Towards A Better Customer Engagement – Chatbots

Online shopping is already a billion-dollar industry, and according to the National Retail Federation (NRF), the US e-commerce industry is estimated to grow by 8-12% by 2020. Popularized by Amazon and Alibaba, e-commerce is all set to become the future of retail in years to come. While this is good news, how does one ensure that consumers not only visit their websites/mobile apps more often but also purchase products- given that there are hundreds of brands in the market? To begin with, let’s analyze some exciting consumer trends:

71% of shoppers believe they will get a better deal online than in stores

55% of all time spent on retail websites takes place on a mobile device

71% of consumers who have had an excellent social media service experience with a brand is likely to recommend it to others

65% of shoppers abandon a site for various reasons such as poor response time, complex UI, hidden charges, ads, etc.

93% of shoppers said that visuals are one of the top influential factors affecting a purchasing decision

Products are assessed within 90secs, and a quick initial judgment is made whether to buy a product or not

Let us assume that there’s a lot of traffic to your website. However, there’s no significant increase in your sales. One of the most important factors as to why buyers abandon sites is the lack of customer engagement. Most people equate online shopping with ‘window shopping’ as it is technically free, convenient, and makes them feel good about themselves. According to Forrester Research, 50% of potential sales are lost because shoppers can’t find what they are looking for. Once the shoppers are distracted or bored, they are gone and are never coming back. Unlike traditional shopping, online shopping does not cater to the emotional needs of the shoppers, simply because there is no ‘human interaction’ involved in the whole process. As there is no emotional investment, there is no sense of obligation for the buyer to fulfill any commitment by way of purchasing your products.

That’s where bots equipped with Artificial Intelligence (AI),  Natural Language Processing (NLP) and Machine Learning (ML) algorithms come to our rescue. Bots can be programmed to simulate the actual shop assistant’s role, increase customer stickiness and create a personalized shopping experience for the buyers.  By providing menus and quick navigational links, they can help customers find products, customize gifts, offer buying trends/statistics, aid in decision making and ensure that the shopper has a positive and memorable experience. Rather than throwing their products at the buyers, smart retailers invest in technology to build solutions that attract consumers to their products.

Watch the video to learn how GS Lab helps transform the customer experience in Retail Industry.