Retail needs updating. The question is: what can help?
Studies show that about 50 percent of retail customers are not satisfied. The problem is retailers are talking to customers, not with them. Before it was the product that brought customers to retailers. Now, customer engagement drives the industry, and in an increasingly digital marketplace, the essence of engagement lies in personalization. In today’s world, retailers should work on getting the attention and trust of customers. Retail needs updating. The question is: what can help?
How Can Bots Help Solve The Problem?
The bot is a computer program that converses in natural language using data and intelligence from legacy data, performs automated tasks and can take actions on those tasks. Instead of navigating a graphic interface on a mobile app or a website, a customer now gets a virtual assistant that can talk to them, ask them questions, guide purchases, and bring a familiar user experience (texting/talking) to virtually any communication.
Chatbots can perform tasks, serve customers and deliver alerts. They can also use artificial intelligence to anticipate customers needs, what is very important to retailers. With the help of chatbots, retailers can entice and enhance the customer shopping experience. Bots present a quick-to-develop, easy-to-use, extensible solution.
Conversational Commerce is a new term to describe the act of placing orders through online conversations. It is the future of digital shopping, we suppose. Furthermore, retailers and brands will be able to connect with consumers in a personal way through messaging apps and chatbots.
In addition, chatbots will read messages, look at purchasing behavior and browsing history, and offer consumers curated products accordingly. It brings a whole new level of targeting capabilities to an already targeted digital space. And it will be very comfortable.
Now we can see the explosion of messaging apps, including Snapchat, Kore, and Facebook Messenger, major brands are experimenting with chatbots as a way to interact with customers in a more natural way, build a loyal following, and drive sales. So why would you as a retailer bring bots into the fold?
Why should bots be a part of Retail Strategy?
There are several reasons.
- First of all, bots can always be with your customers. Bots can be placed where your customers already are (on Facebook Messenger, your mobile app, your website, email, SMS and so on). Now all of a sudden your brands can go anywhere and work for you 24/7. No more hit-or-miss targeting.
- Studies show texting is much more effective than email marketing or social media. Customers have chosen to text as their preferred way to communicate. So bots it`s the best way to communicate with your clients!
- Engaged customers spend more. According to a 2014 Rosetta Consulting study, engagement customers are 90 percent more likely to make frequent purchases, spend 300 percent more annually than disengaged customers, are seven times more likely to respond to promotional offers, and are six times more likely to try a new product.
- Fast response. The modern customer demands quick responses, and social media isn’t cutting it. According to a 2015 Northridge Group study, one-third of consumers who contact brands via social media never get a response. With bots, that never happens. Chatbots will answer you instantly no matter what time it is.
- The retailers can get a quick response to questions about the quality of service like “How was your experience?” “What are the benefits and drawbacks?” and work on their improvement.