How Conversational Chatbots Marketing is the Future of eCommerce
How Conversational Chatbots Marketing is the Future of eCommerce
If you haven’t been living under a rock recently, then you must be familiar with the latest marketing trend- chatbots. They are everywhere. Brands are using chatbots for almost every possible task in customer service, better sales and marketing, effective team communication, etc. The results have been fruitful and it’s safe to say that bots are here to stay.
Different investors from different industries have faith in the potential of chatbots and hence they are devotedly contributing to the growth and development of our bot friends. With technology advancements fueling the growth, bot technology has come a long way indeed. From simple menu/button-based chatbots to contextual AI chatbots, we have the luxury of options to choose from.
By the end of this article, I will make you go through the basics of chatbots and their workflow, the importance of chatbots in eCommerce and how they are shaping the future of marketing.
Chatbots: Basics
Albeit we use and interact with a chatbot many a time, we may not be aware of its basic terminology and working. Let’s clear the air around the chatbot buzz.
What is a chatbot?
Chatbots are small computer programs used to simulate the method of human conversation and interact with real people automatically to help them with their issues and complete their tasks.
Chatbot marketing may have thrived over the past several years but bots have been around for some time now. The concept dates back to 1950 when Alan Turing published his seminal paper on artificial intelligence, Computing Machinery and Intelligence. Developments and advancements on the concept led to ELIZA, a simple program given birth in 1966 by Joseph Weizenbaum. Since then, the growth in chatbot technology has only seen the rise and surprised us with its potential in improving sales and marketing.
What is a chatbot script?
Chatbot scripts can be defined as pre-planned conversational messages which the bot answers as a response to a user’s query. Depending on the choice and intention of the user, the bot will follow a specific conversational flow. All responses in the flow combine to make up the script.
A chatbot script is vital for a conversation. The script of a chatbot depends on business goals and the buyer journey. There are some points to be considered while writing a chatbot script:
Be focused on your goals
Keep it short and simple
Be clear in what you convey
Be natural and not robotic
Alter your responses
Your chatbot script and responses also depend on what type of chatbot you are implementing which brings us to our next section….
Chatbots: Types
To think that all chatbots are similar in their workflows and processing is incorrect. Thanks to deep and extensive research on bots, we now have a number of chatbot types to choose from. Some business tasks can easily be carried out by basic bots while some of them require advanced bots.
Let’s check the different types of bots available in the market:
Button/Menu-Based Chatbots
As the name suggests, these chatbots present the users with multiple menus or buttons to choose from. Depending on the button that a user chooses, the bot lists out the next set of button options for the user to choose from. This forms a multilevel hierarchical structure of chatbot responses.
These are the most widely used chatbots out there owing to their simplicity and uncomplex nature. These are apt for answering presale queries and multiple FAQs and navigating users through your online store or website. When it comes to complex equations involving a lot of variables, these are rendered ineffective.
Keyword-Based Chatbots
This type of chatbots uses Artificial Intelligence(AI) to pick and capture the keywords in the user’s query. Using and processing these keywords, the bot answers the customer query. It works like some obsolete search engine which makes full use of the keywords entered and replies accordingly.
The advantage with these is that the bot will only answer the content which has been pre-loaded in it and nothing off-topic. Their limitation is kind of linked to its advantage. These will not be able to catch misspellings and are highly contextual.
Natural Language Processing Chatbots
These are the most advanced ones of the lot and use Machine Learning and AI to deliver the best possible experience to the user. The architecture of a conversational AI chatbot is a bit complex for non-techies but it delivers what it promises. Remembering user preferences and specific user conversations to improvise over time is their highlight. Natural Language Processing chatbots are highly contextual in nature with a data-centric approach to interacting with users.
They even understand and take account of misspelled user queries to provide a great user experience.
In the example above, you may notice that the bot is quite smart in asking questions, initializing the conversation, and continuing the flow.
Different Ways Chatbots are Revolutionizing eCommerce
Understanding chatbots is not that hard as it seems. The ease with which they integrate with other applications makes them a top choice for different industries. Amongst a plethora of use-cases and relevant industries for chatbots, one clear business field which is being revolutionized is none than other eCommerce. Online store owners around the globe consider chatbots as the ultimate solution to their common problems.
Let’s go through the ways bots have bettered the eCommerce game both for store owners and customers:
Better User Experience
Probably the biggest advantage of including conversational bots into your eCommerce schemes is simplifying the user experience and offering unique customer experiences worth remembering.
We will take an example to understand this.
One of the top beauty product brands, Sephora released its personal assistant bot integrated with messaging apps like Kik and Facebook Messenger. The standout feature of their assistant is that it allows users to try new looks and beauty products from the brand. Users get a clear idea of how a shade of a new lipstick or mascara would add to their facial appearance and overall look. Users provide their images and the bot takes care take of the rest.
This saves the customer from the hassle of visiting a physical store and trying out the product there. Though the bot simulation cannot replace the natural look it definitely takes the user experience to a new high.
Similar to Sephora, there are a number of brands which are using chatbots to enhance the online user experience and making their online commerce a lot better.
Improved Customer Service
“A business that makes nothing but money is a poor business” — Henry Ford
We all understand that providing amazing customer support is the number one priority for all businesses. There is no business without customers and brands strive hard to deliver a cent percent client satisfaction rate.
Chatbots have found their most important use-case in assisting customers. In fact, a lot of companies incorporate bots in their business strategy just for this sole purpose.
One of the biggest challenges in customer service is being 24*7 available for our customers. Bots solve that issue for good.
Consider a company and support team that’s available for you at any hour of any day of the week!
A lot of people are engaged in work in the typical 9–5 working hours of weekdays just like our support representatives. The idea of contacting support at late hours or weekends was never bigger and with chatbots at our service, we are at a hefty competitive advantage.
It definitely leaves an impression on the users and builds trust. They are ensured that they are in good company and spread positive word-of-mouth.
Data-Driven Product Recommendations
The rise and rise of voice search smart devices and artificial intelligence has exceeded the expectations of marketers and customers around the globe. More and more people are opting for smart speakers like Amazon Echo, Google Home, etc. A combination of technologies like AI and voice search is changing the way people shop online.
One advanced leap in this regard is the incorporation of chatbots into home devices and appliances which is already happening around us. LG’s SmartThinQ Home Automation hub is a perfect example. Its integration with Amazon Alexa will let you have great control over your home appliances. For instance, it will automatically estimate the amount of detergent you use for your laundry and automatically reorder it when needed.
When technologies coincide with each other, there are endless use-cases and possibilities. Same is the case with conversational bots and eCommerce.
Automated Lead Generation and Qualification
A medium to large inventory is quite common for eCommerce businesses and the customer can sometimes be lost in finding the required item. Chatbots can be your solution to easily lead customers to what they are looking for and make their life easier.
The high scalability of chatbots enables them to initiate a conversation with website users and segregate interested users. When we add natural language processing and artificial intelligence to a bot’s workflow, they actually perform better at lead generation than our regular live agents.
With time and technology flowing smoothly, some chatbots have especially been targeted at sales enablement. These gather and store customer information over time and automate information transmission to sales teams for closing the deals.
Chatbot lead generation is slowly proving to be the favorite application of chatbots for marketers as it drives in a flood of leads for businesses worldwide.
A Mine of Customer Data
Though it all boils down to using the data for better consumer interactions and sales, this is one of the biggest use cases of chatbots. We tend to share a lot of information while having a conversation irrespective of the fact whether it is a human or bot at the other end. Conversational marketing has this unique advantage of learning and using consumer habits to good effect.
Chatbots store a lot of consumer data such as past purchase history and buying habits over time. Next time the same customer visits the store, the data is used to provide a seamless user experience and convert them more easily.
This rich consumer data can also be used to advertise to these customers. Knowing your customer’s habits and having a track of their purchase history is like having a foot in the future. You can present the right advertisements to them at the right time which will result in better conversions and sales.
Rewarding Customer Loyalty
Businesses spend a substantial amount on customer loyalty programs to reward their loyal customers and convert them into brand advocates. Nothing wrong with the practice but chatbots have found one of their applications in rewarding customer loyalty as well.
Leading fashion brands are setting great examples of using conversational chatbots to interact with tech-savvy customers. Burberry, the British luxury brand allows its customers and fans to do a plethora of things using its bot.
From checking “behind the scenes” looks from fashion shows to buying the apparels directly from the app and from sending push notifications to users who previously interacted with the bot to offering live chat with a company agent, Burberry has really raised the bar with its advanced chatbot.
Another leading brand to try chatbots for enhancing user experience is the luxury watch company, Audemars Piguet.
The company, amongst the first watch companies to use a bot, unveiled its chatbot recently which allows users to browse through the best watch collections including the most popular pieces. The customers can assess all the features of an individual watch or find and visit the nearest store to try the watch in real life.
Chatbots are a unique and effective way to connect with regular and loyal customers and making them feel valued.
Closing the Deals
Though many businesses still prefer a live agent or representative to complete the sale, the scenario is gradually changing. Bots have the capability of selling directly and placing the orders for users without the requirement of some human touch.
Earlier, some people used to criticize bots owing to their inability to complete orders and sales. Nowadays, the tables have turned. More and more people prefer chatbots because they know that they will be able to complete their purchase via bot.
A specific type of bots called sales chatbots is being implemented by companies to better their sales funnel. These also provide the option to follow up with clients who did not convert in the first attempt.
Chatbot: Statistics
Chatbots, even for eCommerce, are already here. It’s nothing new. The usage of chatbots has grown exponentially and doesn’t seem to slow down any time soon.
Size of the chatbot market worldwide, in 2016 and 2025 (in million U.S. dollars)
- In regards to eCommerce, 34% of respondents said they would prefer to answer questions from AI via chatbots or virtual assistants — Chatbots Magazine
- Live chat software has a 73% satisfaction rate as a way for customers to interact with businesses — G2’s Facebook Chatbots Guide
- Chatbots can save up to 30% in customer support costs — Invespcro
- 21% of consumers believe chatbots are the easiest way to contact a business — Ubisend
The above stats are enough to prove the domination of chatbots across different business industries including eCommerce. These also emphasize on the fact that how easily people are getting used to conversational commerce and how well conversational bots are being received by digital-savvy audiences worldwide.
Conclusion
We live in such digital times where the competition is stiff and the customer’s buying decision is totally dependent on the experience he/she receives. Customer expectations know no bounds and it’s getting harder for brands to deliver every single time. Providing a seamless user experience is not possible by human efforts alone.
Enter: Conversational Chatbots
From being a totally imported and intimidating technology to breaking through into people’s day-to-day schedule, chatbots have made some worthy progress. The ease with which chatbots integrate with other applications and their multiple use-cases make them widely accepted. Ecommerce has already incorporated chatbots in its core marketing strategy. Chatbots also have their impact on landing page conversions and SEO of an eCommerce website.
Just like any other technology on the planet, there are challenges and opportunities accompanying our AI bot friends. If you are yet to explore the promising world of conversational chatbots, now is the right time to do so. If you are an online store owner anywhere in the world, it’s even more important.
What opinion do you have of chatbots as the future of marketing and commerce? Are you already using chatbots? Why not?
Please have your say. I am listening.
