4 Ways Chatbots for eCommerce Actually Make a Difference

Chatbots for E-Commerce Actually Make a Difference

Chatbots have become synonymous with good customer service. They provide prompt feedback to queries. 24/7 availability means you can provide help every time. You don’t need full-time staff to man the phones, emails, chats, or social media platforms.

Yet, there is so much more eCommerce platforms can get from chatbots. Our article will explore how bot technology is making a difference.

Chatbots, What Are They

A chatbot is a computer program that provides automated interaction with customers. It simulates human conversations. You always feel like you're interacting with a human being. There are two basic types of chatbots.

  • Rule-based chatbots are pretty basic in their functionality. You input pre-written scripts that allow them to handle simple questions. Such chatbots respond to specific commands. But, they can't interpret the user's language.
  • Predictive chatbots incorporate artificial intelligence (AI) technologies. Such include machine learning and natural language processing. Some of the best eCommerce chatbots available are AI chatbots. They learn human behavior and can interpret language. They provide more insights into the user's needs. AI chatbots also provide different responses depending on the scenario. Customers get product recommendations depending on past buying behavior. Further, the conversational nature of the interactions helps improve engagement. In the end, the business can achieve higher chances of conversions.

Exploring the Critical Role of Chatbots in eCommerce

1. Chatbots Improve Customer Interaction

Does it sometimes feel like the brands you transact with ignore your queries? Even when they do respond, do you feel like they should have done it sooner?

Research shows that, on average, a company will take 10 hours to respond to customer queries. An astounding 89% of social messages will not get any feedback. At the least, people can expect to wait up to 4 hours to get a response.

Companies may not quite realize the importance of quick answers to customers. 70% will use a product or service if you reach out to them. 65% increase their loyalty to your brand. 75% will share the excellent experience on their social platforms.

Companies that struggle with customer support can benefit by using chatbots. What you get is:

  • Prompt feedback meaning customers do not have to wait hours to get a resolution to their issues
  • The use of conversation to engage with customers. Many people will not even realize that they are talking to a machine
  • Data-driven insights to guide the communication, resulting in better service
  • 24/7 availability of the service all year round. Customers have full-time access whenever they need your services
  • Real-time access to user interactions and critical data for quick analysis. The business will, in the end, provide better quality service.

2. Service Personalization

As we have mentioned, AI chatbots get insights from past interactions with customers. They use the information to customize future conversations.

Further, you get product recommendations based on what you purchased in the past. For customers, it feels like the company cares about them enough to know what they like.

For the business, it increases the chances of conversions by availing products to buyers.

3. High efficiency in processes

AI chatbots can bring in a level of efficiency that is not achievable with human labor. They do not ask for sick off days or suffer from mood fluctuations that may affect client management. You can complete tasks that would take a long time in a very short time.

Take the example of looking for information in the CRM inventory management system. It will take you hours to go through all the data to get what you need.

But, by using chatbots to automate the process, you get feedback in seconds. You save on time that could go into handling other tasks.

Businesses can program chatbots to help with other jobs. They can, for example, keep track of the inventory. You stay up-to-date with stocks that may need replenishing. Once you restock, the chatbots alert the customers on availability.

Chatbots also help with processes like order status and tracking. Customers can also search for products in the chat window and make orders. They do these without needing to switch to another tab.

eCommerce platforms like Woocommerce, Shopify, Magento, and Bigcommerce allow for integration with chatbots. You get all the benefits right from the platform of your choice.

4. Lower Operating Costs

It is easy to argue that technology is expensive. But, if you consider the long-term implications, you will see massive savings.

Let's go back to the example of having customer support agents. Financial constraints mean support is only available during regular work hours. Yet, eCommerce businesses run 24/7.

You may have customers in different parts of the world and time zones. The typical 8-5 will not apply in such a situation, meaning you could lose customers.

Investing in chatbots technology removes the attendant costs of human agents. No salaries, insurance, and overtime that drive up operational costs.

Also, put a dollar amount to the hours you spend in manual processes. Now, compare all these to what you would spend on installing chatbots. The savings will be clear to see.

5. Automation of Leads Generation

Leads generation chatbots help with:

  • Identifying potential customers
  • Creating interest and initiating conversations around products or services
  • Cultivating relationships with prospects for better engagement and interaction
  • Offering recommendations around products or services
  • Conducting surveys and asking relevant questions. The insights allow for a better understanding of audiences
  • Audience segmentation with data-driven insights like gender, age, and interests. Such data is critical for leads nurturing, allowing for better targeting of messaging
  • Chatbots also remove the need for customers to fill lengthy forms. From the conversational nature of interactions, the bots get the necessary information. It then uses the auto-fill functionality to input the data. You provide convenience to customers by taking care of such tedious tasks. When you integrate the bot with the CRM, it gives quick access to all the information every time you need it.

Final Thoughts

eCommerce platforms must provide convenience 24/7. Chatbots offer an ideal way to increase efficiency and improve the customer experience. The data-driven insights are fantastic for leads generation and nurturing.

Chatbots are also compatible with most tools and platforms. This includes your website, CRM, mobile devices, and so much more. It becomes easy to manage customers from many locations. You don't incur the extra cost of separate infrastructure for the chatbots.

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