. Sometimes, they can even recommend similar products based on those queries. If a visitor decides to make a purchase, the chatbot can accept payment directly without the need to go through a checkout page. This, in turn, reduces the number of cart abandonments.
For existing customers, chatbots can be configured to manage orders. For instance, if a user wants to track their current order, the chatbot can show where the product is currently and the estimated time of delivery. They can also connect users to support agents if they feel that the chatbot is unable to answer their queries.
Why use AI agents in an eCommerce website: Benefits
AI chatbots are capable of improving your customer experience game and supporting your human agents. Below are just some of the benefits chatbots offer for your e-commerce business.
1. Generate leads
Chatbots can replace forms used for collecting customer information. By asking customers questions, businesses can gain insight into what pages they have visited, their location, and language preferences. This information is crucial in creating effective targeted marketing campaigns that keep potential leads engaged with your brand.
2. 24/7 customer support
Chatbots do not need to sleep and are, therefore, ready to answer any queries customers have, even during peak hours or outside business hours. This is crucial as fast response times can lead to greater customer satisfaction. In fact, a statistic by Passport-Photo. Online finds that 59% of customers expect chatbots to reply to their queries within 5 seconds.
3. Personalised shopping experience
According to McKinsey, 71% of customers expect personalised interactions, with 76% expressing frustration if a business fails to provide them. Chatbots that are integrated with customer experience tools can adapt messaging to buyer journeys and recommend relevant products. This can give customers the impression that your brand is always thinking about them.
4. Cost efficiency
Using chatbots to solve simple queries can reduce the average resolution time from 38 hours to 5.4 minutes. While you will still need human support agents to handle complex issues, chatbots make it easy to serve more customers without having to hire more talent.
As a result, businesses can save money over time, which can then be redirected to more strategic efforts like research and development.
5. Enhance customer experience
Chatbots can provide businesses with a real-time window into customers’ behaviours and potential issues. This information enables the chatbot to answer questions and help them take the next step in their buyer journeys. For example, a chatbot may provide customers with tailored information on a specific loan to encourage them to complete their application.
Chatbots can also provide customers with self-service options so they can find answers to their questions on their own. Specifically, chatbots can pull information from their existing knowledge base or direct customers to help centre articles that are relevant to the issue they are looking to solve.
6. Prevent and recover abandoned carts
Chatbots can inform customers of items left behind in their carts and entice them to complete their purchases by offering discounts or coupons. They can also answer any questions or concerns customers have regarding the product or the checkout process.
7. Collect customer feedback and reviews
Businesses can program chatbots to ask for feedback or reviews. After a customer completes a purchase or solves an issue, the chatbot can send a survey question with a rating system asking how their interaction went. The chatbot can even send exclusive deals or offers to encourage a response from the customer.
Additionally, chatbots can also search and analyse conversation logs to identify issues customers are currently facing and products they most likely prefer.
What are the key features to look for in an eCommerce AI chatbot?
When acquiring eCommerce chatbots, businesses should focus on those that can understand context, meet customers in their preferred touchpoints, and have user-friendly features. Below are some features that companies should keep an eye for:
- Omnichannel compatibility: Integration with messaging apps like WhatsApp or Telegram allows users to connect with users who are on the move. Moreover, by connecting chatbots with voice assistants like Amazon Alexa, businesses can offer voice-enabled interactions for hands-free assistance.
- No-code capabilities: Chatbots that require no coding make it easier for businesses to tailor their functionalities so they can meet specific needs. These types of chatbots are equipped with visual interfaces and drag-and-drop features that agents of all skill levels can utilise to scale up their operations.
- User-friendly features: For businesses that have little to no technical knowledge, consider getting chatbots that have intuitive interfaces and easy-to-understand documentation. This makes it easier for users to customise the chatbot’s functionality without having to rely on specialised talent.
- Sentiment analysis: Chatbots with sentiment analysis capabilities can determine if users are expressing a positive, neutral, or negative tone. They can then tailor the chatbot’s responses to create more empathetic engagements for the user.
Also read: AI Agents vs. Chatbots: What’s the Difference and Why It Matters for eCommerce
Chatbot applications in eCommerce
Businesses across the world have already tapped into the power of eCommerce chatbots and AI agents to increase sales and deliver a better shopping experience. In this section, we will explore some of the many success stories:
- Sephora: Integrated into Facebook Messenger and Kik, the Sephora Virtual Artist chatbot allowed users to try makeup products without having to leave their homes. This feature enabled the multinational beauty retailer to boost booking rates by 11% and increase sales of their featured products.
- Domino’s Pizza: The Dom chatbot allows customers to order their pizza via Facebook, Twitter, or Alexa. The chatbot’s ability to remember customers’ preferences has led to improved order accuracy and a 29% increase in online orders.
- Marriott International: The hotel chain’s ChatBotlr was designed to facilitate hotel bookings, provide information on the rewards system, and answer frequently asked questions. Not only did the chatbot boost hotel bookings by 44%, but it was also received positively by 87% of users and helped to reduce workloads for customer service personnel.
How can I measure the effectiveness of my eCommerce chatbot?
While chatbots are a promising innovation, the technology is not exactly foolproof. To get the most out of chatbots, it is important that businesses identify key performance indicators that measure how well chatbots are performing.
Chief among these is conversion rates as they indicate how well a chatbot was able to turn conversations into new business opportunities. This can range from a successful sale to an appointment.
Equally as important is the satisfaction rate, as it determines how effective the chatbot is at delivering a positive interaction. This includes the number of 5-star ratings or positive feedback from customers.
Another metric that businesses should consider is the self-service rate. This metric determines the capability of chatbots to solve queries by measuring the number of tickets closed within the first interaction.
Lastly, eCommerce businesses need to assess the AI chatbot’s confusion triggers. This is when the AI chatbot is unable to understand and answer the user’s queries. Companies can measure this by looking at samples of past conversations.
Conclusion
Chatbots are a game-changer in supporting customers’ buyer journeys and strengthening relationships. However, chatbots are not without limitations, and it is best to take a step back and assess which programs are right for your business. Those who are successful will see massive returns in the form of increased sales and brand loyalty.
