7 Key Advantages of Using E-Commerce Chatbots

Article By Adela Belin (Digital Marketing Head at Writers Per Hour)

7 Benefits of Using E-commerce Chatbots:

Remember the last time you logged onto your favorite clothing retailer’s e-commerce site and in a few seconds, an automated chat screen popped up asking you if you need any help? That automated program is referred to as chatbot, and you are likely to see more of them around.

A product of Artificial intelligence (AI), chatbots are transforming the way brands are engaging with customers. Whether it is offering personalized shopping assistance or helping customers plan their holidays – brands are increasingly integrating chatbots on their e-commerce site to improve user experience. As per a ubisend report, 35% of consumers want to see more companies using chatbots, proving that the chatbot revolution has just begun and is here to stay.

Here are 7 Key Advantages of using E-Commerce Chatbots:-

1. Resolve Queries:

While phone calls have been treated as the first touchpoint for customer service for years, did you know that 32% of consumers consider the telephone to be a frustrating channel? This is mainly due to the wait time it comes with and the inability to reach the right point of contact in the first go.

Here is where chatbots can bridge the gap and guarantee to leave customers with a more delightful shopping experience. Being available around the clock, chatbots can resolve queries instantly and accurately. They reduce the wait time and are able to tackle multiple customer queries at the same time.

An example of a brand that uses chatbots to resolve queries is Staples. Its chatbot is programmed to handle queries ranging from stock inquiries to return policies and order tracking, thereby enhancing customer experience.

2. Recover Abandoned Carts:

What do you do when a visitor adds items to the shopping cart but leaves your site without making the purchase? Chances are you send them an e-mail reminder, but have you noticed how it rarely leads to a conversion?

Chatbots serve as more effective reminders when it comes to evoking a positive response from customers because they are a more personalized mode of communication which leads to higher open and click rates.

Most importantly, you don’t have to worry if your cart abandonment message gets visibility because contrary to e-mail marketing, there is no way your chatbot reminder can land up in the spam folder. So, activate chatbot reminders every time someone leaves without making a purchase and you are sure to see better results.

3. Make Announcements:

Have you launched a new range of products or are running a limited-period only sale? Why not use chatbots to communicate these announcements to your customers?

The best part about chatbots are that they are conversational in nature and allow you to communicate announcements to visitors, directing them to specific landing pages that can induce purchases.

For example, if you are a writing service, you can communicate discounts to first-timers and also offer coupons to students via the chatbot.

4. Generate Leads:

Say goodbye to the traditional lead generation methods and leverage chatbots to do the trick for you. Yes, instead of having customers fill lengthy forms, interact with visitors using chatbots and collect the required data seamlessly.

This reduces your cost per lead and also gives you a better idea of what your potential customers are looking for. Not just generating leads, chatbots also help you to nurture leads by doing timely follow ups and targeting them with personalized communication that can help convert.

5. Drive Sales:

Let chatbots serve as personal shopping assistants. Instead of having customers browse through your entire site, you can use chatbots to understand what they are exactly looking for and offer tailor-made communication to your customers basis their needs.

You can also recommend products to shoppers based on their shopping history. For instance, if they previously bought a white dress, you can suggest accessories that can go with it via chatbots.

Just Eat, an online food order and delivery service reported that their chatbot drove a 266% higher conversion rate than an average social ad. Now, that just goes to show how huge a role chatbots can play in driving sales and increasing conversion rates.

6. Track Customer Behavior:

Blanket communication no longer works – in the age of personalization, it is vital to track your customers’ shopping journeys and patterns to gain valuable insights to attract, convert and nurture customers.

Chatbot intelligence lets you do exactly that – understand customers’ preferences and buying behaviors such that you can target them with personalized offers and communication to gain their interest.

You can also use this conversational marketing tool to conduct surveys and get feedback from your customers.

7. Save Time and Cost:

Last but not the least, why spend time and money on hiring a customer service workforce when you can just automate the entire process and reap additional benefits? As per a study done by Juniper, chatbots were believed to cut costs by over $20 million in 2017.

Being automated programs, chatbots are far more productive and promise to enhance customer experience, going to show that integrating chatbots is definitely a win-win situation for your business and customers.