With a projection of global revenue growth of AI from around $643.7 million in the year 2016 to approximately $36.8 billion by 2025, Artificial Intelligence is on a high. And a major chunk of this is going to be from e-commerce. One of the many ways AI has percolated down from tech giants like IBM to e-commerce is through chatbots.
These may be provided over various platforms like Messenger, Slack, Skype, Kik, etc. They utilize an optimum combination of machine learning, natural language processing, and live operators to communicate as smoothly with customers as possible.
According to Ubisend:
- 40% of consumers want deals and offers sent over chatbots.
- 1 out of 5 customers would consider making a purchase from a chatbot.
- Consumers are readily willing to make purchases over $400 from a chatbot.
Chatbots can present products, offers, and discounts of interest to consumers in a tailored manner, help them choose from a roster of products, streamline the purchase, and provide customer service.
If you are still not convinced, check out these 10 brands that nailed AI commerce with the chatbot.
Sephora’s chatbot on Kik works exactly like a dedicated associate. It asks you a few questions through a quiz, helps you browse products, asks you more targeted questions based on which product you browse, and provides recommendations, and personalized tips accordingly. Moreover, purchases can be completed over the app itself without exiting it.
These chatbots help drive business and bring more customers through one of the most accessible channels of all time. They are available 24/7 and successfully keeps a customer engaged. Consumer satisfaction is also higher as engagement is one-to-one and the product list displayed is customized to their needs.
eBay’s tryst with chatbots started with its use of Facebook Messenger to notify bidders around 15 minutes before an auction ends, in case they may want to put in a bid last-minute. From there, they have come as far as ShopBot, a dedicated virtual assistant to help you search for items you need at the price range you prefer.
By typing in what you are looking for and answering a small quiz regarding your preferences for the item, you will be presented with all products fitting the description by eBay. Metrics show that users are 3 times more likely to enquire deeper about products on Shopbot than on the eBay platform.
The SnapTravel bot on Facebook Messenger helps people to find hotels by providing recommendations based on the travel city, dates, and other specifications you type into it. It searches over 100 hotel sites to find the right ones for you and then you can easily book them through the bot itself.
You will also find many lucrative offers and deals exclusively through the app. In case you have a problem, there are also live agents available 24/7 to assist you if you need it.
Another company successfully using Kik chatbots to increase sales is the lingerie and clothing brand, Aerie. Besides the usual chatbot functionalities of providing products to browse based on personal choices, the bot also has a unique THIS/THAT quiz for several product pairs that help it learn the customer’s tastes.
Then it recommends whatever the customer wants to buy using those learned preferences as filters. AEO’s CTO himself has confirmed the phenomenal conversion success of the chatbot
1-800-Flowers is a great example of how a mature, old-style business can adopt technology to modernize their sales methods. One of the first to use Messenger bots for e-commerce purposes, the bot helps a customer choose gifts and flowers based on the occasion, makes suggestions based on that, and even helps the customer discover great gift ideas. After the purchase, the bot also sends shipping updates for the package.
#6 Spring Bot
Spring Bot is a Facebook Messenger bot used by fashion brands such as Givenchy and Balenciaga as an online personal shopping concierge for their customers. The bot determines your needs and preferences through multiple-choice questions, like what you want to buy, size, price range, etc.
The entire process of purchasing, receiving receipts, and shipping notifications as well as making enquiries are completed by the bot itself.
One of the most versatile bots in the market is the H&M Kik bot. It creates a style profile for you by asking you to select what you like among a number of choices it gives and then, asking you your style themes like classic, casual, grunge, or boho.
It then recommends products based on that profile. Besides shopping, you can also create style and outfit ideas on the bot, browse others’ ideas, and vote them.
#8 Pizza Hut
Just to put things in perspective, Pizza Hut made its first online sale even before Amazon. It has always been one to enthusiastically adopt modern technology, including the chatbot. You can use Facebook as well as Twitter to order their pizza online, and also reorder your favourite pizza with just one click.
You can receive notifications of the latest promotional offers and ask questions too. There is no need to download anything else – just one needs to follow them on FB or Twitter and set up the payment method. It’s as easy as it gets.
Burberry’s chatbot journey is a full arc. It started as a sneak-peek community app to give ‘behind-the-scene’ peeks into their September 2016 Fashion Week collections. But since then, it has added the functionalities to follow their runway shows, pre-order items, and browse items and gifts.
The bot also gives fashion advice, makes recommendations, and provides customer service, including live chat.
Trim started with chatbots over SMS and has extended it to Facebook Messenger now. It has simple bill management functions. You can use it to cancel subscriptions simply by scanning the bill for a recurring charge and sending a “Cancel [service/product]” command text.
You can also negotiate for savings on monthly bills and Trim will get a share of the savings. The goal of Trim is simple: Save money easily.
These are just a few e-commerce brands that are already using chatbots to drive sales, build a better brand visibility, reach their target audience, facilitate customer service, and grow their online store business.
Today, we can comfortably say this trend is now more likely to grow, and every e-commerce brand now needs to leverage this technology if they wish to remain competitive in the market.