AI Chatbots in E-Commerce: What You Need to Know
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With the rise of digital technology, the need for personalized, effective customer experience is at an all-time high. According to Statista, 44 percent of users highly appreciate the help of chatbots in finding product information before purchasing, and another 35 percent of customers use the customer support available on websites.
In this article, we will answer common questions about the key factors to consider to build a chatbot for e-commerce, what benefits this innovation will bring to your industry, and how to overcome difficulties during chatbot integration.
Key Use Cases of AI Chatbots in E-Commerce
Below, we’ll look at how AI chatbots can be used in e-commerce and provide real-life examples of companies that have successfully implemented them.
Personalized Product Recommendations
A personalized shopping experience increases conversion rates and helps customers who are not sure what they need.
For example, Sephora’s AI chatbot offers beauty product recommendations based on a user’s profiles and preferences. Customers can also ask the bot questions about selecting cosmetics based on their individual needs and preferences.
Automated Customer Service and Order Tracking
E-commerce chatbot development allows companies to automate the processing of common customer requests, such as tracking orders, handling returns, or providing updates on delivery status. Bots ensure that a company can provide its customers with an instant response any time, 24/7 — and reduce the amount of labor needed. As an example, Amazon uses a chatbot to help customers track their orders in real-time.
After-Sales Support and Feedback Collection
E-commerce AI chatbots play a vital role in customer loyalty, helping to create a continuous line of communication, from answering questions about product usage to collecting customer feedback. ASOS uses sales support to manage their customers’ purchase queries by offering help with returns, exchanges, and feedback. Moreover, the chatbot increased customer engagement with the help of the trading function, attracting even new customers who were not likely shoppers.
Must-Have Features & Integrations for Effective AI Chatbots in E-Commerce
To answer the question of how to build an e-commerce chatbot, it’s essential to focus on characteristics that can benefit your business. In this section, we’ll look at the must-have features that make AI chatbots indispensable in e-commerce and how to integrate them into your business.
Natural Language Processing (NLP)
NLP allows chatbots to understand, interpret, and respond to queries using conversational language, delivering a personalized approach to every customer. We have previously proven that language models in AI chatbots are game-changers, since they bring high-speed performance, multilingual support, and increased customization to your business.
Multilingual Support
This feature allows chatbots to interact with customers in different languages, ensuring that users from various regions can access the same level of service.
Multilingual support can also bring changes to the company’s internal workings: AI chatbots for staff productivity use multilingual capabilities to improve communication across international teams.
Sentiment Analysis
Sentiment analysis allows AI chatbots to assess the emotional tone of customer interactions. After analyzing the mood, chatbots can adjust their tone and offer adaptive solutions.
Product Search and Filtering
Chatbots can help customers by guiding them through the product catalog. The search process is significantly optimized by analyzing preferences and applying filters, as customers are presented with only personalized offers. Chatbot-powered assistance with product search can help to reduce the time it takes a customer to find what they are looking for.
Multichannel Support
WIth the help of multichannel support, chatbots can engage customers on multiple platforms: websites, mobile apps, social media, and messagers, providing a seamless and consistent customer experience across all the common channels users are accustomed to.
For example, in the AI assistant for a corporate ERP system, the integration of multichannel chatbots unifies communications and increases operational efficiency. This optimization is available through synchronization with platforms used for internal communications.
Analytics and Insights
An analytics dashboard extends the capabilities of e-commerce chatbots by continuously tracking metrics, including user engagement, conversion rates, and common queries.
The benefits of these applications can be seen in the solution for an AI chatbot for learning which CHI Software has previously developed. The information received from the chatbot provides valuable data analytics and insights for tracking student performance.
To simplify the implementation process of the above-mentioned chatbot features, we have prepared a table that clearly shows which integrations should take place for the desired result. Find this table and more information in our original article.
