The article was initially published in WebMeridian blog

eCommerce Chatbots are pivotal for online stores and enterprises, boosting customer experiences and fueling business success. Chatbots offer real-time, personalized support, improving user engagement and retention.

According to Drift, 64% of consumers believe that 24/7 availability is a chatbot’s most significant benefit. Chatbots in eCommerce are leveraged to efficiently handle routine tasks like order tracking, FAQs, and product recommendations, freeing up human agents for more complex issues.

This results in reduced response times, which can enhance client satisfaction.

Moreover, chatbots aid sales and marketing, with almost half of consumers open to chatbot product recommendations.

By providing seamless, convenient interactions, AI chatbots for eCommerce foster client loyalty, with 73% of users willing to engage with brands that utilize bots.

What are eCommerce Chatbots?

eCommerce chatbots are AI-powered virtual assistants integral to online retail. They act as an essential conduit between retailers and consumers, streamlining and improving the purchasing process.

A chatbot is a computer program designed for real-time and automated customer communication. These bots employ a natural conversational tone, whether in text or spoken language, and leverage technologies like natural language processing (NLP), artificial intelligence (AI), and pattern recognition.

Their functionalities encompass answering questions, delivering customer support, collecting feedback, suggesting products, and monitoring engagement. AI chatbots continually enhance their capabilities by learning from previous interactions, enabling them to handle increasingly complex conversations.

In the realm of eCommerce, there are three main types of ecommerce chatbot platforms:

1. AI-driven bots: These bots harness conversational AI and natural language processing to mimic human speech patterns and behavior.

2. Rules-based bots: These bots are programmed to respond to predefined questions posed by customers.

3. Hybrid bots: These versatile bots combine AI-driven capabilities with rules-based interactions.

Many companies that use chatbots for ecommerce integrate them with platforms such as Instagram, WhatsApp, Facebook Messenger, and Google Business Messenger to provide their customers with seamless omnichannel shopping support and experiences.

Benefits of Chatbots for eCommerce Businesses

24/7 Customer Support

eCommerce bots offer continuous, 24/7 support, making sure clients can get answers to their concerns anytime, regardless of time zones or national holidays.

This uninterrupted availability is precious in the e-Commerce industry, where clients may have questions or require assistance outside the typical business hours.

Cost-Efficiency

Implementing bots for eCommerce store operations can significantly reduce the need for extensive customer support teams. This cost-efficiency stems from the ability of chatbots to handle a substantial volume of customer inquiries simultaneously.

They don’t require salaries, breaks, or training, making them a cost-effective alternative to expanding your human support team.

Personalization

Conversational eCommerce bots can provide highly tailored interactions by utilizing client data. Chatbots can offer products more likely to appeal to consumers by looking at their browsing, purchasing, and preference histories.

This degree of customization can improve the purchasing process, boost client interaction, and increase revenue.

Collection of Data

Bots for eCommerce help gather data since they can be utilized to get essential info about customers’ preferences, behavior, and problems. This data is gold for eCommerce companies because it can be used for targeted marketing, product development, and market research.

It lets you understand your clients and modify your products to suit their requirements.

Cart Abandonment Reduction

One of the most significant challenges for e-Commerce businesses is cart abandonment. Bots for online shopping can help combat this by identifying and contacting clients who have left items in their carts without completing the purchase.

They can send reminders, offer incentives, or address concerns, increasing the chances of converting abandoned carts into completed transactions.

Cross-Selling and Upselling

Chatbots are adept at suggesting complementary products or upgrades during client interactions. For instance, when a customer inquires about a specific item, they can intelligently recommend related offerings that enhance the client’s original purchase.

This strategy increases the average order value and introduces clients to new offerings they might have missed.

User Profiling

Over time, chatbots accumulate data about individual users, creating detailed profiles. These profiles contain information about customer preferences, buying habits, and more. This user profiling aids eCommerce enterprises in targeting their marketing campaigns more effectively.

By tailoring product recommendations and promotions to each client’s profile, you can increase the likelihood of making a sale.

Customer Engagement

Retail & eCommerce bots can initiate customer engagement through interactive content, surveys, quizzes, and more. By gamifying the shopping experience or gathering feedback through quizzes, you can ensure customers are engaged and invested in your eCommerce platform, fostering brand following.

Inventory Forecasting

Chatbots can play a role in inventory management by analyzing customer queries. They provide valuable insights into inventory needs by monitoring the patterns of inquiries about specific products and their availability.

This can help businesses optimize their supply chain management, avoid stockouts, and reduce excess inventory.

Competitive Advantage

In the fiercely competitive jungle of eCommerce, a well-executed chatbot can differentiate your company from competitors.

Customers familiar with technology will likely gravitate towards successful or novel eCommerce chatbot use cases, as it indicates innovation and a dedication to offering top-notch customer service.

How to Use a Chatbot for an eCommerce Site

The best chatbots for eCommerce customer service can help you improve customer satisfaction, increase sales, and improve user experience entirely by following these steps:

1. Decide the Kind of Service you Want the Chatbot to Do

It is critical to pinpoint a chatbot’s function and services before integrating it with your eCommerce website. Think about the particular duties you would like the chatbot to perform, like:

• Customer Support: Will it respond to frequently asked questions, offer help, and troubleshoot problems?

• Product Recommendations: Is it meant to suggest products based on user preferences and browsing history?

• Order Processing: Can it facilitate order placement and tracking?

• Data Retrieval: Will it retrieve data regarding the product’s availability, cost, and order history?

Knowing the chatbot’s purpose will enable you to customize its features to meet your client’s needs best and achieve your objectives.

2. Research e-Commerce Chatbot Platforms for your Industry and Choose the Best Fit

Explore various bot platforms uniquely designed for eCommerce websites. Research about:

• Features: Consider features like natural language processing, integrations with eCommerce systems, and scalability.

• Pricing: Evaluate the cost of the platform, including any subscription fees and additional charges for advanced features.

• Industry Relevance: Ensure the platform is suitable for your specific eCommerce industry, as certain platforms may cater better to fashion, electronics, or other niches.

• Customer Support: Choose a platform that offers the best customer service and resources to help you set up and upkeep your chatbot.

Selecting the appropriate platform is crucial, as it will form the grounds for your chatbot’s functionalities.

3. Install the e-Commerce Chatbot

After choosing a chatbot platform, install it by following the instructions in its documentation. This usually entails adding the chatbot to your eCommerce store.

This step might involve coding, configuration, and testing to ensure the chatbot works as expected. It should seamlessly blend with your website’s design and user experience.

4. Set up Chatbot Analytics

Implement analytics tools to track your chatbot’s performance and user interactions. This step is crucial for continuous improvement. Analytic tools will help you:

• Monitor user interactions and identify popular queries.

• Gauge user satisfaction with chatbot interactions.

• Track conversion rates and the impact of the chatbot on sales and customer engagement.

Widely used analytics tools include Google Analytics, Mixpanel, or the features offered by the chatbot platform.

5. Keep your Chatbot Flow Simple and Intuitive

When designing a chatbot’s conversational flow, prioritize simplicity and intuitiveness. Users should be able to interact with the chatbot effortlessly.

• Use clear and concise language.

• Provide straightforward options and navigation.

• Avoid overly complex or ambiguous dialogue structures.

• Offer guidance and suggestions to help users through their queries or tasks.

The aim is to make the chatbot’s interaction as user-friendly as possible to enhance the user experience.

6. Prepare FAQs

Make a thorough list of Frequently Asked Questions (FAQs) so the chatbot has something to refer to when addressing typical user inquiries. The FAQs should cover topics like:

• Shipping and delivery information.

• Return and refund policies.

• Product information and specifications.

• Contact details for customer support.

Well-structured FAQs ensure the chatbot technology can efficiently address frequently encountered customer questions.

7. Integrate with your CRM

Integrate your chatbot with your Customer Relationship Management (CRM) system. This integration facilitates the seamless exchange of information between the chatbot and your customer data repository. Benefits of CRM integration include:

• Personalized interactions: Accessing customer profiles and purchase history to provide tailored recommendations and assistance.

• Order tracking: Allowing customers to inquire about their order status.

• Customer history: Retrieving past interactions and purchasing information to provide better support.

CRM integration enhances the chatbot’s ability to offer personalized and relevant assistance to users.

8. Monitor and Optimize

After launching your chatbot, the work doesn’t end. Continuously monitor its performance and gather user feedback. Use this data to optimize the chatbot’s functionality:

• Review analytics to identify areas for improvement and understand user behavior.

• Adapt the bot’s responses to address user needs and pain points.

• Make necessary adjustments to the bot’s conversational flow and functionality.

• Stay updated with Artifical Intelligence and chatbot trends to implement new features and improvements.

Regular monitoring and optimization are essential to ensure your shopping chatbot remains effective and aligns with your eCommerce objectives.

Metrics to Pay Attention to the Most

When choosing an eCommerce business chatbot, focus on the key metrics:

• Conversion Rate for sales, Customer Satisfaction (CSAT).

• Net Promoter Score (NPS) for user happiness and recommendations.

• User Engagement metrics for appeal and usability.

• Operational metrics like Cost per Resolution and Error Rate for efficiency and reliability.

5 Best eCommerce Chatbots

The following list of vendors offering chatbots for eCommerce websites is based on criteria such as how popular the product is by considering the number of B2B reviews.

The eCommerce AI bot platforms included here as of September 2023 had:

• More than 200 user reviews on platforms such as Capterra, G2, and Trust Radius.

• More than 150 employees, according to LinkedIn.

• An average ratio above 8.5 out of 10.

1. Zoho SalesIQ

Zoho SalesIQ is a customer service and sales solution focusing on live chat, utilizing chatbots and AI for eCommerce businesses and web analytics. It integrates with other Zoho products and popular apps to provide a seamless customer experience.

Pros

• Its report and measure analytics functions work exceptionally well.

• It integrates with Zoho CRM, Zoho campaigns, and Zoho Desk to refer customers to help.

• It comes with a codeless chatbot builder.

Cons

• Its setup is not very intuitive.

• It has a less user-friendly interface than some of its competitors.

Price — $12.75/month

2. Tidio

Tidio is a communication tool that facilitates more effective client engagement for businesses. It uses email marketing tools, chatbots, and live chat in a convenient, all-in-one package. It comes with a wide range of features and functionalities that can be customized for business needs.

Pros

• Companies can personalize the chat widget to match their branding and set up automated messages based on visitor behavior.

• The chatbot is easy to create and manage, with a codeless chatbot builder and AI capabilities.

• It can generate leads, increase sales, and improve customer satisfaction.

Cons

• It is noted that the panel’s design makes it difficult to set up chatbot questions and flow.

Price — From $20/month

3. Intercom

Intercom is a platform for customer communication that enables companies to use business chatbots to interact with and assist customers. A set of applications for messaging, automation, and external customer support are also included in the platform.

Pros

• Reviewers appear pleased with Intercom’s capacity to retrieve contact-specific analytics quickly.

• Clients value the platform’s capacity to monitor team performance efficiently.

• Features and options for customization are adequate.

Cons

• Developing a robust multi-channel program in Intercom can be difficult.

• A few users have mentioned that setting up a program like this without giving up some channels is difficult.

Price — $74/month

4. Twilio

Reputable cloud communications platform Twilio lets companies integrate email, text, phone, and other communication features into their apps. Twilio provides APIs and tools for building chatbots using different methods and technologies, including Twilio Studio, Functions, Autopilot, and OpenAI GPT-3.

Pros

• Users appreciate Twilio’s API capabilities for WhatsApp and various other software integrations.

• Highly customizable features and functionalities.

• Ability to use language models like ChatGPT to create more engaging and creative conversation.

Cons

• Many users have expressed dissatisfaction and delays in issue resolution.

• Charging per message, call, or video makes it costly.

Price — From $0 to $150/month

5. Kore.ai

Kore.ai offers AI-optimized customer and employee experiences using conversational AI technology. They offer a no-code site that can be used to design, create, test, host, and deploy artificial intelligent-rich VAs, process assistants, and conversational digital applications across more than 30 voice and digital channels.

Pros

• High customization includes using custom JavaScript code and different kinds of nodes.

• The multi-engine NLP technique allows chatbots to understand and respond to natural language in a human-like manner.

Cons

• Lengthy integration process with other apps.

• No keyboard shortcuts.

Price — $50/month.

Examples of How Stores Use Chatbots

To understand how the technology is leveraged, here are some eCommerce chatbot examples showing implementation by various brands and businesses:

1. The clothing brand H&M developed a chatbot for the messaging app Kik to complement its eCommerce store. The chatbot is a virtual stylist.

2. Lego, a successful toy company, introduced an eCommerce chatbot named Ralph to its customers. Ralph guides customers through the company’s overwhelming catalog.

3. The e-commerce chatbot for denim retailer Levi’s does everything from customer service to acting as a virtual stylist.

4. Nivea has a straightforward e-commerce chatbot focused on their face care line of business. Its goal is to assist users in identifying their skin type.

5. Ebay’s shopbot aims to streamline the shopping experience with billions of listings added to the platform daily.

6. Customers can schedule a makeup appointment at the closest Sephora location using the Sephora chatbot.

7. The Domino’s chatbot guides users through the easy and entertaining steps of placing a pizza order.

AI Chatbots Are The Future Of Customer Engagement and Service

In conclusion, eCommerce chatbots have become indispensable tools for enhancing customer experiences, boosting sales, and optimizing lead generation in the digital marketplace. Contact us now to find out how eCommerce chatbots can benefit your business.

In addition to helping you select the best chatbot platform, our skilled team can modify its functionality to meet your unique requirements and continuously assess and improve its performance.