A chatbot can help to transform retail sales at this pandemic time
As the world continues to navigate uncertainty related to the COVID-19, retailers are faced with many tough decisions.
According to Wikipedia, chatbot is a software application used to conduct an on-line chat conversation via text or text-to-speech, in lieu of providing direct contact with a live human agent. The hype of automation, machine learning, and artificial intelligence, and strive to efficiency, no wonder chatbot become so popular. The global chatbot market is expected to reach USD 1.25 billion by 2025, growing at a Compound annual growth rate (CAGR) of 24.3%.
Are people ready to buy via a chatbot? According to Facebook IQ Source Millenials are 2.06X more likely to say they’d like a personal shopper chatbot.
Furthermore, a survey of 8,156 people shows that over 59% expect to use messaging more to make purchases. In another recent study, 47% of buyers are open to buying items from a bot. Chatbots for marketing are becoming an astonishingly powerful marketing tool for businesses to improve customer engagement and driving sales.
As the retail industry undergoes a huge shift because of the coronavirus pandemic, the future of the global retail economy is jeopardized. Almost overnight, physical stores were closed, most retailers have filed for bankruptcy, and others in a prominent risk. Meantime, a growing number of customers want to shop online and get their purchases through pickup or home delivery. Safer shopping has become a global campaign for businesses and buyers. Based on GlobalWebIndex research, surveyed 15,271 people around the world and 50% expect to shop online more frequently after the outbreak is over.
These fast-changing dynamics have led to the blitzkrieg of digital transformation. While big retailer had established their online sales channel, others remain on hold. Since the onset of this pandemic, customers are much more interested in safe purchase.
Develop a new sales channel is not risk-free, there are many things to consider. Creating an e-commerce site from the ground up is not a cheap investment. The cost might contain website development, establish sales support, digital marketing and etc. Developing their own mobile apps for generating sales is also not cheap, according to research, develop a mobile app can cost around $10,000. Most of the solution usually requires a human resource establishment which considers being a high stakes investment.
The advantage of using a chatbot to drive sales are:
- Quick response — Chatbot is ideal for a fast reply to the customer. Fast is one of the key factors to eliminate the unnecessary steps in the customer purchase path.
- Relatively Cheap — Compared to other channels, a chatbot is relatively cheap and almost maintenance-free. It doesn't require much investment when comes to scaling the operation due to the sales volume.
- Highly available & Reliable — The sales process with chatbot become simple for the customer since it can be deployed on social media or instant messenger of their choice. A chatbot can also Improve 24/7 engagement.
- In-Person Experience — Giving a personalization sales experience in the sales process is a holy-grail for companies for years. Via chatbot, the experience for each customer can be like talking to a friend.
Chatbot implementation strategies
The strategies of implementing a chatbot in the retail industry
- Outreach potential customer with broadcast
- Create simple, enticing sales flow
- Notify with only the for what matter most
- Recommendation and personalization
- Transform the loyalty strategy
- Analyze, analyze then action
Chatbot scenario examples by distribution channels
1. Supermarket, convenience store, and groceries
Driving sales for this kind of type can be done by creating an e-commerce chatbot. It is understandable that the chat format is more compact when displaying the product, therefore a product recommendation and personalization are crucial. By delivering the most relevant product recommendation can significantly increase sales to the targeted customers.
Key points:
- Deliver relevant product listing
- Optimize the order flow
- Give a tracking and order status
- Create a simple loyalty program
2. Specialty stores
Specialty stores are retail businesses that focus on specific product categories, such as office supplies, electronics, fashion, or pharmaceuticals. Most specialties stores now are open in brick-and-mortar forms which very inefficient. Creating a buy option in a chatbot for a specialty store can leverage the customer experience and eventually drive sales.
Key points:
- Give detailed product information
- Leverage the chatbot skill to solve the repetitive tasks
- Friendly conversation dialogue design
- Shipping options
3. Shopping mall
Shopping malls are a popular place for most consumers to spend on goods and services. Many malls had created varied channels to interact with their customers like websites and apps. As previously stated, build and maintain a website and app does not come cheap. With human-like interaction can entice a customer to communicate better.
Key points:
- Create location-based response feature
- Publish in-chat holiday shopping season campaign
- Deliver FAQ covering safety initiative program
- News update and promotion on merchants
Conclusions
When the market is ready and the technology is available, the next first thing to do is determine the purpose of the chatbot and the task you want to overcome. Identify the existing sales funnel then create the best chatbot scenario that represents the goal you want to achieve. It’s understandable that the chatbot is fast, reliable, and accurate, therefore using a chatbot can effectively shorten the path of purchase and greater chance to sell more.
