Have you ever wondered how companies reply to every customer inquiry across multiple platforms? You wouldn’t be the first one. These automatic replies are made by chatbots in e-commerce.
When a message from “Ashley” pops up in the customer support tab on a website to ask you what you need help with, it is most likely you are not talking to Ashley a person. Instead, it is Ashley the chatbot assistant.
These so-called chatbots can be found on websites, social media platforms like Facebook, and even email. Their main function is to infer customers’ preferences and resolve their inquiries.
The value-added created by the chatbot assistant personalizes the shopping experience for customers. Depending on how sophisticated the bot is, it can make or break the customer’s decision to give your company their business as well as their recommendation.
To fully understand how essential chatbots are in today’s world, we will define what a chatbot is. Additionally, we will describe 5 ways chatbots in e-commerce will help run your business. Give Ashley the bot a chance!
What are Chatbots in E-Commerce?
Now that you know Ashley is not a real person, continue to read about what she is and does.
Chatbots in e-commerce are computer programs that simulate a conversation with human users with the end goal of completing a service.
Different companies use them for different things. Traditionally, chatbots are designed to:
- Complete Customer’s purchases
- Offer product recommendations based on customer’s taste
- Provide customer support
Now, you might think it’s unfeasible to spend thousands or millions of dollars in the development of a chatbot. Nevertheless, this is not necessarily the case.
For e-commerce businesses selling on platforms such as Facebook and Instagram, ChatFuel is a quick and cheap solution.
ChatFuel is a no-code chatbot platform you could use to build your own platform in 15 minutes! There is no registration required and it is free. Of course, there are different plan levels available.
The better the plan, the better the benefits.
Why would you want to spend 15 minutes to build your own chatbot when you could use them to make yourself a quick snack? Let’s move on to answer that question by listing 5 advantages of using chatbots in e-commerce.
5 Advantages of Chatbots in E-Commerce
Now that you learned what a chatbot is, let’s explore 5 advantages of using chatbots in e-commerce.
1. Increased User Engagement
Customers tend to engage a lot more in an online website that makes the shopping experience convenient.
With chatbots, websites not only make the purchase experience convenient. They also make the whole post-purchase experience easier to handle.
If there is an issue, customers can conveniently go into the website and engage in a simple conversation with a chatbot that should resolve their inquiry within minutes.
2. Increased Customer Retention and Satisfaction
When customers have an experience that stands out with a business, they are very likely to share it with their friends and peers. Whether good or bad, word-of-mouth has a great impact in customer satisfaction, purchase intent, and repeat purchases.
With chatbots in e-commerce, customers can access customer support 24/7 since there is no human with scheduled hours to be on the phone. The convenience of having 24/7 access will increase their customer satisfaction, especially if the chatbot is efficient when it resolves their issue.
Furthermore, when customers are satisfied throughout the whole purchase process, they will buy from your company again.
If their experiences continue to positively stand out, their customer lifetime value (a measure of customer retention) will increase, making the individual customer more profitable over time.
3. Better Allocation of Human Resources
Chatbots are currently taking over human customer support jobs, at least those that respond to simple inquiries. Nevertheless, it does not mean that thousands of people have to lose their jobs.
Instead, all human resources can be allocated in a department or assigned a job function where they can be more helpful to the company overall.
Some of these jobs include management, marketing, finance, or even customer support handling complex customer inquiries.
4. Minimize Errors
It is not uncommon for there to be human error when humans execute processes. With chatbots, human error is not really a thing. Chatbots are algorithm-based tools, so there is minimal room for error.
With minimal error, it becomes easier to ensure customers are completely satisfied.
5. Bottom-Line Increase in Sales
Many web pages have an extensive checkout process that makes customers abandon their shopping carts during that final stage. Shopping cart abandonment reduces sales due to poor customer satisfaction that can be solved by using chatbots.
Chatbots in e-commerce expedite the whole buying process, which increases customer satisfaction. Therefore, sales increase.
There are numbers to prove the popularity of chatbots and how willing customers are to engage with them!
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