Why Chatbots are the Future of E-Commerce Business?

What is the meaning of the word Bot?

If it were 1993, you would start thinking about pop culture robots from the science fiction movies of the 1980s and 1990s. However, today this word represents something different and alien to the 1980s mind. Chatbot services sound crucial to online retailers now. 

By 2024, the global chatbot market may reach $9.4 billion, according to a Business Intelligence report. This chatbot upgrade is paramount for your online store to stay competitive. 

What is it that makes chatbots so popular? Does the value they add to your online store worth this hype? To get the answers, we will discuss the current state of eCommerce chatbots, their benefits, and how do they add value.

The situation of e-commerce chatbots today

Most probably, changing customer behaviors are playing the most fundamental role in increasing the popularity of the e-commerce field. Messaging has never been this trendy before. Monthly users of top messaging apps are even more than monthly users of popular social media networks. It could be hard to believe. 

The average open rate for private messages is 98%. It is five times more than that of the email (20%). Keeping that in mind, we will figure out how chatbots help the brands increase customer acquisition and retention and achieve satisfactory levels of customer loyalty. 

In 2018, the biggest online retailers of the U.K increased their sales by 23%. According to World Retail Congress research, the use of chatbots was the crucial factor behind this success.

As per another chatbot statistics, 40% of the online store visitors do interact with an e-commerce chatbot if there is one. So yes, e-commerce chatbots are one of the perfect tools for online retailers. They convey the information which is critical for conversion, directly to potential customers.

How Chatbots Add Value to e-commerce websites? 

Chatbot services add value to your business in several different ways. Here are some of them. 

Customer Acquisition With Social Media

One of the prospective channels to gain new customers for an e-commerce store is Social Networks. 30% of shoppers prefer to purchase from social networks such as Instagram, Twitter, and Facebook. Facebook is responsible for 85% of the orders that come from social networks. 

Facebook Messenger currently has over 100,000 chatbots. They can recommend products, collect customer information, and process orders. 

Is your target audience active on Facebook? FB chatbot development should be your top priority in that case. You can reach them out and automate the procedure of automating customer engagement and interactions.

Here is how it goes. Let’s say your potential customer needs to buy something from your e-commerce store. Rather than visiting it and searching for products, he/she sends you a message via your business page on Facebook. From this point, the chatbot will take over. 

It will ask about that particular product and send the link to your website that shows the details of that product. Hence, the bot ends up saving time and reducing the number of steps the customer has to take in the process of the sales funnel. Simple is that. 

Escalating Conversions

What is the primitive goal of any business in the world? Of course, it is to generate profits. The chatbots help any company a lot in this very goal. The software gets you closer to target conversion rates.

Now bring your customer down the sales funnel efficiently and quickly. Integrate the chatbot services to your e-commerce website, mobile app, and business pages of different social media channels. They help you urge the customers to purchase without sounding an idiot.

Retailers are using chatbots to let the customers reach the relevant products in light of their past purchases. They open the horizons to new upselling perspectives. Using chatbots for customer engagement is a good strategy as it affects purchase decisions and increases average order value.

There is this insurance company, OHRA, that uses a chatbot to increase the conversion rate from new campaigns. They integrated a pro-active chatbot that appears when the customer is on a relevant page. In just one week, the conversion rate jumped up from 35% to 100%.

The Decline in Shopping Cart Abandon Rate

Many shoppers abandon the cart because of one significant reason. That is an extra-long checkout process. A lot of them leave the carts when asked to register a user account. According to a study, this ratio is as high as 23%. Chatbot addition makes this process shorter and reduces the number of abandoned shopping carts.

How eBay chatbot deals with all this is stunning. Shopbot is the name of a virtual personal shopping assistant who finds the products for customers. It allows them to buy with guest checkout seamlessly and interactively.

Remarketing is another considerable use case of chatbot efficiently tackling the abandoned carts. When a customer adds some products to a shopping cart but later leaves the online shop without finishing the checkout, the chatbot reminds him about the incomplete purchase via Facebook Messenger. 

Improving Customer Satisfaction

The 24/7 support of e-commerce chatbots is the best tool to clarify all customer doubts. They do not have to face annoying calls and infinite scrolling on the FAQ page. The best plus is the removal of the human error factor. 

Not only can humans provide wrong information by mistake, but they can also influence conversion because of the emotions and mood they are going through. The Chatbot representative of the shop is always in a good mood and talks to customers politely.

A BI Intelligence report maintains that chatbots reduce customer support costs by 29%. They will redirect the customers to customer service staff only for extra complex queries. Most of the questions are way too simple, so chatbots will rarely perform this redirection. 

The name of the chatbot of the Royal Bank of Scotland is Luvo. It helped customers resolve their queries very quickly reduced the waiting time.

Collection of Customer Data

It is all about data in the modern world. Customer behavior is also the data you can utilize to devise your policy. The proper and thorough analysis of the customer data gives many valuable insights and helps you understand them better. Chatbot services are automated touchpoints on the website of many online retailers. AI extracts the data of all customer interactions with chatbots. 

Hereafter this data serves many purposes. First of all, businesses can use this data to enhance their customer services. The purchase history helps personalize the shopping experience. You can recommend your customers the relevant products according to the customer behavior that reflects in the data.

Customer Loyalty 

Apart from gaining customers, online stores (or any business) should also work hard to keep them around for long-term success. There is no other way to build customer loyalty but keep online shoppers satisfied all the time. Chatbots are one of the strong candidates for the task. They offer personalized conversations and great convenience, which is mandatory for customer retention. 

The chatbot asks the names of visitors and addresses them by name throughout the conversation. You may link the chatbot with the loyalty program to help it suggest rewards and exclusive offers to loyal customers. 

Conclusion

AI chatbots for e-commerce and social media platforms opens up new perspectives for online business. We hope that the article inspired you to get the best chatbot services for your online store. This interactive AI tool helps you acquire customers, offer them a personalized experience, and analyze their behaviors systematically to retain them forever. 

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