Learn how chatbots can help brands grab customers’ attention and direct them towards checkout.
Ecommerce is constantly evolving to include personalization. It bridges the gap between in-person and digital shopping experiences. Online shops have always had an advantage over brick and mortar stores, as good salespeople are able to observe shoppers and make suggestions based on past experiences and judgments.
Today’s retailers can provide convincing product recommendations, which are statistically more likely to result in conversion, up-selling, and revenue, thanks to the tremendous advancements made in Artificial Intelligence.
Chatbots, the latest development in B2C, are designed to replicate the in-person shopping experience. Tidio claims that chatbots can cut customer service costs by up to 30% by responding in real-time to customer queries.
What is the process? Learn how chatbots can enhance your personalization efforts.
What does Chatbots do?
Machine learning is advancing with the invention of product recommendation engines. In a process known as collaborative filtering, artificial intelligence engines use transactional and behavioral data from webshop customers to create shopper profiles. Advanced algorithms can predict which products a customer will be most interested in by comparing them to shoppers with similar profiles. This is done using their browsing history, past purchases and current product.
Other layers of data are also used in powerful product recommendation tools, such as keyword-based descriptions or product tagging. These layers allow the algorithms to uncover additional product relevance and insights.
Chatbots use the same powerful machine learning to provide personalized recommendations, which enable customers to find relevant products quicker.
Benefits of product recommendation chatbots
They have been a key part of digital sales growth since the time that Amazon started using them to promote product discovery. Since then, successful retailers have followed their lead and created product recommendations that are tailored to each customer interaction.
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Chatbots offer a similar level personalization.
Chatbots add another layer to the already powerful tool of product recommendation. Similar to ecommerce popups they draw shoppers’ attention to relevant products and keep them on the page (and eventually towards checkout).
Chatbots can be programmed with answers to common questions. However, they also make use of the cutting-edge value of natural language processing to understand customers’ questions and offer relevant product recommendations. This improves customer experience and makes it faster to shop. It also gives your artificial intelligence engine more data so that you can make more accurate predictions about what products may be of interest to a consumer.
Ecommerce Chatbots: Examples
SALESmanago Live Chat
SALESmanago’s Live Chat Bot combines behavioral data and the interaction of the customer with the chatbot to create persuasive, personalized recommendations for customers. The chatbot can be used by retailers to send a variety messaging.
Sephora is a leader in the beauty industry for their innovative approach to providing unforgettable ecommerce experiences to customers. Sephora Reservation Assistant is their latest innovation. Sephora can now answer customers’ questions in a conversational, automated manner and make beauty care reservations at the nearest location.
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The innovative company offers Shopify customers free chatbot and live-chat applications. Small retailers and healthcare businesses can easily get started with the intuitive interface. Chatbots assist retailers with their customer service and marketing needs.
Chatbots, Checkout and Beyond: How to Increase Your Use of Product Recommendations
Chatbots can make product recommendations, but there are other ways you can implement them across your website and on external channels. This will allow you to provide the personalized shopping experience your customers expect.
Product recommendations are a great way to increase traffic, conversion, and revenue.