From product recommendations to one-on-one personal shopping and customer support to order management, the use cases for ecommerce chatbot solutions are endless. This is why the eCommerce industry was one of the first industries to embrace chatbots and conversational AI virtual assistants.
And the need for eCommerce chatbots has never been higher than it is today. Online shopping is one of the most popular activities in the world, and the industry is more competitive than ever. There’s a healthy new pipeline of digital-first retailers built on the idea of customer-obsession and seamless end-to-end experiences. At the same time, traditional brick-and-mortar retailers have accelerated digital innovation in the wake of COVID-19 looking to remove friction while also replicating highly-personalized, one-on-one interactions with customers at scale. In fact, McKinsey reported that in just eight weeks, five years of consumer and business digital adoption occurred during COVID-19.
All of this comes at a time when people are less loyal. Shockingly only 9% of consumers are brand loyal today. eCommerce companies are competing as much on customer experience as price: 61% have switched brands due to poor customer service and more than half of Americans have scrapped a planned purchase or transaction because of bad service. Prioritizing customer service, though, can pay off: 78% of customers say the quality of service is fundamental to earning their repeat business and US consumers say they’re willing to spend 17% more to do business with companies that deliver excellent service.
In this post, we’re diving into the best use cases for an eCommerce chatbot, our favorite eCommerce chatbots of all time and strategies for a successful eCommerce CX automation strategy.
What are the top use cases for eCommerce chatbots?
eCommerce companies using chatbots for customer service can streamline the entire customer journey. Here are our favorite use cases:
1. Immediate responses to common customer service FAQs
Customer service chatbots are one of the most common use cases for AI across industries, but they are especially prevalent in the eCommerce space: From product care and return policies to warranty information and troubleshooting, eCommerce chatbots can provide immediate answers to common questions. This can save a person from scrolling through pages of an online knowledge base or reaching out on a channel that requires more heavy lifting.
2. Personal shopping and product discovery
AI-powered chatbots can understand shopper preferences to curate highly personal product recommendations. Chatbots are also used frequently during the holiday shopping season, helping shoppers find the perfect gift for everyone on their list based on price range, interests and other attributes.
3. Conversational commerce
eCommerce chatbots can provide a seamless add to cart and checkout experience, all within a natural conversational interface across live chat, Facebook and social media pages, messaging apps and SMS.
4. Return prevention
It’s estimated that over 30% of all online purchases are returned. If a shopper is conducting behavior that indicates a return is likely, eCommerce chatbots can preemptively intervene to prevent a return from ever happening. For example, if a person has checked the size guide and added two of the same item in the cart in different sizes, a chatbot can intervene to help the person find the right size. This not only eliminates a customer from having to go through the hassle of returning an item, but also saves the retailer significant costs related to returns.
5. Order management
Making small changes to an order or tracking the status of a delivery are mundane tasks that should not require a human agent. Not only is it costly to have humans perform these simple tasks, but often results in wait times and longer resolution times, and increased customer frustration.
The 7 Best eCommerce Chatbot Solutions of All Time
From upstarts to some of the most established brands,eCommerce companies have launched chatbots to alleviate friction at various parts of the customer experience. Here are our favorite eCommerce chatbots of all time.
Why does Hewlett-Packard have one of the best eCommerce chatbots of 2021?
The Hewlett-Packard Company (HP) leverages Netomi’s AI chatbots to eliminate a major pain point in the customer experience: running low on ink. Real-time signals from HP printers alert Netomi’s AI when a person is at risk of running dry and preemptively intervenes, sending a customer a personalized cart with compatible cartridges and providing a seamless reorder experience. Previously, helping a customer find the right ink cartridge was one of the most costly and time consuming tickets for HP, taking on average, between 7-8 minutes. Leveraging chatbots, HP now does this proactively and instantly.
Why does Sephora have one of the best eCommerce chatbots of 2021?
Well regarded for its innovation, Sephora is often recognized for new and innovative CX programs and was one of the first retailers to adopt AI-powered ecommerce chatbot solutions. One of the beauty company’s chatbots enabled customers to book a makeover with a Sephora Beauty Specialist, which had an 11% bump in conversions compared to other channels. Another conversational AI experience from Sephora was Color Match, which allowed customers to find the best makeup shade for their skin tone and even recommend shades based on other objects like flowers or clothes. One of Sephora’s bots on kik had incredible engagement: an average 10 messages per user per day.
3. Tommy Hilfiger
Why does Tommy Hilfiger have one of the best eCommerce chatbots of 2021?
The TMY.GRL ecommerce chatbot, from the iconic Tommy Hilfger fashion house, was one of the first conversational AI experiences on Facebook Messenger. During New York Fashion Week, fans could instantly shop the same styles seen by models walking the runway, which used to not be available for weeks or months. The Messenger bot also provided a look at the behind the scenes at the fashion show getting shoppers up close and personal with models like Gigi Hadid.
4. Harry Rosen
Why does Harry Rosen have one of the best eCommerce chatbots of 2021?
Meet Haily, the innovative chatbot from Harry Rosen, a Canadian retail chain of 17 luxury men’s clothing stores. Haily scales the same high-touch, in-store experience that its customers love online. Haily helps shoppers find the status of their order, request and track returns, and track and redeem loyalty points. Haily is also a personal shopper, offering personalized product advice and answering questions related to fit, style or suitability.
Why does Zinus have one of the best eCommerce chatbots of 2021?
Zinus, one of the fastest-growing mattress brands, introduced its chatbot Zuri to remove friction from the customer journey. Zuri provides instant support for the most common customer questions like: Where is my order? Can i modify my recent order? How do I apply for a warranty? Chats are seamlessly handed off to an agent within the same window if needed, providing an experience as satisfying as a Zinus mattress itself.
Why does ebay have one of the best eCommerce chatbots of 2021?
There are currently over 1.6 billion live listings on eBay, making it one of the biggest global marketplaces. You can literally find almost anything you’re searching for, but sometimes scrolling through pages of listings can seem daunting. That’s why eBay launched ShopBot. The virtual agent messenger bot helps shoppers find the best deals and products. Users text or snap pictures of items they are looking for (i.e. I want red Nike shoes) and the bot will ask questions to better understand what a person is looking for (sizing, budget, etc.) in order to narrow down the options.
Why does Casper have one of the best eCommerce chatbots of 2021?
A few years ago, the mattress company launched a bot to engage with customers and keep them entertained when they couldn’t sleep. Named insomnobot3000, the bot is “extra chatty between 11 PM and 5 AM” and is a companion for night owls. According to Casper VP Lindsay Kaplan, “It’s kind of obsessed with pizza and is really on the fence about if it’s too late to eat or it should just wait to eat waffles in the morning.” While insomnobot3000 is not addressing a key part of the customer journey, it’s a creative example of an ecommerce chatbot.
What are the pillars for a successful eCommerce CX automation strategy?
While there have been many successful eCommerce chatbots, some have failed to deliver. In order to implement a successful AI chatbot, eCommerce companies need to follow a few key strategies:
- Leverage Natural Language Understanding (NLU)
NLU is a key component of any conversational AI. In the eCommerce context, it is used to allow customers to engage in natural and unnatural language. Chatbots that rely simply on keyword matching lead to frustrating user experiences as the bot gets confused easily.
- Identify common pain point
The customer journey is filled with pain points that can be fixed withinwith in the customer journey (i.e. a person running out of ink) and repetitive tasks that can be easily automated. Start with a few key use cases and expand over time.
- Deploy deep reinforcement learning
The accuracy of your chatbot on day 1, 30 and 60 should not be the same. The smartest chatbots learn and improve over time with every interaction. You’ll tweak the algorithms to ensure the bot is classifying a person’s intent correctly and also uncover new use case opportunities to automate.
- Give the chatbot an on-brand personality
Keep the experience fun and engaging, but don’t clutter the interaction with unnecessary back-and-forth chatter. Get to the point quickly. Ask the necessary questions only. And keep everything on-brand. [Learn more about conversational UX design].
- Launch on the channels where your customers are
Chatbots don’t just have to live on live chat widgets on a website. Interact with your customers at scale on social media pages, messaging apps, SMS, voice platforms and even email.
Leveraging a live chat software on a website and on social media helps eCommerce companies scale 1:1 interactions with customers, 24/7. Customers today expect effortless, convenient and highly personal shopping experiences and when they reach out for customer support, they demand instant resolutions. As the competition within the eCommerce industry continues to heat up, the companies that prioritize the customer experience will be the ones that drive sales and capture long-term customer loyalty.