How Chatbots Bring New Revenue Streams for E-commerce Brands
The age of artificial intelligence is upon us. In fact, it is expected that global revenue from artificial intelligence will grow from $643.7 million in 2016 to $36.8 billion by 2025. A big portion of this revenue will be thanks to retail.
Thanks in large part to chatbots for retail, the average shopper is experiencing AI as e-commerce brands are leading the charge of using this technology. With over 3 billion active users on messaging platforms worldwide, brands are taking advantage of these platforms to build e-commerce chatbots as a new way for them to reach their audience and increase their profits.
Shopping chatbots are great at targeting the right audience and are being used as tools to drive sales. They are helping consumers find new products, timely deals, related products and makes the purchasing process more seamless.
Here’s how a few brands are already increasing their revenue with the best e-commerce chatbots:
Snaps has seen on average a 12x increase in clicks-to-purchase with our clients using chatbots for retail. So, we employed this technology when working with Nike’s Stylebot.
The e-commerce chatbot shared new styles with users and drove a CTR 12.5x higher than the brand average. Additionally, we helped the company achieve 4x higher conversions with a boy promoting Nike AirMax Day.
Sephora used chatbot technology to create a Reservation Assistant via Facebook Messenger.
Originally, the customer journey to make a reservation included five separate steps. Now, with the retail assistant chatbot, they’ve eliminated the amount of steps and experienced an increase in makeover reservations by 11%.
A survey from 2015 concluded that text is the most socially useful form of communication technology. Now, businesses are recognizing this preference and integrating text-based communications into their marketing and customer service strategies.
The flower delivery company built an e-commerce chatbot that allows customers to order flower arrangements right within Facebook Messenger. It allows customers to choose bouquets, enter delivery information and instructions, write what they would want the card to say, and more. Within only a few months of launching the shopping chatbot, more than 70% of their Messenger orders were from new customers.
Since using an e-commerce bot on Facebook Messenger, SnapTravel has seen $1 million in hotel bookings in less than a year. Users can go right into the app and discover the right type of hotel they are looking for. People send the retail assistant chatbot their destination, travel dates, and budget. The bot then responds with a number of options.
There is a wealth of opportunity for brands to expand their reach and their market. Thanks to the ease and accessibility of chatbots for retail, customers are now more receptive to new sales tactics than ever.