Generative AI Chatbot in e-commerce. use cases, benefits and statistics tracking | by Master Of Code Global |: June, 2023

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Consumer expectations are evolving, and running a successful e-commerce business requires much more than it did just a few years ago. Customers are more informed and want a fast, seamless and intelligent interface. To meet these new customer demands, e-commerce brands are using AI-driven processes to deliver personalized experiences. And with built-in Generative AI techniques, conversational AI becomes the most effective of all.

Using Generative AI to improve conversational AI text chatbots and voice bots, enables e-commerce companies to create a personalized journey, respond to inquiries faster, deploy point-of-sale (PoS) in popular messaging apps, and more.

  • Conversational AI is responsible for 67% increase in e-commerce sales.
  • AI chatbots will account for $112 billion in retail sales by 2023. Retailers that use word of mouth marketing effectively see annual revenue growth of 7 to 25%. Check out the full list of features Conversational commerce (chatbots in e-commerce) for businesses.
  • E-commerce businesses using chatbots for business communications have an average open rate of 85% and a 40% click-through rate (CTR) compared to (23% open rate and 3% CTR for email).
  • Chatbots help customers save time and find what they are looking for. 73% of customers choose self-service features like chatbots over a live agent (human) conversation to save 10 minutes.
  • Generative AI could have far-reaching implications for the $5.920 trillion global e-commerce industry.
  • A 2023 survey of professionals in the US found that 37% of individuals working in advertising or marketing have used artificial intelligence (AI) to assist in their job duties.

This article delves into the primary use cases of Generative AI chatbots in e-commerce, as well as the benefits of integrating these chatbots.

Generative AI eCommerce Chatbot Use Cases

Generative AI Chatbot Use Case in E-Commerce #1. Personalized product recommendations

According to research, only personalized messages will be attractive to 72% of customers. Generative AI can analyze customer data to create personalized product recommendations for individual customers. These recommendations can be sent as product cards via an e-commerce AI chatbot. This can help increase sales by providing customers with relevant product offers that are likely to interest them and suit their needs. For example, if a client needs help with laundry, cooking, or dressing, this approach can be very effective.

Generative AI Chatbot Use Case in E-Commerce #2. Upselling/cross-selling

Generative AI has the ability to improve customers’ shopping experience by analyzing their current orders and recommending additional products that complement their purchases. This can be achieved by using an AI chatbot that interacts with the customer in a personalized way.

For example, when a customer adds multiple products to their cart, the chatbot can suggest other products that were often purchased along with those products, providing a more customized and convenient shopping experience. A Generative AI e-commerce chatbot can even use language similar to a human sales associate, such as “I see you’ve added X item to your cart. Did you know that many customers also bought product Y along with it? Would you like to add it to your order?’ This personalized approach can help customers discover new products they may be interested in and make additional purchases, ultimately leading to increased business sales. Business leaders, as reported by Forbes, claim that chatbots have increased sales by an average of 67%. Check out the list of the best eCommerce Chatbot Examples that are changing the way businesses interact with customers.

Recommended resources: Augment your customer support with a personalized approach to conversational AI

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Generative AI Chatbot Use Case in E-Commerce #3. Customer reviews

BrightLocal’s online review statistics show that nearly half (49%) of all consumers consider online reviews to be as trustworthy as personal recommendations. This highlights the growing importance of online reviews as a source of information for consumers when making purchase decisions.

Generative AI has the ability to collect reviews from different domains outside of the current website or platform, such as Amazon or Wayfair. This can eliminate the need for customers to research multiple websites to understand product quality and specifications. Instead, they can simply ask for information from a Generative AI-powered e-commerce chatbot, and the chatbot will provide all the reviews and the average product rating. This streamlined approach can help customers make informed purchasing decisions more quickly and easily.

Generative AI Chatbot Use Case in E-Commerce #4. Price matching

Omnichannel sellers often offer similar products on the same sales platform. With Generative AI, an AI-powered e-commerce chatbot can prompt users with all available prices for a product of interest and suggest a comparison result. This feature can help users make informed purchasing decisions by showing them the price range for a given product across different sellers. By providing this level of transparency and convenience, businesses can improve the shopping experience for their customers and increase sales.

Read also: The difference between Multichannel and Omnichannel customer experience.

Generative AI Chatbot Use Case in E-Commerce #5. Product search

Generative AI can be used to help identify a customer’s intended product, even when the correct name is not specified. For example, a customer might make a query to an AI-powered e-commerce chatbot, such as “Find me a product that can do this, looks like this, and is around this amount.” Furthermore, Generative AI provides the ability for e-commerce chatbots to search for products based on broad criteria such as style, such as bohemian.

With Generative AI, a chatbot can use natural language processing to understand a customer’s request and generate a list of product recommendations that meet their criteria. This simplified approach can help customers find what they are looking for more easily and efficiently.

Generative AI Chatbot Use Case in E-Commerce #6. Product stock or type notices

An AI-powered e-commerce chatbot can share information about low inventory and proactively inform users about the most purchased items. By enabling this feature, notifications will be dynamic and updated on a weekly basis, rather than relying on the site’s static “best sellers” filter. If you have interacted with the AI ​​eCommerce chatbot and opted in to these notifications, you may receive personalized and relevant updates from Generative AI about products that may be of interest to you.

Generative AI Chatbot Use Case in E-Commerce #7. Book at different places on the network

When making an appointment or reservation, such as for a hair salon, fitness or restaurant, in a business with multiple locations, AI can provide openings for each location, allowing the user to choose from multiple locations. This is especially useful for users who prioritize date and time over location. The booking flexibility of chatbots has resulted in significant conversion rates. The booking chatbot developed by Master of Code for Aveda has resulted in a 7.67x increase in average weekly bookings since its launch.

Recommended resources: The Complete Guide to Conversational AI in CX

Generative AI Chatbot Use Case in E-Commerce #8. Price history

Generative AI can incorporate pricing history into e-commerce chatbots to influence users to make purchases. This can be achieved by displaying messages such as “lowest price in # days”, which can encourage users to take advantage of the current price and make a purchase. Using pricing history, chatbots can provide users with real-time updates and personalized recommendations, leading to increased engagement and sales.

Instead of developing a new Generative AI chatbot from scratch, Master of Code recommends extending an existing chatbot (if you have one) with this technology. However, if you don’t have an existing chatbot, Master of Code can offer to develop a conversational AI chatbot specifically designed for e-commerce. This approach allows for more efficient and cost-effective implementation of Generative AI technology while providing the benefits of a personalized and engaging chatbot experience for e-commerce customers.

Benefits of Generative AI in eCommerce Chatbot

Benefits of Generative AI in eCommerce Chatbots for Business Owners

  1. Enhanced customer experienceWith personalized messages, contextual search results, special recommendations and enhanced loyalty programs, AI-powered e-commerce chatbots offer a highly personalized experience that improves customer satisfaction and loyalty.
  2. Increased sales and customer loyaltyBuilt-in Generative AI techniques allow conversational AI chatbots to offer advanced order management capabilities, ensuring accurate and efficient order processing.
  3. A convenient shopping experienceCustomers can easily find the right product, make secure purchases and track their orders through a natural language interface, offering a convenient and engaging shopping experience that increases the likelihood of repeat business.
  4. Targeted promotions and offersAI-powered e-commerce chatbots can deliver highly targeted seasonal offers and educate customers about current and upcoming promotions, increasing sales and revenue for e-commerce businesses.
  5. Cost effective solutionConversational AI chatbots are a cost-effective solution for delivering personalized experiences and advanced order management capabilities, allowing e-commerce companies to offer high-quality services at scale.

The e-commerce industry continues to innovate and implement cutting-edge consumer-facing technologies, with Generative AI emerging as a key trend. As a leader in conversational AI, Master of Code partners with multiple service providers to deliver innovative and forward-looking solutions that enhance customer experience and streamline business operations.

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