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Why chatbots are the future of ecommerce

Why chatbots are the future of ecommerce

April 8, 2020

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A Few ways chatbots can change eCommerce

Understanding chatbots is not as hard as it may seem. They are simple to integrate with other applications, and that makes them a top choice for different industries. Amongst plenty of the use-cases and relevant sectors for chatbots, one business industry that is being revolutionized is eCommerce. Online store owners around the world consider chatbots as the final solution to their everyday problems. Now let’s list the ways bots have made better the eCommerce game both for store owners and customers.

eCommerce product recommendations that are driven by data

Chatbots and continuously collecting data and learning patterns costumers use when talking to them. Determining what their favourite colour is, the size of the jeans, their preferred type of music, and more. All of that is being used to give specific product recommendations and increase sales.

Automated Lead Generation and Qualification

A decent-sized inventory is standard for eCommerce businesses, and the customer can sometimes be lost in finding the required item. Chatbots should be your solution to easily lead customers to what they are looking for and make their life much more comfortable. The big scalability of chatbots enables them to initiate a conversation with website users and differentiate interested users.

If we add natural language processing and artificial intelligence to a bot’s flow, they perform better at lead generation than regular live agents. With time and technology going smoothly, some chatbots are primarily targeting sales. Their job is to gather and store customer information over time and automate information road to sales teams for closing the deals, which is precisely what we want. Lead generation is proving to be the favourite application of chatbots for business owners or their marketers as it drives in leads for businesses worldwide.

Customer data mine

Though it all comes down to using the data for better consumer interactions and sales, this is one of the most important use-cases. We share a lot of information while having a conversation, no matter of the fact, whether it is a bot or human at the other end. Conversational marketing has this particular advantage of learning and using consumer habits to good effect. Chatbots store a lot of consumer data that includes buying habits over time and past purchase history. Every other time the same customer visits the store, the data is used to provide an excellent user experience and convert them more easily.

This rich consumer data can be used, and it is used to advertise to these customers. The power of knowing your customer’s habits and having track of their purchase history is like having a psychic vision. You can show the right advertisements to them and at the right time, which will result in better sales and conversions.

Rewarding Customer Loyalty

Businesses spend a pretty good amount on customer loyalty programs to reward their loyal customers and recruit them into brand advocates. There is nothing wrong with the practice, but chatbots have found one of their applications in rewarding customer loyalty too.

Most popular fashion brands are setting great examples of using conversational chatbots to interact with consumers. Burberry, the British luxury, the expensive brand allows its customers to do many things using its bot. Including checking behind the scenes look from fashion shows and exhibitions to buying the apparels directly from the application and from sending notifications to users who previously interacted with the chatbot to offering live chat with a company agent.

Burberry has raised the bar with its advanced chatbot. The company unveiled its chatbot recently, which allows users to browse and search through the best watch collections containing the most popular items. The customers can check all the features and options of an individual watch or find and visit the nearest store to check out the watch in real life. Chatbots are an individual, better to say unique, and effective way to connect with regular and loyal customers and making them feel valued.

Two examples

1) Argomall

How the chatbot works

Argomall is an eCommerce that is located in the Philippines, selling consumer goods. Their bot gives customers a way to find out crucial information about Argomall. That includes delivery details and asking questions and talking to an Argomall support agent.

The bot was created with two main goals in mind:

To help improve the sales process, to better live chat, that enabled customers to chat with an agency at any point in the sales process. Argomall’s bot also uses Google’s Site Search API so that consumers can enter keywords such as “Lg TV” and see relevant or the most popular products from their store.

The results

Argomall’s bot has become an essential sales and customer service tool for the company, and it is generating a 23x increase in ROI first few months after its launch.

2) LEGO

How the chatbot works

LEGO’s chatbot helps shoppers attack a hard problem, which is choosing the right gift. Ralph, the bot will arrange personalized gift recommendations to all of the users directly within Facebook Messenger. Ralph, the bot chooses gift recommendations based on how a user answered questions when talking to the bot. It starts by asking simple questions: the age of the person you’re buying for, location, and gift budget.

When the bot has these details, it lets users choose the theme of the product they would like to buy(travel, adventure, town planning). Once the user has found an item they like, they get a link that automatically adds the item to their shopping cart on Lego’s website, and they can purchase it right away.

The results

LEGO’s chatbot is available in the UK, Germany, France, Poland and US. Using the feature from Facebook click-to-Messenger ads, in some of these markets Lego has seen a 6X return on advertisement spend. The bot also helped LEGO to reduce their cost per conversion by 31%.

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