In the ever-changing world of e-commerce, Chatbots are now the basic thing that customers expect on your website. From answering user queries to suggesting products, they have revolutionised the shopping experience. But there is more to it. Let’s learn how you can use Chatbots to boost e-commerce conversion rates and bring in more sales!
Role of Chatbot in E-commerce
Chatbots are basically computer programs designed for interactive user engagement and serve as catalysts in enhancing customer experience. Nowadays, most of them often utilise AI or predefined rules to interact in real time. You can learn more about them in our beginner’s guide on Chatbots.
A good chatbot for an e-commerce website specifically caters to online retail platforms, engaging with users to provide customer service, answer queries, recommend products, gather feedback, and offer omnichannel support across various messaging platforms.
These are tailored for online retail, use AI or rules to engage users, provide 24/7 assistance, enhance experiences, boost sales, and gather valuable customer data, proving essential for success in online retail.
They also integrate with popular messenger platforms like WhatsApp, Facebook Messenger, and others, allowing retailers to offer continuous, omnichannel support at a more cost-effective rate compared to full-time staff.
Challenges of Converting Visitors to Customers
You might be getting many visitors on your website, through paid Ads, social media or other marketing methods. Not all of them buy something, but our goal is to get as many as we can. However, if you are seeing fewer sales, there might be a few reasons that are limiting a visitor from becoming a customer.
The biggest challenges in converting a visitor to a customer on an e-commerce website are Information Overload and Trust Deficit.
As we know, the attention span of the average internet user has decreased to a few seconds in the current age of Instagram reels and TikTok. Retaining customers’ attention within a limited window is quite difficult. If your website is overloaded with so much information, the user will be overwhelmed and not know where to click. ess.
Also, establishing the trust of a new user is difficult. Customers often have concerns about security, authenticity, and service quality. Even if they add something to their cart, this is a big reason they abandon it.
Language and cultural differences can hinder online business communication if you have a global website or a multicultural customer base.
Some Key Advantages to Know
Before we move towards how to improve your conversion rate, let’s learn about some of the key advantages where chatbots perform great for e-commerce:
- Instant Answers: Chatbots are available 24×7, even during non-working hours! They offer immediate answers to user queries, greet visitors and provide assistance.
- Efficient Problem-Solving: In online transactions, customers often seek help or information. Addressing these concerns promptly and effectively can determine whether a visitor stays or navigates away in frustration. Bots excel in swiftly handling various customer issues, from technical glitches to product inquiries.
- Sales Automation: They can guide customers through the purchasing journey, offering personalized product recommendations, informing them about discounts, and easing them through the checkout process.
- Post-sale Support: These bots can extend support beyond purchases, assisting customers with order-related issues, shipping inquiries, and returns, and offering product advice. This contributes to building trust!
- Data Collection and Feedback: They can gather valuable data regarding customer queries, behaviour, sentiment, and engagement. This data serves as a foundation for understanding customer preferences.
The list is a lot longer but for now, this is enough for you to know. You can check our post on more Benefits of Chatbots for Business to go in-depth.
How to Improve E-commerce Conversion Rate with Chatbots?
The conversion rate is like a scorecard for online stores. Imagine you have a store, but instead of counting how many people just visit, you keep track of how many of those visitors actually buy something.
It’s the percentage of people who do what you want them to do; like purchasing a product, signing up for a newsletter, or subscribing to a service; compared to the total number of people who visit your store.
For instance, if 100 people visit your online shop and 5 of them end up buying something, your conversion rate is 5%. It’s a key number because it shows how effective your store is at turning visitors into customers.
A higher conversion rate means more people are buying, which is great for your business. But a lower rate might mean there’s something on your website that’s making people leave without making a purchase; maybe it’s the prices, the checkout process, or something else that needs fixing.
To calculate the conversion rate, you’d use this formula:
Conversion Rate = (Number of Conversions / Total Visitors) x 100
Remember, it’s essential to ensure that the data you’re using to calculate the conversion rate aligns within the same timeframe. If you’re analyzing a particular month, ensure that the number of visitors and conversions occurred within that specific month for accurate calculations.
The commonly cited average range for eCommerce conversion rates is 1% to 4%. However, what’s considered a “good” conversion rate varies based on industry, product types, traffic sources, and user experience. Factors like higher-priced items, different traffic sources, a user-friendly website, seasonal trends, and device preferences influence conversion rates.
Now let’s move to the main thing! Here are all the methods to increase the conversion rate for an e-commerce website with the help of Chatbots:
1) Personalised Assistance
Chatbots enhance shopping from an e-commerce website by providing interactive and personalized assistance, making it more akin to an in-store experience. They offer various interfaces like instant messaging, engaging visitors and guiding them through the shopping process.
If you are a big business where ticket size is very high, you might consider combining chatbots with live chat as well.
2) Greeting customers
Chatbots offer non-intrusive greetings and can proactively assist visitors by understanding their needs, potentially increasing conversion rates by providing tailored assistance based on their inquiries.
3) Remarketing
They complement remarketing efforts by engaging with users who have abandoned carts or previously visited the site. They encourage these users to reconsider a purchase through personalized messages or offers, aiding in recovering potentially lost sales.
4) Lead Collection
Unlike traditional static forms, chatbots engage visitors in conversation-style interactions, making lead collection more engaging and less intrusive. We always recommend a chatbot above forms. They can conversationally collect leads, simplifying the process for visitors and encouraging them to provide their information.
5) Offer Special Offers to Returning Customers
They can deliver personalized offers to returning customers, such as discounts or promotions. By enticing these customers with tailored incentives, chatbots can encourage them to complete a purchase, fostering customer retention and boosting conversions.
6) Enhance Customer Support
They efficiently handle customer queries, directing them to the appropriate resources or providing immediate assistance. This enhanced support leads to increased customer satisfaction and potentially higher conversion rates. Chatbots are good for customer service, where the customer thinks that you care about them.
If you implement some of these methods, we are sure that your conversion rate will be significantly improved.
Future of Chatbots in Online Shopping
According to a Business Insider report, global consumer retail spending through chatbots is projected to soar to $142 billion by 2024. This inevitable rise of chatbots in the future indicates their pivotal role as an essential component of every ecommerce business.
The future of chatbots in online shopping is incredibly promising, evidenced by their escalating adoption in e-commerce and other industries. Projections indicate a significant surge in retail spending via chatbots, showcasing their growing importance as indispensable tools in modern business strategies.
Moreover, fueled by AI and machine learning, their data-driven approach allows for tailored interactions, boosting conversion rates and sales. Successful use cases in various sectors underscore their effectiveness, positioning chatbots as integral to reshaping the future of online shopping with their efficiency, personalization, and seamless user experiences.
Common Mistakes to Avoid
When deploying e-commerce chatbots to boost conversion rates, several common mistakes should be avoided to ensure their effectiveness. Here are some key errors to steer clear of:
- Overcomplicating Conversations: Creating overly complex interactions might confuse users or lead to misunderstandings. Keeping the conversation flow simple ensures better user engagement and satisfaction.
- Ignoring Personalization: Failing to personalize interactions based on user preferences, past behaviour, or purchase history can result in generic responses. Personalization is key to building rapport.
- Neglecting Continuous Improvement: Not analyzing chatbot performance regularly or ignoring user feedback can hinder growth. Continuous monitoring, refining responses based on user input, and leveraging data analytics are crucial for improving the chatbot’s effectiveness over time.
- Limited Human Touch: While chatbots are automated, they shouldn’t lack a human touch entirely. Overreliance on automated responses without the option for human intervention, especially for complex queries, can frustrate customers seeking genuine human assistance. Have the option to transfer the query to a human agent.
We have written in detail about common chatbot mistakes as well, which you must know about. If you take care of these issues, you are on the right track.
Takeaways
So, all the above techniques and tips will help in using chatbots to improve the conversion rate for an e-commerce business. Their ability to provide real-time and personalized assistance can bridge attention span constraints, combat information overload, and address trust deficits.
