Conversational AI solutions / e-commerce: What is the current situation?
In an atmosphere where staying relevant is the biggest hassle, e-commerce platforms have more than managed to keep their heads above water. The ever-evolving state of innovation catapulted by new, emerging technologies and not to mention the COVID-19 pandemic and the ensuing lockdown situation, has forced economies to lean heavily on digitization to get things done.
As such, the past year has revealed how significant e-commerce platforms have been to the world at large. As per a recent industry survey published by Euromonitor International, 72% of retail professionals concur that the pandemic has sped up digitization plans by 1 to 2 years at least. 58% of them believe that the crisis has fast-forwarded technology-related product launches within their organization.
This brings us to the subject of conversational AI technology, which through recent research, suggests that such technology will account for $112 billion in e-commerce sales by 2023. The research further indicates that approximately 47% of customers are willing to complete purchases with the assistance of conversational AI technology.
Let’s look at the top 5 advantages that Conversational AI platforms can bring to the e-commerce industry.
5 top benefits conversational AI offers e-commerce businesses
1. Improves Customer Personalization
E-commerce businesses thrive on customer satisfaction and Conversational AI assistants bring that to the table through several means – one of which is through personalization. With the aid of conversational AI platforms, businesses can collect useful information about prospects and customers.
Say, I own an e-commerce website that sells soaps. When my target audience or prospects visit my site, my conversational assistant will then gather data to understand what the visitor’s preferences and interests are when it comes to buying soaps.
In this instance, the AI assistant will ask questions such as:
- Does the visitor prefer organic soaps to store-bought ones?
- What kind of essential oils do they like in their soaps?
- Do they buy soap in bulk?
Once my digital shopping assistant has collected this information, I can get to customizing my product pages according to the data collected and build customer loyalty. I can also use the information gathered, categorize it as product recommendations/suggestions and work on it for future product releases.
If some products are out of stock, my AI assistant will let prospects and customers know of the same and go so far as to make alternate suggestions. If a customer is curious about the date of delivery, the chatbot will let the buyer know such details as well.
2. Decrease in Customer Support Costs
When it comes to providing 24/7 customer support, even though it is achievable, it is costly and even unnecessary. Research shows that with the aid of conversational AI platforms, businesses can reduce customer support costs by 30% simply by introducing an FAQ digital shopping assistant into their portal.
Other recent studies reveal that 64% of online shoppers expect 24/7 customer support with 55% of them agreeing that getting answers to simple, relevant queries regarding products will more than satisfy their curiosity.
As such, online portals can connect prospects and customers to a real person once a buyer has more complex questions that need answering.
3. Cart Recovery
E-commerce business owners and marketers are soon beginning to realize that there is much revenue in abandoned carts. The reason being that many prospects tend to forget the fact that they were in the middle of making a purchase either because they got distracted, opened another browser/application, or need time to think about their purchase.
In such a scenario, conversational AI assistants can remind prospects of their waiting cart, suggest that they head to checkout, make the payment or clear the cart. As a result, even if buyers decide not to buy all the items, they will at least consider buying a couple of them.
4. Customer Engagement Increases
It’s a well-established fact that prospects prefer businesses they are able to message. What is even better is having tools that will keep prospects engaged in such a manner that one leaves very little time between receiving a message from a customer and responding to them.
Recent surveys indicate that if an e-commerce platform’s response rate is beyond 5 minutes, they’re 21 times less likely to convert into actual leads.
With the aid of conversational AI assistants, retail businesses can respond immediately thereby increasing customer engagement exponentially.
5. Product Guidance Will Become a Priority
Making purchasing decisions on an online retail store can sometimes prove tricky. Prospects could get lost in a sea of products that are all similar to each other and make them undecided on their final choice
In such a scenario, a digital shopping assistant can be a source of guidance and prompt customers into buying a product that is best suited for them.
Instead of skimming through a plethora of similar-looking products, reading each of its descriptions, reviews, pros & cons, and so forth, digital shopping assistants can ask you relevant product-related questions that will help customers to narrow their search.
As evidenced by the aforementioned points, there is a whole gamut of reasons as to why online retail store owners should consider investing in conversational AI platforms. Since customer service, support and engagement is key to the success of any business, AI assistants are undoubtedly the one-stop-shop solution for it all.
As a digital shopping assistant, AskSid is poised to disrupt the online retail industry with its proprietary Retail AI Brain, a unique knowledge repository converting raw brand data into tweet-sized Q&As, product tags, intents, and utterances. This powers impactful shopping experiences and drives conversions across chatbots and voice bots, while simultaneously extracting deep customer insights, helping brands uncover new business opportunities.
Looking to deploy a vertical AI-based digital shopping assistant for your retail business?