Chatbots are transforming the facade of E-commerce and M-commerce. If you splurge on e-shopping, it’s assertive that you have at least once interacted with a chatbot on your shopping spree. Ever tried opening up an instant chat on an e-commerce website and received an instant reply for a product query? Perhaps you didn’t know but the instant response you received was from a chatbot.
With the growing popularity of Chatbots, the ecommerce industry is booming with more and more businesses trying to engage consumer base in the prime target market of chatbots.
With chatbots projected to leverage 85% of customer service interactions by 2020, the time is ripe to epitomize your ideal market with chatbots.
Let’s look into how using chatbots for ecommerce can drive conversion rates, customer retention, acquisition and loyalty.
1. Chatbots For Customer Acquisition
Chatbots are taking over e-commerce completely and their popularity is driven by the fact that messaging apps have surpassed social apps. This naturally has lead brands and services to be more present where their customers are; in turn, making chatbots a prime resource for businesses to engage with their consumer base.
The chatbots AI provides personalized engagement like none other. Chatbots can easily mimic humanoid interactions and can respond to the user with information and pattern the same as a sales representative would. With chatbots having unlimited access to data repositories, they can swiftly generate exceedingly precise recommendations based on the user profile.
This allows chatbots to engage customers in real time on a personal level. Businesses adopting chatbots for E-commerce use them in the form of chat bubbles, in-app/ e-store coupon offers, and personalized chatbot surveys. These all primarily help in customer acquisition and subsequently drive conversion rates.
2. Chatbots For Collecting Customer Data
Chatbots are gradually becoming a major source for acquiring data. Chatbots are capable of handling and gathering more customer data than any other form of data accumulator. From typing accuracy to nuances in response time and speech can be mined as big data sets by chatbots to further understand users and their behaviors.
Chatbots can also be set up to conduct relevant surveys concerning what prospects seek in an online store so the e-store can revise the store inventory accordingly.
Since the collected information is niche specific it is considerably more valuable to site’s owners than any other analytics.
3. Chatbots For Conversion Rate Optimization And Boosting Availability
Chatbots are more like your e-stores customer support agent, only that they are present virtually. Chatbots can boost decisions, optimize and drive conversions in a number of ways.
A survey states, 83% of online shoppers need assistance to complete an order and 75% of customers expect help within the 5 minutes of the order cycle. Chatbots are essentially helpful during such times for example, sale seasons when there is a long customer queue.
The bot can help with simple service tasks for customers such as assigning tags on checkout or assigning a corresponding operational resource to a customer for queries. The more thorough customer's query handling is the better user experience an e-store can leverage.
4. Chatbots And Velvet Rope Experiences- Retain Prospects
ChatBots serve as the exclusive provider of “velvet rope” experiences. According to Gartner by 2020, smart personalization engines (chatbots) used to recognize customer intent will enable digital businesses to increase profits by up to 15%.
Furthermore, a recent report from Accenture states that 75% of consumers prefer brands that warrant personalization i.e. messaging, offers, and experiences. The more a brand or service interacts, the better and more personalized the experience is. What enables users to have a Velvet rope experience can be factored down to two explanations:
- Interaction on a personalized level
- Instant costumer gratification
No matter how a prospect arrives at your chatbot, either from an online ad, website, a link or otherwise, extending a personalized response can offer prospect with velvet rope experience.
5. Streamlining Store Management With Chatbots
Integrating Chatbots in an online store can allow multi-tasking of numerous operations from a single control point such as a dashboard or a window. Estores can optimize their services for users to gain access to store facilities by using chatbots to leverage various sections of in-store search. Streamlining e-store management can be readily done via custom bots.
6. Providing Concierge Services- Engage Customers
Fashion brands such as Burberry and Tommy Hilfiger are extending their elite luxury service to chatbots. These brands have brilliantly infused influencer marketing within chatbot community. Market Influencers will be integrated as chatbot personalities, adapting to the user’s style and their preferences.
Users of the chatbot personality will be able to view entire collections, place pre-orders and also purchase the clothing articles. The bots in this way gather data about the consumer, such as shopping habits and preferences, in order to present relevant content and encourage consumers to return for similar e-shopping experiences for future purchases.
7.BoostingLeads With Chatbots- Upsell & Cross Sell
Generating business leads has always been the toughest task on the market. In today’s digital era how readily a customer gets help nurtures brand loyalty and increases or decreases customer lifetime value by about 17%.
Chatbots can be easily assimilated into a business’s existing marketing strategies for improving lead generation. They can be optimized with relevant responses depending on user choices, which guide them towards products and services either through manual search or interest.
An integral feature that an e-commerce bot can implement is product recommendations. A survey states that cross-sells and upsells are responsible for an average of 10-30% of e-commerce revenues. Upselling single-handedly drives approximately 4% of total online sales.
Keeping this in view, purchase suggestions can be greatly personalized in bots by leveraging customer preference data. For example if a chatbot detects some predefined customer pattern during a customer’s navigation on eshop, the bot can automatically suggest related products and services offered by the affiliate seller.
This subsequently increases chances of a customer buying additional items, in turn yielding high conversion rates from buyer. Eventually, chatbots can also efficiently lower shopping cart abandonment rate which tills at 69.98%.
The e-commerce market is evolving with the adoption of chatbots. Auto interaction tools such as Chatbots have become a vital part of the online and offline shopping experience, directly impacting sales and leveraging surplus marketing benefits for e-commerce.
More and more progressive bands are using chatbots to provide faster responses, improve customer service, accumulate customer data, and create an overall gratifying buyer experience.
If you have not yet trialed chatbots, now is the time to seize this golden opportunity for your e-commerce business.
Steven Clark is a brand analyst at CMOLDS , a company providing app development services. CMOLDS can help you leverage customized chatbots for you ecommerce business app and make your app dreams come to life.