Online shopping in 2022 will be (even more) conversational
The growth of online shopping is obvious, and most importantly, people are shopping more frequently. Though the younger generation was once thought to be natives of online shopping, in the last two years the elderly have also discovered its benefits. In the new normal, Baby Boomers in particular have become more active online and use digital media more often. All this is accelerating the development of what is known as online shopping 3.0., which is highly personalized, identifies customers’ needs and shopping intentions and is increasingly conversational.
A customer's online shopping experience determines the retailer they choose
With the rise of online shopping, the experience on digital channels has become even more important. In a marketplace where the prices are increasingly becoming converged, user experience drives above-average satisfaction, an important factor that influences customer satisfaction and repurchase.
Last year’s most successful online retailers and brands were those that made purchasing from them easier and simpler and communicated with their customers in an accessible, almost friendly tone. In the United States, online shopping has grown by more than 20 percent in the last year, while in Slovenia, while the Shoppers' Mind survey (2021) for Slovenia has revealed that the share of customers who shop online frequently or regularly has increased by 8 percent over the past two years. Likewise, an analysis by the Statistical Office of the Republic of Slovenia (SORS, 2021) found that in 2021 more than two thirds of Slovene made at least one online purchase.
It is obvious that the growth of online shopping was fuelled by the pandemic. However, the growth in online shopping has also been accelerated by customized shopping experiences, which was enabled by a better understanding of consumer needs, personalization of the shopping experience and communication through messaging tools.
According to the data shared by technology company LivePerson, as much as 50 percent of all interactions in online stores will be handled by bots by the end of 2024. In practice, this means that chats bots will process sales worth US$ 142 billion by 2024. This is a number that is no longer negligible.
Retail is undergoing a massive digital transformation
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Over 50% of retail interactions will be successfully handled by bots (Juniper Research)
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Chatbots will facilitate $142B of consumer spending with retailers by 2024 (Juniper Research)
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40% of shoopers do not care if humans or AI help them, as long as their questions are answered (HubSpot)
Conversational artificial intelligence is fuelling online shopping experience 3.0.
Conversational artificial intelligence allows online shoppers and brands to interact more easily and quickly by using chatbots and voice interfaces (VI).
In a recent survey conducted by LivePerson at the end of 2021, 77 percent of respondents said that they are more likely to complete a purchase if they could get answers about products via messages or chat. This presents brands with an opportunity to encourage purchases by offering customers a chance to communicate via chat tools.
Understanding key customer needs and responding to them in real time has become crucial in uncertain times. That's why LivePerson puts consumer intent at the centre of communication. Conversational commerce based on conversation AI provides consumers with quick and easy access to key information about the products and services they are looking for, while providing retailers with an opportunity for remote and active communication. This may partially replace personal interaction with a human sales agent, boost sales and improving the brand experience.
Conversational AI drives significant value
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Up to 10x increase in online sales conversion rate
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75% higher average order values
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Reduce labor cost per interaction by 50%
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Automation generates 2x improvement in lead capture
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2.5x higher digital ad click through rates
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90%+ automation rates on key intents
Conversational marketing has been more widely adopted by the largest online retailers. Using conversational technology and AI, they are combining the best online and offline experiences to create above-average shopping experiences that will be a key factor in future success. I believe this will determine the winners in the marketplace in 2022.
