E-Commerce Trends: Conversational Artificial Intelligence and Smart Assistants

Matjaž Možina • feb. 27, 2023

In the digital decade of the hyper-connected individual, customers expect a seamless and personalized shopping experience. Conversational AI enables just that by using natural language processing and pre-built conversational scenarios to create more engaging and personalized interactions with customers at multiple digital touchpoints.

What exactly is conversational artificial intelligence?


In short, the term conversational AI refers to the use of artificial intelligence technologies such as natural language processing (NLP) and machine learning (ML) to enable computers to understand, interpret and respond to human language in a conversational manner.


It enables businesses to automate customer interactions and deliver personalized experiences in real time. It can be integrated into websites, messaging or chat tools, mobile applications and other digital channels to provide customers with immediate access to information, support and services in a conversational format. Conversational AI aims to provide a more human and natural customer experience, while reducing the workload of customer support services and improving their productivity.

 

The benefits of conversational AI for e-commerce


We have already written about the usefulness of conversational marketing in e-commerce (Online shopping in 2022 will be (even more) conversational) but I want to highlight the following three benefits in particular:


1. Improved user experience. With conversational AI, businesses can offer customers a faster and more convenient way to access information and shop online. Users can interact with chatbots around the clock, get immediate answers to their questions, and receive personalized product recommendations based on their browsing and shopping history.


Read how Kopija Nova harnessed the power of conversational AI by deploying a conversational bot during the high season between June and September. (Kopija Nova - Case Study)


2. Greater customer engagement. Conversational AI enables companies to build relationships with customers that transcend basic transactions. AI-powered chatbots can be used to provide ongoing support and keep customers engaged with a brand through personalized content and promotions.


GLS Slovenia is one of the companies that has integrated chatbots into its operations in order to improve support. (GLS Slovenia - Case Study)


3. Better insight into customer behaviour. Conversational AI provides businesses with valuable insights into customer behaviour and preferences that can be used to improve customer experience and optimize sales.

(A1 Slovenia - Case Study)



The usefulness of conversational AI in e-commerce


Marketers who have already used conversational AI to improve the effectiveness of their online marketing understand that it deliver exceptional value. With the increasing adoption of smart bots, which has been accelerated further by Chat GPT, customers are aware that artificial intelligence can make our lives easier and that it is above all a technology designed to be able to react and make decisions quickly in times of rapid change and development.


Marketers therefore today use the power of conversational artificial intelligence primarily to continuously improve customer service, fine tune promotional messages, create a new customer base and enhance leads conversion rates.


Customer Service: Chatbots provide 24/7 real-time customer service, answering customer questions, resolving customer issues, reducing the need for human intervention and improving the overall customer experience.


Personalized recommendations: Conversational AI can be used to enhance the shopping experience in an online store by recommending products to customers based on their browsing and shopping history, providing a more personalized shopping experience.

Gathering new leads: Chatbots make it possible to gather information about potential customers, their needs and wishes, which can then be processed by the sales consultant more thoroughly, especially when it comes to more complex transactions or the sale of products of greater value.


Sales automation with a chatbot: It is also possible to link conversational artificial intelligence directly to digital media advertisements, so that the customer is redirected from the advertisement directly to the conversational bot, where they can learn more about the offer or buy the product or service without leaving the chat interface.



Will Virtual Assistants Replace Customer Service Agents?


Virtual assistants powered by conversational artificial intelligence play a key role in e-commerce by providing customers with quick and convenient access to information and support. They are capable of performing a range of tasks such as:


  • answering frequently asked questions about products, pricing, availability, shipping and returns;
  • providing product recommendations and personalized suggestions based on past purchases and browsing history and additional questions;
  • guiding customers through the process of completing the purchase and processing payment and shipping information;
  • assist with customer service and support, including order tracking and problem resolution;
  • providing post-purchase support, such as handling returns and offering warranty information.
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By automating these tasks, virtual assistants powered by conversational AI can improve the overall shopping experience for customers and boost customer satisfaction. Their role is not to replace the agents or staff in support services. Instead, their job is to provide a tool that helps them to be more efficient in their work, which introduces work automation and increases the systematization of processes. Additionally, virtual assistants reduce the agents’ workload during times when customer demand is much higher (holidays, Black Friday, discounts, periods of special promotions, etc.) and effective support would require companies to grow their support teams.



Key trends that will transform e-commerce in 2023


I am convinced that 2023 will see a huge boom in the use of artificial intelligence and also greater user adoption. Artificial intelligence technology continues to evolve and improve and it is increasingly being adopted by companies looking to improve user experience and streamline their operations.


Customers use multiple channels (web, mobile devices, social media and messaging apps) to interact with a company or brand, so it's important to realize that the customer experience is a multi-channel one. This means businesses need to communicate with customers across all these channels cohesively to provide a consistent and seamless experience. Technology solutions such as LivePerson Conversational Cloud, which enable the centralization of multi-channel messaging, will play a key role in this process.



With multi-channel messaging, customers increasingly expect a personalized shopping experience, which means an experience that will be important to them and messages that will respond to their current needs in real time. Conversational AI helps businesses achieve this by providing personalized product recommendations and customized content 24/7.

 

Conversational AI is undoubtedly also a part of the future of e-commerce. The increasing sophistication of virtual assistants and conversational bots combined with IVR solutions and the increasing popularity of voice search suggests that conversational business will play an even bigger role in the future of e-commerce. By providing a more personalized and seamless shopping experience, this technology has the potential to transform the retail industry and bring businesses closer to their customers.

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