Customer Relationship: Why E-commerce business should not hesitate to adopt AI Chatbot in the near future
The advanced development of technology in artificial intelligence and natural language processing technology has driven the success of chatbot adoption in several industrial sectors. Even there are in some industries, business leaders are still not thoroughly convinced of the advantages of chatbot, the successful patterns of utilizing chatbot are still can be identified, as such: reducing the burden of carrying out repetitive tasks, providing more live chat with your potential customers, quickly directing your customers to the destination to offer information they are asking for.
AI Chatbot is a computer-generated technology that can be programmed to self-run and respond to a text or a command of a customer. Rapid progress in natural language processing has made way for the widespread presence of simple text, messaging applications, which makes it less difficult for humans to keep in touch and receive the information at once.
Chatbots are increasingly on high demands in rapidly moving e-commerce businesses. It is predicted that by 2020, 80 % of business will use chatbots and an average person would have even more conversations with the machine a day than they do with their peers. This rise represents a good example of how much AI has served to build a stronger customer relationship, strengthen the app ecosystem (messaging apps, social media apps…). The explosion of cognitive technologies, conversational user interfaces, and automation technologies will open a new era of automated conversation between humans and technology, which will reduce the time and human resource spent on dealing with answering repeated questions. Empowering online business to promptly reply to customers’ question to giving a customer relevant information or products that they are currently searching for, a chatbot will bring even more benefits to your online customers.
E-commerce businesses who are placing a great emphasis on low-cost strategy should consider adopting AI chatbot, for one most important reason: strengthening the relationship with customers and saving labor cost to allow the reallocation of human resources into more important departments. Chatbot can improve the customer service through its intelligence by its constant learning capacity and fulfilling itself through various advanced database and machine-learning algorithms.
According to the finding of Harvard Business Review, “Most of AI’s business uses will be in two areas”, nearly 40% of all potential value, which are created by analytics can be generated by AI machine, lies within the sphere of deep learning. As what can be understood from the expert’s finding, deep learning-based systems make sense of data for themselves, learn from their experience. In the early stage of adoption, chatbot can be helpful in learning sets of frequently asked questions to give the correct answers at any time. In the long run, extended with the power of mastering the natural language and deep learning, chatbot can even be trusted to carry out customer analytics to provide meaningful implications for improving business quality. In the absence of professional data experts, AI chatbot can provide business forecast based on causal drivers of demand, enhancing accuracy by 10-20%. Business leaders will be given more resources to redirect managerial focus towards other departments that require more human creativity, critical thinking.
A highly intelligent chatbots are ones equipped with human-like conversation skills, able to reply with normal texts; nevertheless, can grasp the context of conversation. The merit of adopting such a bot apparently will increase interaction with your online customer and the likelihood to collect rich customer data. Furthermore, chatbot technology can be upgraded into a story-sharing platform, where customers can read, listen to a company’s stories, achievement and more. Further, an intelligent bot can also undertake the responsibility of an expert in a field to give some relevant recommendations about the usage of a business’s product.
Consider Nike StyleBot, when Nike teamed up with Snaps to promote Nike AirMax Day, this chatbot was able to help the company to increase customer engagement in their past campaign. AI e-commerce chatbot enabled customers to design their closet after uploading their pictures of accessories. More importantly, magnified by the effect of electronic WOM (word-of-mouth), online users can, after having designed for themselves a good concept of clothing, share the mix-and-match designs with friends, peers in their community.
When it comes to the millennial, such common shopping attributes of the new generation are impatience, connectivity, and information-driven shopping, rational decision-making. Millennials simply want their inquiries to be quickly delivered to the company, processed and replied; so that they can compare with other platforms’ products and services and to largely contribute to their purchasing decisions. Instant feedback to customers of chatbot technology will bring a great advantage to the websites and customer satisfaction in an early stage of browsing product-related information. Research has shown that using chatbots will reduce chances of postponing purchasing products in shopping carts of the millennials.
This indicates that while being rational in selecting products and purchasing decision, millennials are critical in examining information that is given to them by companies and brands with evaluation of response time. More importantly, if the provided information is sufficiently understood, it took less time for them to purchase. Through the act of integrating chatbot with Facebook messenger, business can provide greater access to supporting customers, especially the millennials. Real-time customer support will drive business reputation, reducing the burden placed on marketing managers.
While there are still suspicions, we have found strong evidence to illustrate the merits of a chatbot in e-commerce, if continuously improved to craft potential values for customer analytical techniques, providing additional insights and implying applications. Attaining massive database that is sufficiently great enough and applicable to various segments in businesses is now considered a challenge for both managers and AI experts, so too for customers to understand how companies can better help them to have better choices with chatbot. Although in the short run we still can see some limitations to implementing one, the potentials to bootstrapping business growth are promising in the long term.
Embedding AI technology across will require significant investment in talents and technology as well as adapting to new changes into corporate cultures calls for a careful examination, that is to what extent AI chatbot can align with business strategy and serve to enhance customer relationship. Consider a way to scale up your business, integrating a highly intelligent chatbot will undoubtedly pay off in the long-run.