eCommerce Chatbots: Definition, Types, Advantages, and Examples

eCommerce is taking the world by storm as more enterprises shift towards online platforms and marketplaces. In today's ever-evolving business landscape, it's more important than ever for merchants to find new and better ways to improve their services and stay ahead of the competition.

Ralf Ellspermann, the CEO of Piton Global, a leading BPO company in the Philippines, reports that 68% of consumers are willing to pay more for an exceptional experience. At the same time, 27% claim that the lack thereof is a primary frustration, making customer service a critical area for businesses to improve.

Fortunately, technological advancements are improving business operations, such as chatbots that offer automated customer service and enhance the shopping experience. In this infographic, let's explore everything about eCommerce chatbots and how they revolutionize the customer service industry.

What are Chatbots in eCommerce?

Chatbots are programs simulating conversations, allowing humans to interact with computers as if communicating with real people. Organizations typically integrate them into their customer service operations to interact with customers around the clock and deliver quick response times.

Chatbots come in various types, from rudimentary question-and-answer systems to advanced artificial intelligence (AI)-driven models that learn from existing data to generate tailored responses. 

With the latter, you can deliver human-like responses to unlimited customers. It's so good that some people might not even realize they're already talking to a bot!

Types of Chatbots for eCommerce

There are several chatbot types, each with unique capabilities depending on your goals. Let's discuss some of them to determine which meets your needs.

1. Rule-based chatbots

Using if/then logic, rule-based chatbots are ideal for companies that can predict customer inquiries and formulate specific responses to preset prompts. Meta's Messenger platform offers chatbots for eCommerce businesses to automate assistance, such as clothing size and location queries.

2. AI-powered chatbots

Advanced chatbots leverage natural language processing (NLP), an AI branch that analyzes context and intent. It enables the chatbot to understand linguistic data, recognize contexts, and facilitate decision-making. For instance, EACOMM Corporation, a Philippine IT solutions provider, employs an NLP-powered chatbot on its website to answer visitor inquiries in a human-like manner.

3. Hybrid chatbots

Some chatbots combine live and AI-driven conversations to provide more elevated customer services. NLP is responsible for initially dealing with customer inquiries, while an agent takes over when a query requires input from someone who understands complex human problems.

Advantages of eCommerce Chatbots

More and more businesses are realizing the benefits of incorporating chatbots into their operations, and it's not hard to see why. Let's discuss the benefits to expect from utilizing this technology.

1. Increases customer engagement

Chatbots significantly reduce response times to provide a more engaging experience for customers. Less human input leads to fewer errors and more accurate, data-driven solutions for customer queries.

2. Provides 24/7 support

Chatbots are available 24/7, making them an ideal supplement for human agents, as they don’t require downtime, rest days, or holidays. They can provide support anytime, especially for basic inquiries and conversations, improving customer satisfaction even when the team is away.

3. Boosts efficiency

Chatbots are integrable with customer relationship management (CRM) software, which enhances them with valuable customer data. For example, they could remember past interactions with a buyer to contextualize conversations and automatically provide more accurate and personalized responses.

4. Enables personalization

As mentioned, chatbots can connect with CRM software to leverage customer demographics and behavior. Use this data to inform human agents about a customer, enabling them to provide more personalized service during their chat.

Moreover, chatbots can gather data to support personalization and engagement strategies like a customer loyalty platform.

5. Reduced costs

It's tough and expensive to have an employee available around the clock. You need to train a team and maintain their payroll. However, chatbots solve the problem by providing 24/7 availability to handle multiple customers simultaneously with minimal issues. It reduces the need for staff expansion and helps you save costs.

6. Improves revenue

Chatbots can help businesses save money in the long run as they’re more cost-effective than hiring human agents. According to Accenture, 57% of company executives agree that chatbots deliver significant ROI with minimal effort. You can use Rush's return on investment calculator to estimate how much you can save in this regard.

Examples of eCommerce Chatbots

Are you wondering how this technology works in real life? Let's talk about the popular eCommerce chatbot examples in the Philippines.

1. Shopee Assistant

Pixie, Shopee Philippines' chatbot, can assist shoppers with various concerns, including logistics, payment, and returns. It can also track orders and update account details for a smoother user experience. A live agent can assist if the chatbot can’t address the customer's needs.

2. Lazada IM Shop Assistant (LISA)

LISA is a chatbot that sellers can integrate into their Lazada stores to enhance the customer experience. It can assist with order tracking, product availability, and ordering inquiries 24/7, even when sellers are offline. LISA has a pre-programmed knowledge base but allows customization of responses to align with your brand voice. Merchants can also specify when a live agent should take over the conversation.

3. Globe Telecom

Gie, the virtual assistant/chatbot from Globe Telecom, is now available to users who contact the company through Meta's Messenger. It’s a rule-based system that covers various topics, including SIM registrations, complaints, account management, purchases, and security concerns. A live agent will enter the chat for more complex inquiries beyond Gie's scope.

4. BPI Express Assist (BEA)

With BEA, customers can easily go through the step-by-step process of opening a deposit account online. It can also provide information about BPI’s products, set branch appointments, and other account-related concerns, reducing the need to contact a live agent.

5. Zalora

Zalora integrates hybrid technology to communicate with shoppers on its site. It accommodates various conversation topics, such as order tracking, refunds, cancellations, and payments. However, if users ask something outside of scope, the chatbot lists preset prompts or redirects them to Zalora's support team.

Best Practices for eCommerce Chatbots

Understanding how to utilize chatbots is essential to running them successfully and maximizing their benefits. Let's discuss some best practices to observe when working with this tech.

1. Ensure clear and concise answers

To meet customer expectations for quick and accurate responses, ensure your chatbot delivers concise answers without incomprehensible jargon. You can use NLP-enabled chatbots to determine the ideal language for specific customer segments. For more complex responses, consider directing customers to your blog page or human agents who can provide clearer explanations.

2. Provide personalized responses

McKinsey & Co. reports that 71% of consumers expect personalized interactions from companies, emphasizing the importance of tailored customer service. Addressing buyers by name can create a personal connection between the customer and the chatbot, especially if the user has an existing account.

3. Adjust the tone of voice

The communication style of your chatbot should reflect your brand's personality and resonate with your target audience. It should use conversational language that's easy to understand, whether you opt for a professional, playful, or friendly tone. 

You can also inject humor into your chatbot's responses to lighten up the conversation and create a more memorable experience for your customers, as long as it fits your brand identity.

4. Integrate with customer channels

Utilize customer data to determine the channels with users that are more likely to use chatbots If your target market uses Messenger, consider establishing a chatbot presence to engage with your audience. According to Statista, 98% of the Philippines' population uses Messenger for communication.

5. Consider your global audiences

Using NLP can help you engage with customers who speak different languages in other parts of the world, allowing you to aid international shoppers. 

Towards Data Science reveals that most NLP models support English, Chinese, Urdu, Farsi, Arabic, French, and Spanish, with some chatbots capable of handling more languages. This information can guide you in determining the markets that require more support.

6. Don't expect solutions to every query

Remember that chatbots have their limits despite their effectiveness in handling customer queries. Sometimes, the chatbot may not have all the answers customers seek. That's why it's important to have a backup plan in place. The simplest solution is to give customers the option to connect with live agents for particularly complex concerns, increasing the likelihood of resolving their problems.

Build Customer Relationships with Chatbots

eCommerce chatbots improve customer support and increase revenue by providing personalized and efficient services that enhance customer satisfaction, foster a positive experience, and build lasting relationships with new and existing buyers. 

However, finding an effective eCommerce solutions provider in the Philippines may take time, especially with the growing competition. Fortunately, Rush has your back. We can help you build an online webstore and launch various campaigns, such as a white-label loyalty platform, to boost your customer support and engagement.

Check out our eCommerce packages to begin your customer service journey, or contact us for more information!