Chatbot for e-commerce: Benefits and use cases?

In today’s digital marketplace, e-shops are seeking ways to improve their operations, sales, and customer experience. One such innovation is the integration of chatbots.

This article explores three areas where chatbots impact e-commerce business the most:

- Cost optimization
- Customer experience enhancement
- Conversion rate increase

1. Cost Optimization:

Chatbots offer a practical solution to reduce operational costs, especially in customer support.

By automating responses, chatbots reduce the need for a large customer support team. This automation leads to savings in labor costs and training expenses.

Additionally, chatbots operate around the clock, eliminating the need for overtime pay or extra shifts.

50 - 70 % of requests are usually after-sales questions that can be solved with predefined answers.

The other 30 - 50 % are questions about the products or services. You can either write product answers manually (e-shop with up to 50 articles) or use a ChatGPT-like chatbot that is trained on your product feed.

If you want to learn more about the use of ChatGPT, you can find out more in our article about ChatGPT in E-commerce.

There is also a Footshop.com case study showing how Footshop reduced operational costs by 33%. They automate over 90% of all requests using a GPT-enhanced chatbot.

2. Enhancing Customer Experience:

The user experience is crucial for high customer satisfaction and retention. Chatbots play an important role in this area by providing 24/7 and fast customer support.

Constant availability ensures that customer questions are addressed quickly, regardless of the time. Chatbots also deliver consistent, well-crafted responses, ensuring that every customer receives a high-quality interaction. You can spend more time on your copywriting of the answers as you only need to write them once and then let the chatbot reply with exactly what you wrote.

Furthermore, they will support multiple languages, catering to a diverse customer base.

The chatbot can also connect to an operator if the client asks for it. When the live agent is online it connects, otherwise, it collects contact details and creates a ticket for later.

We wrote a detailed article about customer experience and chatbots.

3. Conversion Increase:

Integrating a chatbot into your e-commerce platform can positively impact your conversion rates.

Based on your business type the chatbot can increase conversion by:

- Collecting leads from web chat

- Narrow Customers Decision

- Using AI to recommend right products

- Proactively outreach to stuck customers

If you want to dive deeper into online conversion topic, check out the article How to increase e-commerce conversion rate with a chatbot.

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Conclusion:

Chatbots are not a trend in the e-commerce world. They are a strategic tool that can drive cost efficiency, improve user experiences, and increase sales.

By leveraging chatbot technology, e-shops can stay competitive and cater to the evolving needs of their customers. Book a demo with us we will together build a scenario that would work for your e-shop.