BusinessWhat are Chatbots and Why are They Important for eCommerce Business?

John SmithJune 15, 20213711 min

Providing great customer service is crucial for eCommerce web solutions around the world. No matter how popular you are, poor customer service can break your businesses leading to reputational and financial damages. Although you have mentioned all the information on your website regarding your products, and different policies, there still will be customers who would have queries that need immediate responses and for that, your around the clock presence is a must. Along with that you also need to make sure that your resources do not exceed your company budget. This is where deploying a chatbot service can always come in handy. They can not only provide real-time assistance to your customers but also have in-built marketing capabilities to take your businesses to a whole new level of experience. The global chatbot market will be worth $9.4bn by 2024.

In this blog, you will learn about chatbots, everything you need to know including their importance and impact on your business. So let’s dig right in.

What are Chatbots?

According to Investopedia, ‘A chatbot is a computer program that simulates human conversation through voice commands or text chats or both. Chatbot, short for chatterbot, is an artificial intelligence (AI) feature that can be embedded and used through any major messaging applications. They are also known and interactive agents.

Chabot’s provide customers with an experience that’s similar to speaking with human support staff. Chabot’s are used across global industries for the sole purpose of automating customer service responses. They can provide answers to simple questions, only the ones that are fed into it, you can ask a chatbot to speak like Chewbacca.

Types of Chabot’s

There are two common types of Chabot’s: rule-based Chaoobot’s and AI and ML-driven Chabot’s.

Rule-Based Chabot’s

As mentioned above, rule-based chabot’s play by the rules and only operate around predefined sets of rules and information and typically provide pre-recorded responses to customer queries. These chabot’s are built using ‘decision trees’ that are of varying complexities.

Machine Learning and AI-driven Chabot’s

Some of the popular examples of ML-based chabot’s are Alexa, Siri, google assistant et al. They are basically known as virtual assistants, unlike rule based chatbots. Machine learning bots are capable of providing human-like interactions. They continuously learn from previous interactions to provide appropriate responses in the future and therefore, they become more effective with every conversation.

Importance of Chabot’s for eCommerce Web Solutions

According to studies, by 2023, chatbots are projected to drive eCommerce transactions worth $122bn. The numbers are pretty clear, hence chatbots are gaining popularity, especially in eCommerce and online retail. So let’s take a look at some of the benefits of using chatbots in the eCommerce industry.

Around the Clock Customer Support

Customers expect businesses to be available 24/7, with no exceptions. But the truth is that having a fully functional customer support staff can be super expensive but with chatbots, you can not only ensure around the clock service but also eliminate the very costs associated with human resources. Moreover, chatbots are always available, irrespective of the time zones and location. Offering 24/7 is a great way to ensure customer satisfaction and keep them coming back for more.

Offering Personalized Services

Chatbots can also collect user data and knowledge about customer’s buying behaviors and patterns to offer personalized services and interest based recommendations and suggestions. Moreover, chatbots can understand customer preferences and needs and can notify them of appropriate alternate product options. They can also inform customers of their expected delivery date and time. For example, chatbots at H&M ask customers questions about their style preferences and offer products accordingly.

Helps Customers with Fast Search and Resolutions

eCommerce is a highly competitive industry therefore you need to be able to provide faster and accurate product details when a customer is looking for it. Because this is where he would make a purchase and your timely response is of utmost importance. The reason why integrating a chatbot in your online eCommerce web solution is the best way to make sure that your customers get the timely assistance they need.

Additionally, if you want customer loyalty then after-sale service is of utmost importance such as issues with delivery, refund, return, or payment concerns if not addressed on time can make you lose your customers. With chatbots now, instant resolutions are possible such as instant responses are ideal for requests related to return, refund, payment, billing, order confirmations, and shipping information.

Reduces Cart Abandonment Rates

Abandoned carts can cost you millions of dollars. However, chatbots can reduce the number of abandoned carts by sending reminders to customers and asking them to make a proceed towards checkout. Sometimes customers can literally forget about their carts, therefore such reminders can prove to be quite helpful. Apart from that, chatbots can ease the human staff’s workload and can divert their attention away from menial tasks and onto core business operations and processes which is a much more efficient way of utilizing the time.

Make Your Customer’s Shopping Experience Exciting and Enjoyable with Chabot’s

If you are too looking forward to deploying a chatbot then the following tip might help you facilitate your integration process:

  • Always stay transparent about your customer services meaning if your customers are chatting with a chatbot, never let them think otherwise.
  • Protecting a customer’s privacy is your responsibility to protect it at all costs. Breach of privacy can lead to reputational damages that are irreparable.
  • Integrate AI for optimal performance and best results.
  • Make sure that your chatbot should be optimized for different types of devices and across multiple platforms.
  • Your chatbot should be able to direct difficult queries to human support staff.
  • Integration of your chatbot with CRM’s or content management systems is a plus.
  • Multi-lingual chatbots lead to inclusivity therefore it’s important that your bot is trained to communicate in multiple languages.

Last but not the least, your customer service goals should align with your chatbot integration strategy such as reducing costs, cart abandonment rates, increasing response and resolution times, chatbots can help you achieve your eCommerce web solutions goals more efficiently and effectively.

John Smith

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