Director of Sales and Strategic Partnerships at ReadyCloud, the Shipping, Returns, Growth Marketing and CRM Suite built for e-commerce.
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As the world continues to embrace the digital revolution, businesses have to keep up with the changing times. One now-ubiquitous tool every e-commerce leader should consider to stay ahead of the competition in e-commerce is chatbots. As a disclosure, my company ReadyCloud is one provider of such solutions.
In this article, I will outline some strategies for leaders to take into consideration for optimal success when seeking to implement this popular and evolving AI technology in their own operations.
What are the different types of chatbots?
In a world that has become increasingly dominated by AI automation, chatbots have provided perhaps the world’s first insights into how AI can help e-commerce leaders streamline their back office.
These creative solutions are programmed to help respond to and resolve customer inquiries without requiring an immediate human touch—helping to make customer service interactions more efficient and robust. They can be categorized into two main types: rule-based and self-learning.
A rules-based chatbot is designed to answer questions based on unique commands. A machine learning chatbot, on the other hand, actually self-learns over time—and improves its response and resolution rates as a result.
What sort of customer service needs are chatbots best suited to?
The use of chatbots in business has been on the rise in recent years. Recent data culled by Research and Markets finds that the global chatbot market is expected to reach $9.4 billion by 2024. This growth is driven by an increased need for businesses to provide better customer service, automate repetitive tasks and reduce operational costs.
Many e-commerce companies now rely almost exclusively relied on providing product recommendations to process orders and answer customer inquiries. One recent study from Conversational Marketing indicated that while 8 in 10 surveyed companies reported utilizing a conversational marketing solution, 74% of companies didn't want to add one.
How do chatbots work?
Chatbots work by using AI-powered Natural Language Processing (NLP) that helps them understand, decipher and respond to customers’ inquiries. NLP technology is paired with a set of rules that chatbots use to provide responses to customer and user questions alongside real-time solutions or referrals to a live human being if the chatbot isn’t able to help.
Chatbots can be integrated with various messaging platforms, not to mention websites, online stores, social media pages and even mobile apps to provide a seamless customer experience.
How can companies use chatbots to revolutionize traditional customer service?
Companies opting to leverage chatbots are seeking distinct benefits when it comes to turning customer service into a hybrid operation. Because of the 24/7 availability of chatbots, they can help users no matter the hour. They also are capable of handling multiple requests from multiple users simultaneously.
Leaders must understand, of course, that there are limitations as to what a chatbot can and cannot do. For example, chatbots can only respond to queries that are within their programming or machine learning model. Most will struggle with complex inquiries or situations that typically require human oversight.
In reality, chatbots are best suited for handling the sort of simple and repetitive inquiries which are common in e-commerce and travel, such as the chatbots consumers interact with when booking reservations.
What's the future for chatbots in e-commerce?
The future of e-commerce definitely holds a spot for chatbots, even as it is an evolving technology. When considering a chatbot solution, leaders should look for the strategic uses that align best with their operations.
I hope this article provides some valuable takeaways for leaders considering whether to leverage this revolutionary tool. As this technology continues to grow and refine, you can bet AI will take center stage in e-commerce well into the future.
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