How Can Chatbots Help E‑Commerce Businesses?
Chatbots can be found in multiple settings including social networks as well as e-commerce websites.They are becoming more popular because they can handle customer support quickly and easily and theyalso increase sales and customer retention.
Predictions are that chatbots will be used in over 80% of online retail stores by 2020 so your e-commerce business must get to grips with this technology to avoid being left behind.
Here are the top 6 ways that a chatbot can help your online store.
1. Better Customer Engagement
Customers prefer messaging systems rather than talking to a business on the phone but you must respond quickly to keep them engaged. Even delays as short as 5 minutes have been shown to negatively impact engagement so chatbots can make all the difference to your bottom line.
2. Increased Sales
Using a chatbot in a shopping app or website can provide your customer with instant responses to their questions and provide them with promotions and deals. Surveys have shown an increased spend on sites using chatbot technology.
3. CAC Reductions
CAC (Customer Acquisition Cost) is a key metric when looking at how much a company spends to attract their customer. The lower the cost, the better from a business perspective. Chatbots help keep the customer on your website, provide them with instant answers to their queries and increase conversion rates.
4. Reduces the Cost of Customer Support
The integration of a chatbot that can answer key questions about products and provide other forms of 24/7 support online will reduce the cost of customer service by around 30%. The chatbot takes over much of the human interaction, referring the customer to a human only when necessary.
5. Increased Brand Loyalty/Retention
Providing your customers with 24/7 support and the ability to give relevant and personalized product recommendations is a feature of chatbots. This leads to greater customer loyalty and retention.
6. Sales Funnel Improvements
Customers who use a chatbot can find the product they want and buy quickly, therefore the chatbot itself becomes a useful sales channel for e-commerce businesses.
In conclusion, chatbots provide a vital resource for online businesses, and there are plenty of proven use-cases where e-commerce retailers have made substantial gains from adopting the trend.
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