Jan 18, 2022
Conversational AI has become the future of customer engagement. Juniper Research predicts eCommerce transactions via chatbots will reach $112 billion by 2023. This number is only going to grow as customers get more and more used to conversing with chatbots and virtual assistants. The least the Arithmix conversational AI does is to converse with a clear goal to convert, which is vastly referred to as the “chatbot”. The “chatbot” component enables customer engagement on chat, voice, and text channels to be conversational in ways that improve customer experience and conversions. The chatbot is available for service 24*7, in any language your customers speak.
However, the Arithmix conversational AI is much bigger than just the chatbot you see. The conversational AI does a lot to
- learn about customers,
- support your staff,
- find hidden opportunities and
- build knowledge about the business and customers over time.
It helps solve customer problems at every stage of the customer lifecycle, from conversion to retention. This blog post will explore how conversational AI can improve e-commerce platforms from the perspective of customer journey and lifecycle. Also, we’ll see how conversational AI can benefit different departments like sales, support and marketing to make better decisions in order to grow your e-commerce business.
When Arithmix planned to deliver a solution to e-commerce platforms our main focus was on increasing the customer lifetime value and reducing the customer acquisition cost to help e-commerce businesses to increase profits.
Increase Customer Lifetime Value
Conversational AI can help increase customer lifetime value (CLV). According to a study by Oracle, conversational AI can help increase CLV by up to 20%.
Arithmix conversational AI focuses on
- Increase Customer Acquisition Rate
- Increase Customer Conversion Rate
- Increase Customer Retention Rate
- Increase Sales Revenue
- Decrease Cart abandonment and checkout abandonment
Following are a few of the many steps Arithmix conversational AI has taken to do the above
- Customer experience all throughout their journey through multiple touchpoints
- 24*7 Service availability
- Multilingual conversations
- Natural conversations
- Real-Time responses
- Proactive conversations
- User-friendly recommendations
- Personalized customer service
Increase Customer acquisition rate
Conversational AI has introduced a new marketing paradigm: Conversational Marketing which is discussed below. With Arithmix conversational AI, you can be present on any platform where your customers are. This way your digital assistant will be able to proactively engage with your customers and persuade them to visit your website to explore more.
Also, a digital assistant who knows from where your customers were directed to the website, will be able to start conversations proactively with customers helping them to resolve the problems they have before deciding to buy from your e-commerce store. This is a very important step, to win credibility for your e-commerce business without letting your customers go and search about your service on google.
Conventional marketing can go hand in hand with conversational AI and improve efficiency by more than 60%. Stay in touch with us to find out more about using conversational AI to increase customer acquisition.
Increase Conversion Rate
Conversational AI can help increase customer conversion rates. According to a study by Drift, businesses that use conversational AI see an average lift in their conversion rate of over 50%. This is because conversational AI makes it easy for customers to get information and complete transactions. In a conversational interface, customers can ask questions and get answers in natural language in real-time. The chatbot works 24*7, in any language your customer speaks. They don’t have to navigate through menus or click on buttons. This makes it easy for them to find what they are looking for and complete transactions quickly, which increases the conversion rate.
Increase Retention Rate
Conversational AI can help increase customer retention rates. According to a study by Bain, conversational AI can help increase customer retention by up to 50%. This is because conversational AI makes it easy for customers to ask questions and get answers in natural language. When a customer gets an answer that they are looking for quickly in the conversational interface, he/she will be pleasantly surprised. Because the conversational AI learns about the business scenario, customer emotions, customer trends, buying patterns and customer interests the conversation looks natural. Moreover, because conversational AI learns about the customer at a personal level, the conversation will be personalized to that customer. Because of this, your customers feel more connected with the brand which increases the chances of them returning in the future.
Increase Sales Revenue
Arithmix conversational AI focuses on
- Increasing cross-selling and up-selling
- Decreasing cart and checkout abandonment
To increase sales revenue.
Arithmix Conversational AI can help increase sales revenue by a minimum of 30% through conversational commerce (also known as conversational selling). This is because conversational AI can automate many tasks that are currently done by human sales representatives. It can answer common questions, resolve customer problems and even recommend solutions. Your Arithmix digital assistant will suggest to customers about the new products to complement their previous trades and interests.
Cart abandonment is a costly problem for businesses because they lose up to 60% of their potential revenue from abandoned shopping carts. Customers get interrupted during checkout for a number of reasons: incoming calls, family needs, or simply losing interest.
Your digital assistant powered by Arithmix Conversational AI can lower Cart Abandonment as follows
Cart abandonment is when people lose interest or get interrupted during the checkout process. Conversational AI lets you interact with users naturally using voice and text. This means that instead of interrupting your user with a pop-up, your chatbot can wait for a lull in the conversation and quietly offer to take the customer through the payment process.
Conversational AI can gather information about a user’s intent or interests without requiring them to go through a lengthy form-filling process, which keeps customers engaged with your brand and reduces cart abandonment as well as checkout abandonment.
In order for conversational AI to lower cart abandonment, it seamlessly guides the user through the checkout process. It ‘wakes up’ at just the right time and then offers its services as a payment assistant to reduce the checkout process
Reduce Customer Acquisition cost (CAC)
The two main cost factors in e-commerce business are the
- cost of goods sold (COGS) and
- customer acquisition cost (CAC)
While the cost of goods sold mainly depends on the production line of the business, Arithmix conversational AI focuses on reducing customer acquisition costs.
Arithmix AI helps you reduce CAC by
- Reducing Customer service cost
- Reducing Marketing Cost
- Increasing customers acquired
Reduce Customer Service cost
Customers are increasingly demanding customer service through various mediums like voice, text and signal language through different channels. They want customer service in the language they chose, 24*7 available customer service. To fulfil customer needs customer service agents need to be available in high numbers which increases the operational cost for organizations.
Conversational AI helps in reducing customer service costs by automating repetitive tasks that could otherwise fall on customer support teams and by focusing on human agents to provide a better customer experience with scalable interactions.
Customer services usually include sales, billing or account enquiries, technical support etc. Conversational AI can automate up to 70% of these background tasks leaving more time for customer interaction. So it can reduce the number of employees required to handle all calls.
Conversational AI can be used to train customer support agents by providing them with the new customer interaction flows that they need to follow. It also helps customer service students in training with real customer interactions without having to wait for customer calls.
The human agent gets enough time to focus on the big picture of customer interactions rather than focusing on background knowledge like a normal conversation. This model helps organizations in reducing operational costs in maintaining customer services in various departments thus reducing the overall cost of operations.
Reduce Marketing Cost
Conversational AI can help reduce marketing costs. According to a study by Forrester, conversational AI can help reduce marketing costs by up to 30%. This is because conversational AI can automate many tasks that are currently done by human marketers. It can conduct market research, build buyer personas and even draft marketing emails. This frees up the time of marketers to do more complex tasks like analyzing data or creating campaigns that target specific audiences.
There are many other benefits of conversational AI for e-commerce businesses. These include improved decision making, reduced revenue leaks, cutting down unnecessary costs in marketing, customer support and sales and increased brand awareness. However, the most important benefit is undoubtedly the improved customer experience. When customers have a positive experience with your brand, they are more likely to return in the future and recommend you to their friends and family. So, if you’re looking for ways to improve your e-commerce business, conversational AI is definitely worth considering.
The main reason why Arithmix Conversational AI works for your business is that Arithmix main focus is on the customer lifecycle management of your business. Stay in touch with us to know more about the plan on building a meaningful conversation for your business for the entire customer lifecycle.
We have a lot more to help you convert your business to an inspirational brand that people will remember and talk about. Visit our blog to read more.
Read more on reducing the cost of ecommerce businesses at “How Conversational AI Can Reduce the Effective Marketing Cost of Your Ecommerce Business“
We help you proactively engage with your customers through a meaningful conversation!
Arithmix AI Team
Business Growth Amplified!