Boosting Customer Experience using AI Chatbots in Retail

Digital revolution has taken the world by storm in the past few years. This has resulted in a transformation in the ways in which customers interact with various businesses. Since the chatbots are sophisticated and can act exactly like humans in a majority of aspects, the relationship between the customers and businesses have enhanced.

This information can prove to be extremely beneficial for retailers who engage with customers from different walks of life in-store or online. In today’s world, all customers want access to their products without their location creating any hassles. No matter what device they use, they want their connection to be flawless.

According to Gartner, after 2020, more than 95% of customer-business communications will be based on chatbot stimulation. Chatbots are estimated to be the top AI application over the upcoming 5 years.

The quality that separates a business from a crowd is the ability to provide exceptional customer engagement. 87% of customers agree with the fact that they opt for certain services based on customer engagement. All businesses strive to enhance their customer experience. In such cases, the real game changer is conversational AI. The technology of natural language processing (NLP) is a powerful tool that has the potential to transform customer interaction and change the way businesses deal with customers. GUI-based interactions and IVR can seem too robotic and can put off customers. Conversational chatbots give a personalized touch and can hence aid in increasing the customer base of a brand.


Bots Impart a Personalized Approach To Online Shopping

Nowadays, it is hard to come across a person who doesn’t shop online. After all, in the corporate era, not everyone has the time to rummage through stuff in local stores when they can easily shop digitally. But at the same time, these customers want a quick address of any concerns if they arise. Thus, in order to drive more customers, businesses have to take prompt action in this regard.

This is when chatbots emerge to play a significant role. They track user behavior and provide information that is relevant in every way. Moreover, apart from providing the users exactly what they want, bots can also successfully anticipate what would be beneficial for the customer and provide the same with utmost efficiency.

Bots are helpful in providing customer support throughout the day without any break and are effective in tracking deliveries and other interactions. This results in the successful humanization of the shopping experience for the user.


Application of Chatbots in Retail

Let us dive into the details of how chatbots are increasingly helping brands to enhance customer engagement.


1. Provide aid even before asking

Bots facilitate automation of tasks that are usually performed by humans and ensure a smooth customer experience. From allowing the customer to browse more effectively to giving smart product recommendations, bots help customers to make the best choice of products that suit them well.


2. Enhance the customer’s shopping experience

Not only do bots help customers shop more judiciously, but also provide additional benefits for enhancing their overall shopping experience. For instance, apart from creating a well-organized grocery list, the bot can also provide featured recipes and the ingredients required to prepare them.


3. Improved loyalty, more satisfaction

There are many surprising advantages that bots can provide to impress the customer. Some of those activities include marking important dates such as birthdays and anniversaries and providing relevant information based on past purchases.


4. Simplified buying experience, staying supreme

Bots simplify the buying experience for users to a great experience. For example, if you are on the lookout for the perfect wedding dress and you also have a location preference, a bot provides a list of different styles and also conveys where you can find what you want. You can also select a stylist and book an appointment with the help of an automated text message from the bot.


5. Correct place, perfect timing!

The best thing about bots is that they learn the behavior of the customer based on past purchases, location and browsing history. Suppose if a user is present at a certain location, the bot will send a notification about a nearby shopping store.


6. Invitation of shoppers upon arrival

When a shopper is at a location, the bot asks whether she wishes to shop and recommends a store on the basis of the location. Based on the shopper’s preferences the store is recommended.


7. Makes in-store purchases as easy as online shopping

As soon as the shopper searches for an associate, not only the bot locates one, but also sends assistance as soon as possible. With the rise of online chatbots, shopping is now a child’s play.

With a significant rise in the number of messaging apps, global retail brands on a large scale are striving to bridge the gap between online shopping and people who still prefer to visit offline retail stores. Let’s take a look at how some global retail brands are taking advantage of conversational bots.


1. Burberry

Launched in 2016 in the London Fashion Week, the Burberry chatbot offered the users with a puzzle which upon solving, the users could browse through gifs and pictures and access the latest trendy collection.

2. Tommy Hilfiger

In 2016, when Tommy and his team partnered with supermodel Gigi Hadid, they launched their chatbot. As a result, their site traffic increased and so is their overall sales.


3. H&M

For most buyers looking for a plethora of styles, H&M is the one-stop destination. But sometimes, sifting through their entire collection might seem challenging to customers. Thus, in order to ease their troubles, H&M launched a chatbot in their marketing strategy to make retail easier. Moreover, the customers now have a system that aids them in making better shopping decisions.


4. Levi’s

Levis Virtual stylist is a result of a partnership between the brand and a retail chatbot platform. Now the users don’t have to waste hours browsing online or trying on numerous clothes to find their perfect fit, thanks to the bot that helps the customers find their perfect fit without any hassles.

About Anirban Guha 6 Articles
Anirban Guha is a seasoned Inbound Marketing & Communications professional currently working with, a enterprise-grade chatbot platform. He is a keen observer of latest technology trends and loves to write about them.

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