AI & innovation December 11, 2020

The rise of chatbots in e-commerce!

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The rise of chatbots in e-commerce!

According to Matthieu Tranvan’s blog, conversational commerce is gaining significant traction in our society, largely thanks to the rise of chatbots. But what exactly is a chatbot? It’s a digital interface designed primarily to communicate, whether through written messages, voice, or phone calls. There are three types of bots, all considered innovative:

  • The “chatbot”: A bot that interacts with users via text.
  • The “voicebot”: A bot that communicates through voice.
  • The “callbot”: A bot that engages with users over the phone.

To start a conversation with one of these bots, you simply type a message in an online chat, ask a question aloud (for example, on an iPhone: “Hey Siri, what’s the weather today?”), or call. Chatbots can handle a wide range of consumer requests A bot can provide verbal responses or even interact with third-party applications. Take Google Assistant and the Google Home, for instance: “Okay Google. Play the latest Imagine Dragons track.” The voice assistant will use one of your apps (Deezer, Spotify, Apple Music, etc.) to fulfill the request.

There are two main types of conversational agents:

  • A script-based conversational agent with multiple-choice options: This allows businesses to control everything the chatbot says, eliminating the risk of inappropriate responses. It works similarly to an automated phone call (e.g., “Are you calling to change your internet plan? Yes or No?”).
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  • A conversational agent powered by artificial intelligence: To respond, the bot attempts to understand the intent behind your message. That’s why training it in human language is crucial. It may not fully grasp your question and might ask for additional details to refine its search.

A chatbot must meet consumer needs For a chatbot to deliver real value, it should have three key qualities:

  • Usefulness: It must answer customer questions effectively.
  • Conversation: The interaction should feel natural and human-like, even accounting for spelling mistakes.
  • Ease of use: It should be easily accessible, no downloads or unnecessary information requests.
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Beyond these qualities, a chatbot should also drive users toward a final action, as shown in the example below: A real economic benefit for businesses adopting chatbots According to JDN and Juniper Research, chatbots will save businesses $11.5 billion globally by 2023. The fact is, 80% of customer questions are repetitive. That’s why chatbots are ideal for:

  • Handling repetitive queries
  • Delivering lightning-fast response times
  • Reducing pressure on customer service teams
  • Avoiding human errors (e.g., frustration, politeness issues)

This means companies won’t need to scale up their community managers or customer service agents. However, human contact shouldn’t be overlooked. Chatbots are there to complement other communication channels. If a bot can’t answer a customer’s question, it hands off to a human agent. Thanks to chatbots, teleoperators can focus on higher-value tasks and save precious time in their work.

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