We’ve all seen chatbots on the bottom right. If we engage with them, sometimes they work pretty well, and other times… Well, not so much. The New York Times recently wrote an article on chatbots where they described trying and failing to find a solution with a chatbot as a “spiral of misery”.
But we also know that chatbots can be super effective (just ask WebsiteClosers.com clients). So, how can we use chatbots effectively?
Joe Bush is the CEO of The Chat Shop, which harnesses the power of conversation and defines the nature of every visitor’s online journey.
Deal Closers is hosted by Izach Porter and is produced by Earfluence.
You often see a chatbot for ecommerce website on the bottom left corner of the page, serving as customer support. Some people engage with this self-service tool with much success and find what they’re looking for, while others go into a spiral of misery when they can’t find the answers.
Most brands have moved their operations online. And with the right programming, chatbots can be very effective. In fact, the IRS has started implementing it on irs.gov.
Bush also points out that chatbots are best used for ecommerce businesses within the considered purchase market. For people buying daily items that are easy to understand and compare, a chatbot won’t make much sense in the pre-sales phase. On the other hand, they are an effective tool when a buyer needs to take time to consider the purchase.
Does your business really need a chatbot? In this section, we explore the chatbot benefits for ecommerce owners.
The Chat Shop users saw an increase in conversions. However, Bush pointed out that the percentage of increase varies across different brands, markets, and levels of considered purchase, so there is no fixed figure. His team, however, discovered from the people they talked to that conversions were five times higher and five times more likely to convert. In one transaction, users spend between a range of 10% and 20% more. Everything translates to a 10% to 20% revenue increase.
Yet another major benefit of chatbot solutions for ecommerce site owners is that they can track every customer interaction and identify points where users drop off during the purchasing process. For example, when customers encounter issues with delivery options or discount codes, chatbots can provide immediate solutions, keeping customers engaged and helping drive conversions. By addressing these challenges in real-time, chatbots not only boost the customer experience but also improve digital marketing for ecommerce conversion rate and average order value. Implementing chatbots can result in a strong return on investment by ensuring customers feel supported throughout their journey.
These are just two of the many benefits of chatbots for ecommerce. Know more about how they can help in the following sections, where Bush presents how to bring out the real power of chatbots, ecommerce marketing trends conversion rate, and case studies on their clients.
To successfully implement chatbots for ecommerce websites, businesses should consider the three stages of the customer journey: pre-purchase, during purchase, and post-purchase.
In the pre-purchase stage, chatbots can address common questions about products, pricing, and availability, helping potential customers make informed decisions. During the purchase stage, chatbots play a crucial role by resolving issues such as applying discount codes or clarifying return policies in real time, reducing the chances of cart abandonment. Lastly, in post-purchase, chatbot platforms offer support by assisting with order status, order tracking, handling returns, and resolving complaints, ensuring a smooth overall experience.
Chatbots should be implemented on social media platforms when there’s a clear goal in mind, such as enhancing customer support or engaging users through interactive experiences. Before implementing a chatbot, businesses should ask themselves what they aim to achieve. If the primary purpose is support, chatbots are useful for handling common queries quickly, offering instant responses, and escalating to human agents when necessary.
For a more interactive approach to building Messenger bots, Bush suggests engaging users in fun, gamified experiences that align with the social aspect of these platforms, helping to build stronger brand connections rather than directly driving sales.
Ecommerce conversion marketing can only be effective if you improve customer experience by delivering value. It won’t be enough if you focus on a design that only benefits your online store.
There are two main approaches to chatbot design: menu-based and natural conversation bots. Menu-based bots are simpler and resemble an IVR system. They guide users through a series of predefined options. This straightforward method is easy to implement.
Natural conversation bots, on the other hand, offer a more personalized and intuitive experience by mimicking human conversations. However, these bots require more effort to build and continuously optimize. Businesses should patch regular updates to adjust to how customers communicate and ask questions about products or services.
In this episode of The Deal Closers Podcast, Bush presents a case study of how CBS Bahamas, a home improvement store, successfully integrated a hybrid solution combining chatbots and a human team, both available on live chat 24/7 to answer questions.
This approach allowed the business to capture the entire customer lifecycle, addressing pre- and post-purchase inquiries effectively. The results were impressive, with over a 20% chat-to-sale ecommerce marketing conversion rate and an even more significant impact during off-hours, where sales increased fivefold. This success was driven by ensuring that someone knowledgeable was always available, enhancing the customer experience and delivering results.
In other markets, particularly high-end jewelry, a similar hybrid approach has been used. Here, chatbots assist in lead generation and sales, with human support adding expertise for more technical or personal product ranges, like custom engagement rings. Since many customers go through this process only once, having a knowledgeable guide available fosters confidence and trust, leading to stronger engagement and improved sales results.
This case shows how seamlessly integrating a chatbot into operations and combining it with human expertise can significantly enhance customer interactions, especially in industries requiring real-time, personalized support.
Make your conversational marketing even more successful by treating chatbot development as an ongoing process. According to Bush, it’s a mistake to consider it done after building, testing, and launching a conversational chatbot for ecommerce stores. Analyze how customers interact with the bot on a periodic basis and make adjustments to ensure it meets their changing requirements as necessary.
While conversion rates are generally an excellent metric to track when it comes to chatbot performance, there are other KPIs that will help determine its effectiveness on your target audience.
The Chat Shop offered their conversational chatbot solution for ecommerce clients in the USA. However, they also have clients serving non-English speaking customers. Bush developed an application that enables human chat agents to speak another language through a middleware that translates into the language of the customer and the agent.
Nowadays, with the implementation of AI and natural language processing (NLP), it is easier to reach more global audiences.
But even with these advancements, the reality is that not all people will welcome the idea of engaging with a conversational chatbot service for ecommerce. Businesses need to be transparent about their services to gain their customer’s trust. Moreover, they should look for a balance between the use of a conversational chatbot solution for ecommerce and human agents. As Bush has suggested, have chatbots solve common queries and have human agents ready when there are issues that need escalation.
In the coming years, we can only see further advancements in AI chatbots. They will evolve into a central tool for improving the experience of customers and increasing their engagement with the brand.
AI now has emotional awareness and can produce empathetic responses. Moreover, they will improve their ability to connect with and respond to customers’ needs and feelings. Expanding their presence across various platforms, such as social media and voice assistants, will enable smooth and consistent interactions, contributing to stronger customer satisfaction and loyalty.
Conversational marketing will have greater penetration as brands can start integrating their chatbots into their official accounts on messaging apps. It will also be more immersive with the developments of augmented reality (AR).
AI allows marketers to sift through extensive customer data, including browsing habits, purchase patterns, and social media activity, by utilizing sophisticated algorithms. This level of analysis equips companies with the ability to deliver highly customized experiences. Through AI-powered insights, businesses can personalize recommendations, promotions, and content based on unique customer preferences, strengthening overall customer relationships.
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