What is Chatbot?

How important are chatbots in ecommerce?

How does Chatbot Benefit To Businesses?

Do you have these ecommerce chatbot questions in your mind? Let’s have a look!

A chatbot will be used by practically every organization by 2025. A conversational interface powered by artificial intelligence (AI) is becoming increasingly vital for corporate growth.⠀

A chatbot allows you to provide advanced customer care while monetizing your marketing efforts by pushing deals and promotions. They are a cheap and effective way for you to automate certain day-to-day tasks and can be incorporated directly into your social media efforts.

Chatbots allow you to provide instant customer service around the clock, and reduce the load on your customer service team. Hire Magento 2 developers to support your customers by build an own chatbot for your eCommerce business. Ultimately, this leads to higher conversion rates and an increase in customer interaction and sales.

Why Chatbots are the Future?

For businesses, Chatbots represent a very huge opportunity to engage, communicate and keep in contact with their customers through messaging apps. Chatbots are considered the future of eCommerce, customer service, and management.

Chatbots are revolutionizing the way social media marketing is done. They provide a new way for brands to reach out to their audience and build relationships without having to spend money on advertising. Brands can interact with their customers in subtle, meaningful ways. Marketers need to be able to engage with customers in an authentic manner that matches the tone of their brand, this might be difficult, but chatbots make it easy. All brands need is an idea, and they can create a chatbot in minutes; they don't need any coding experience or money to do so.

What are the Benefits of Chatbot for eCommerce?

Here are some ecommerce chatbot benefits listed below:

1) Seamless Real Life Interaction

With the help of AI (Artificial Intelligence), chatbots enhance the communication between humans and machines. Chatbots link previous questions to other questions to improve human-machine communication. This way, chatbots can give personalized responses to the customers’ questions by linking one question to another.

2) 24×7 Support

Customers always expect businesses to provide the service 24 hours a day, 7 days a week. But having a team to offer customer service for 24 x 7 is an expensive option. You can eliminate this cost with chatbots and still ensure your customers are catered to immediately by chatbots – irrespective of what time of the day it is. Offering 24-hour support to your customers is a great way to ensure customer satisfaction.

3) Personalization

One of the key benefits of having chatbots in ecommerce is that it provides countless personalization opportunities. You can collect data about your website visitors' interests and preferences using chatbots and use it to make better product recommendations and suggestions. Knowing your customers’ inquiries, preferences, and needs, can help you to personalize product pages on your website and boost customer loyalty, and affinity.

Using a chatbot, you can also notify customers when products are out of stock and suggest some appropriate alternate products based on their preferences. Retail giant H&M’s chatbot offers products based on the questions asked to customers about their style.

Source: Tidio

4) Reduced Costs

Businesses spend around $1.3 trillion on customer requests per year, as per eCommerce chatbot statistics. This expense could be reduced by 30% with the assistance of chatbots. As Chatbots do most of your customer service activities and require less human support. This will dramatically reduce human error and with minimal resource costs, you can enable efficient customer service.

5) Product Guidance

Quite often, e-commerce visitors get lost in the millions of products, dozens of similar items, read descriptions of each, and figure out what the best product is for them. Implementing chatbots can help such customers find or suggest the exact product they are looking for in such a huge catalog and help them make a purchasing decision. It also helps them to directly jump to the checkout page or obtain information on current discounts & sales.

Customers can make their purchases faster than ever, and this is thanks to product guidance from chatbots. For example,eBay’s ShopBot is a personalized shopping assistant who talks to customers to determine their needs and then offers personalized recommendations and finds the best deals from eBay's one billion listings, just like an experienced sales representative.

6) Cart Recovery

As an online merchant, you can easily reduce the cart abandonment rate with the chatbot because it reminds customers about the products in their abandoned shopping cart, redirect them to checkout, and encourage them to complete the purchase. In doing this, most of the customers revisit their cart with such reminders and enable them to buy some if not all the products in their cart.

7) Improve Engagement

Customers love to purchase with brands that provide better customer service and respond to their messages and queries quickly. If you want your customers to stay engaged, you should integrate chatbots to increase interactions with customers and enrich the user experience. This will improve your response rates and helps to convert your leads. Also, there will be an increase in customer engagement as chatbots enable you to respond immediately.

8) Reaching New Customers

Using Chatbots helps you to widen your brand reach. You can reach out to more potential customers, and achieve a better engagement. Let us inform you that most of the customers are on social media platforms like WhatsApp, Telegram, Facebook Messenger, and Instagram, which allow chatbots. Incorporating chatbots in your business pages of these social media platforms and being continuously active on them will let you reach out to a vast pool of customers on various networking platforms.

9) Higher Sales

Chatbots help to assist customers to provide them with great customer service, eventually resulting in increased sales. Chatbots can acquaint customers with new products and services from your website. A chatbot can provide all the necessary information to the customer to drive them into making purchase decisions.

10) Quick and Multilingual Response

A chatbot is designed to manage thousands of customer queries and process responses quickly. Another key advantage of a chatbot is that it can be customized as a multilingual chatbot so that you can answer your customers’ queries in their local language.

The above list of benefits of chatbots in eCommerce will help you reach more audiences, improve customer service and boost your sales. Let’s check out how does chatbot works?

How Do Chatbots Work in eCommerce?

Chatbots are computer programs that stimulate conversation with online users, usually powered by artificial intelligence. Chatbots are the new-age tool for helping you to improve customer satisfaction, increase sales and improve conversion rates.

• A user could provide instruction or ask a question to the chatbot
• Chatbots will analyze the user request
• After analyzing the request, a chatbot will identify the entities and intent.
• And finally, the chatbot will respond based on conversational strategy, real-time interaction, and personalizations.

What are the Different Types of Chatbots in E-commerce?

Chatbots are basically categorized in two ways: bots that keep learning with certain algorithms and bots with pre-decided functions. Bots with pre-decided actions are simpler ones that already have specific information and have particular options available. While learning bots are utility bots that have differing levels of complexity, depending on the algorithms used.

Rule-based chatbots

Rule-based chatbots execute pre-determined actions and pre-defined rules you set up on the back end of the user interface and can deliver solutions accordingly. The rules defined here can be simple or complex, but they are restricted to these rules only, and they cannot answer questions outside these rules. They don’t even learn via subsequent interactions or algorithms. They’ve been trained to just work for the rules.

AI chatbots

AI chatbots are the ones that use machine learning to understand the context, user command, and intent of a question before answering. These bots generate their own answers to more complex questions and use more natural language responses, artificial intelligence, and human intelligence. The more AI chatbots are employed and trained to understand the context through several algorithms, the more they learn and interact with customers. eCommerce companies with lots of data can take proper benefits of AI chatbots, as they work well for businesses with vast amounts of data.

eCommerce Chatbot Examples

If you haven’t wrapped your head around it yet and are still not clear about the advantages of implementing a chatbot, don’t worry. Here’s the best ecommerce chatbot examples to help you visualize a chatbot and how brands are providing value to customers.

1) H&M - Use chatbots to recommend products to customers based on their preferences and interest.

Being a global fashion company, H&M uses a chatbot in their mobile applications and helps customers navigate their search through outfit possibilities, and as per their purchase desires, it also guides them to the online store areas. The H&M bot provides the below details to customers and responds differently based on the information provided:

• Suggests outfits and products and the total price for all products
• If the customer dislikes the suggested outfit or product, the chatbot will select and suggest a different outfit
• If customers like the outfit, the chatbot provides new outfit suggestions too.

2) Adidas Women – Use chatbots to send product updates to customers

Adidas women decided to deploy a chatbot to deliver a true customer experience and to create a new type of interactive booking process.

Users can discover sessions organically using the bot

Users are allowed to register within a conversational interface for the

Super-fast-paced conversations for the user who is using messenger. The purpose of using a chatbot to enable session information sharing and registration is to help users to find updates immediately without having to reach out to them. Users can directly interact and communicate with the bot to receive updates immediately in a messaging format.

Best Ways to Improve Chatbots to Increase Customer Satisfaction

Chatbots are not the software where you can set it once and forget it. To get the best from chatbots, you need to improve chatbots overtimes, for which you need to continually monitor your chatbot's success, collect surveys, and need to gather metrics. Below are some ways to improve your chatbot over time.

• Monitor Success Metrics: To have conversation success metrics, you must have to monitor them regularly. The metrics can be anything like average chat length, customer chat ratings, etc, and these metrics will change depending on the purpose the chatbots are implemented and your business’s objective. Compare metrics over different periods of time to monitor how your chatbot performs over time.
• Collect Chat Transcripts: After every chat, make sure you collect chat transcripts to analyse them later. This will help you to identify the weak spots of a chatbot, and issues of customers, and plan to improve those issues.
• Post-Chat Surveys: After each chat is completed, you can include an option survey link. With this, you will be able to know how satisfied customers are with the performance of the chatbot and give you metrics upon which the chatbot can be improved.
• Make the Bot More Human: Make sure that your chatbots should still as conversational as human beings. The bot should be able to answer natural-language questions from customers and feel seamless.
• Keep adding new information: Chatbots are time-consuming to maintain as you have to fed them with new real-time relevant information continuously so that they stay up to date. So make sure you educate them, provide them with sufficient data, or give details to learn and grow.
• To make Chatbots friendlier, use NLP (Natural Language Processing): To recognize the real language, engage chatbots with Natural Language Processing. This way, transcripts of conversations can be easily analysed and managed so that chatbots can interact and engage conversationally.
• Leverage Data: Neural networks and machine learning can help make use of the data, learn from it, and use it to inform how a chatbot should react to new interaction types.
• Understand the limitations of chatbots before training them: When dealing with more complex queries, customers will always appreciate the human touch, while bots can be “trained” in empathy and friendliness. So you can add chatbots to a contact centre, and believe us it can really be a good addition to deal with gigantic quantities of low-complexity issues.

Summing Up

The benefits of chatbots in eCommerce business can vary from one e-commerce business to another. Chatbots become smarter so to boost customer experience, more and more companies started to use them for their businesses. The e-commerce industry is a very competitive one, and staying ahead of the curve is extremely important as there are millions of other merchants selling exactly the same products as you do.

Although chatbots will take place of humans, still they will be proved an incredible asset to your e-commerce business. If you’re looking to serve your customers in efficient ways – guide them through your e-commerce website, personalize their experiences, and offer 24×7 support – please connect our team and build your own chatbot and support your customers personally and efficiently.

We hope that our list of the Top 10 Incredible benefits of chatbots in eCommerce Store will help you understand why chatbots became such a buzzword, and why using them is the best thing you can do for your eCommerce business.