1. Data & Insights

Online retailers continue to leverage chatbots to enhance customer experience

Most modern day online consumers expect timely customer service similar to that offered at bricks and mortar shops.

According to a 2023 write-up by SuperOffice CRM, up to 46% of customers wished to receive responses faster than four hours. Yet, most businesses take up to 12 hours to respond to emails.

With AI powered chatbots, the wait time is reduced – online retailers can now offer personalised assistance, quick resolutions, and round-the-clock support.

The growing importance of real-time interactions

Imagine a customer visiting your online store, and as they browse through, a chatbot appears and greets them by name. If they have any inquiries about your products, the chatbot offers them instant feedback. They can even find tailored recommendations that align with their preferences.

With more customers preferring such real-time interactions, businesses are now incorporating them to stay relevant. In industries like online entertainment, specifically iGaming, game providers leverage chatbots, in-game chat features, and other tools to enhance prompt interactions.

This way, fans can find various game variations like free bingo to play on multiple devices as they chat with other players in real-time. If they encounter any hurdles, they can easily access and contact customer support through the AI powered tools.

Such real-time interactions have become crucial in enhancing the competitiveness of a business in such a fast-paced world. In support, Clootrack suggested that organisations that offered such services increased their retention rate by about 55%.

The 24/7 availability of chatbots allows retailers to address customer inquiries, resolve issues, and provide product recommendations beyond the close of business.

By leveraging natural language processing (NLP) algorithms, these tools develop a deeper understanding of customer inquiries and respond with relevant information swiftly. Human agents have more time to focus on complex issues as routine inquiries are automated.

Driving business growth and customer loyalty

By delivering seamless experiences, chatbots can enhance customer satisfaction and encourage repeat purchases, driving growth.

A good example is Burberry, a luxury fashion brand that increased its online sales by up to 60% when it integrated a chatbot on its website. As over 50% of customers are open to using chatbots, conversational AI can be a great way to engage more consumers.

With techniques like sentiment analysis becoming popular, capturing customer feedback and insights from chatbots is now possible. This information may vary from customer preferences and pain points to suggestions for improvement.

Through the analysis, businesses can gauge satisfaction levels by assessing the emotional tone expressed in customer feedback.

Satisfied customers are essential for a retailer’s growth as they are more likely to promote your brand to their social circles and foster organic growth. Exploding Topics reported that 83% of customers were willing to refer businesses that offered them positive experiences.

In addition to fostering satisfaction, chatbots can help in upselling and cross-selling initiatives. These AI powered tools can increase average order value and maximise income potential by identifying opportunities to offer upgrades or complementary items based on customer interactions.

In conclusion, integrating chatbots into online retail customer service strategies offers many benefits, including personalisation and the potential for driving business growth. As technology advances, chatbots will evolve to provide even more sophisticated capabilities.

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