How Can AI Chatbot Reshape the Online Retail Customer Buying Experience?

Online shopping or as we call it, retail buying has become the go-to for buyers across the world. Surprisingly, the interface is no longer limited to the apparel, clothing, and/or fashion industry. The upending impact of the deadly virus has forced businesses to own a digital address, causing massive growth of the retail sector. Whereat one side of the coin, this allows businesses to operate in times of uncertainty, it further adds to the existing competition, making survival tougher than before. Business leaders rank customer experience and satisfaction as the crucial factors shaping the fate of a retail business. This is where we introduce the idea of AI chatbots, highlighting ways in which both customers and retailers stand to benefit from the technology. Without much ado, we move ahead to see how AI chatbots can reshape the shopping experience for digital buyers.

4 Ways AI chatbots transform the customer buying experience

Eliminate friction in communication

The last couple of years witnessed a dramatic shift in retail purchases with more and more customers moving to the digital world. With big players such as Amazon, Walmart, and others, retailers cannot afford to lose even a single customer. Researchers suggest that longer wait times lead to a deal being compromised and a customer loss. Hence the need for a system where your business is not just available 24/7 but also active. Conversational chatbots are active and online throughout the day, reacting and responding to customer queries without any delays. Consider it your friend next door to who you can reach out at any point in time and for any/every issue. Besides, the chatbots aren’t confined to a language or a time zone. Meaning that the same can be customized to connect with customers from all regions and across all backgrounds. In one line, chatbots help you serve your buyers better and smarter. Read More: Artificial Intelligence Key Trends for 2021 in UAE

Personalize customer conversation

Customers want to connect with humans and not bots. While having a live agent working over the desk 24/7 isn’t feasible, chatbots are designed in a way that they act and react like humans. In other words, the conversations between bots and the customers resemble a human-like interaction. Earlier, chatbots were hard-coded to simply answer in one or two words, or simply answer the predefined questions. With time, the concept of chatbots in the retail sector has evolved. The present-day chatbots have the potential to gather information, understand and analyze it to react better. Fed with natural language processing, the conversational bots respond in a customer-friendly way offering personalized interactions, thereby improving the end-to-end buyer experience.

Improve Conversion Rates

Conversational chatbots can not only interact and respond to the customer queries but at the same time, pose questions upfront to gather information about the customer/visitor/prospect. The conversation could start with a general question as to the name and the basic details, extending to their clothing preferences, brand choices, the type of product they are looking for, etc. All in all, these chatbots can get in-depth insights about the visitors which is then helpful in designing marketing campaigns and reaching out to potential prospects. When the campaigns are personalized and directed to the right person at the right time, the probability of conversion increases, benefitting the business. On the other hand, customized outreach activities mean that customers aren’t bombarded with emails instead they get the appropriate product without searching for it in the store. This reduces friction in online buying, enhancing the customer buying experience and accounting for greater satisfaction.

Automate order purchase

An excellent and expected advantage of using conversational bots is the automation of purchases. What this implies is that customers can regulate the purchasing of products through the chatbot itself. The AI-based chatbots are designed in a way that customers can browse through the products, get details on their type, know the price, and even place orders through the bot. What’s more fascinating is that customers can also make payments through conversational bots. With all security locked in, and the APIs integrated, conversational bots simplify the buying experience of the customers, adding to the overall satisfaction. Besides, conversational bots can also share personalized coupons, offers and send notifications to keep customers updated on all that’s happening in your business.

Statistical Viewpoint: Should you integrate AI chatbots in your retail business

Knowing ways in which chatbots transform the retail buying experience, it is crucial to talk about numbers to better answer whether your retail business requires a conversational bot at the customer-facing desk.

Survey results predict that by 2023 70% of the chatbots interactions would be retail-oriented. That is to say, the retail industry would adopt AI chatbots more than others.
A survey conducted in 2019 found that ±40% of the consumers in the U.S. use conversational chatbots to interact and engage with retail businesses.
Besides, ±54% of consumers interact on an everyday basis with AI-enabled bots.

Another study conducted by the National Retail Federation found that 54% of the buyers online are specific about their purchase. This indicates that given the ease of buying the desired product, you can not only add an order to your database but also have a happy and satisfied customer.

Read More: How can Business Intelligence Improve Business Growth?

With chatbots coming to play, you can easily,

Limit the search operation by asking them the right questions and filtering out products based on the responses.

Presenting an entire catalogue of products that matches their search criteria and the preferences mentioned above.

Help them add one or more products to the cart without going through the hassle of entering details.

Direct them to the payment page, accepting it through the interface, eliminating delays in order placement.

Send confirmation messages, timely notifications, and other details to keep them in sync with their order status

Get feedback and reviews from the buyers to further modify the cycle and improve the customer experience.

Conclusion

All summed up, chatbots in the retail sector are expected to bring about a major transformation, easing the process through which customers make a purchase. With a 55% increase in online retail business post the 2020 pandemic crisis, the future only seems to grow better and brighter. For retailers who are yet to adopt the technology and adapt to the change, now is the time to make the move. If you are in a dilemma, not being able to make the choice, connect with us. We have helped multiple retailers transform their digital presence smartly and economically. You can be our next.

Shefi Sherif

Shefi Sherif has nearly two-decade of industry experience in managing different business verticals in India, UAE, and Tanzania. Presently he is the Director of Euclidz Technologies. With his innovative management techniques, he managed teams to deliver excellent results and achieved the highest operational standards across all areas of the business. He is passionate about Artificial Intelligence and his vision is to implement affordable AI and Analytics Products and Solutions for every business to Grow, Optimize, and Sustain.

How Can AI Chatbot Reshape the Online Retail Customer Buying Experience?

4 Ways AI chatbots transform the customer buying experience

Eliminate friction in communication

Personalize customer conversation

Improve Conversion Rates

Automate order purchase

Statistical Viewpoint: Should you integrate AI chatbots in your retail business

With chatbots coming to play, you can easily,

Conclusion

Tags

Shefi Sherif

Related

Artificial Intelligence and It’s Importance for Businesses

Artificial Intelligence Key Trends for 2021 in UAE