Imagine you’re dedicatedly strategizing your business, but then backend tasks break your flow.
Frustrating, right? Order management, email responses, contacting suppliers, invoicing, shipment, marketing, product listing, etc., all hinder progress.
But do you know you can automate most of these tasks using simple tools?
According to a recent study, 95% of the customer support representatives experience stress and decreased productivity.
This makes customer support one of the most challenging obstacles in retail.
While learning how to automate all business processes needs an entire thesis, let’s just focus on one aspect today and discover how conversational AI benefits retail businesses.
What is Conversational AI?
You’ve heard of ChatGPT, right? Conversational AI is like its little brother, who uses natural, human-like dialogues to answer queries and solve customer problems.
That’s just the basics.
The key components of Conversational AI include:
- Natural Language Processing (NLP)
The core technology that allows the system to understand, interpret, and respond to human language.
It includes speech recognition, language parsing, sentiment analysis, and language generation.
- Machine Learning (ML)
Conversational AI systems often use machine learning models to improve over time.
They learn from interactions and become better at understanding context and providing relevant responses.
Did you know that 80% of companies are either using or planning to adopt AI-powered chatbots for customer service by 2025? It works like a virtual assistant.
You just feed it with the relevant information, also known as a company or service knowledge base, and it generates responses accordingly.
Older chatbot models were pretty difficult to use and were likewise avoided by customers.
Modern conversational AI can comprehend context, retain past interactions, and perform actions independently when integrated with data and customer relationship management (CRM) systems.
Here’s an example: multiple U.S.-based law firms that leverage legal process outsourcing have automated their tasks using conversational AI.
These chatbots handle all client queries and allow attorneys to free up their time to focus on handling lawsuits.
Resultantly, it boosts their firm’s efficiency and helps them deal with more cases.
What are the Benefits of Conversational AI?
So, the question is, why use conversational AI? That’s because it offers numerous benefits. Here’s a list of the advantages:
1. Improved Customer Experience
Imagine getting answers instantly, 24/7.
Customers don’t have to wait in long queues, even if they’re inquiring about product details or need help placing an order.
AI helps right away and makes the experience faster and more satisfying for everyone involved.
2. Increased Efficiency
Think of all those repetitive tasks you handle daily, such as answering common questions, checking order status, or booking appointments.
Conversational AI takes care of them and allows you to focus on more important matters. You don’t have to keep answering the same questions over and over. It saves you time and makes you more efficient.
3. Cost Savings
Hiring a full team for customer support can get expensive.
But with conversational AI, you don’t need a large team to handle routine tasks. It manages basic queries and saves on labor costs to help you reallocate resources to more strategic areas of your business.
4. Scalability
Once your business starts to grow, handling more customers becomes a challenge. But one simple chatbot can handle an unlimited number of interactions simultaneously.
It doesn’t matter if you have one or a thousand customers reaching out; conversational AI is always ready to assist without breaking a sweat.
5. 24/7 Availability
Customers might get frustrated if they have urgent queries but no one to answer them. You don’t always have someone available to help your customers after hours.
Conversational AI is different. It works around the clock, so whether it’s 3 p.m. or 3 a.m., customers can always get the help they need, anytime, anywhere.
5. Consistency
You’ve probably dealt with inconsistencies in customer service.
One agent might give a different answer than another. Conversational AI avoids this.
It gives consistent, accurate information every time, so customers always get the same high-quality response, no matter when or where they ask.
7. Data Insights
As a business owner, you would really want to understand your customers better. Conversational AI makes it possible.
It gathers data from every interaction, helping you spot trends, customer preferences, and pain points. These insights can help you improve your services and make smarter business decisions.
8. Enhanced Engagement
Instead of a boring, robotic exchange, conversational AI makes interactions feel personal and engaging.
This includes offering personalized recommendations and remembering past purchases, which creates a more interactive experience for your customers.
Result? They feel more connected to your brand.
9. Multilingual Support
Your customers speak different languages, right? Conversational AI can talk to them in their preferred language, breaking down language barriers.
No need to hire multilingual staff, AI handles this, providing support to a global audience without missing a beat.
10. Reduced Human Error and Burnout
Handling endless customer queries can leave your support team burnt out.
AI steps in to take care of repetitive tasks, which reduces human error and alleviates stress. It helps your team focus on more complex problems to make their workday easier and more productive.
11. Easy Integration
Integrating conversational AI into your existing systems is actually pretty easy! AI fits right in your CRM, website, or customer support platform to enhance what you already have in place.
No need for a complete overhaul, just a simple upgrade to supercharge your customer service.
7 Use Cases for Conversational AI in Retail
How and where can you use conversational AI? Here’s a list:
– Personalized Shopping Assistance
Can you guess what customers hate? Spending time finding the products they want.
But here’s the catch: retailers can use conversational AI to offer product suggestions based on a buyer’s preferences and past behaviors.
Imagine a customer asking, “What’s new in summer fashion?” The assistant suggests styles just for them.
– Instant Customer Support
You might be away when a customer decides to ask a question.
Conversational AI is never away! Now, you can answer queries anytime, anywhere.
It can track an order, provide store hours, or help with returns. Customers get their answers without waiting. No more frustrating hold times. Just fast and effective communication.
– Order and Inventory Management
A customer visits your store and asks, “Is this shirt in stock in medium?” The AI assistant instantly checks stock levels and even notifies when it’s back in stock.
On the backend, conversational AI automates restocking requests, ensuring businesses don’t run out of popular items.
– Virtual Try-Ons
What if you could see what the product will look like after you buy it? Well, it’s no longer a dream. Conversational AI can assist in virtual try-ons, especially in beauty and fashion.
A customer could ask, “How does this lipstick shade look on my skin tone?”
The assistant would instantly show a virtual simulation. How cool is that?
– Loyalty Program Integration
Customers can check their rewards points or redeem offers with a simple chat.
This removes the need to dig through emails or remember codes.
A quick conversation gives customers all the details, making loyalty programs easy to access and use.
– Sales and Promotions Alerts
Instead of waiting for email newsletters, customers can ask conversational AI for the latest deals.
“Are there any promotions today?”
The assistant delivers the best offers, ensuring customers never miss out on discounts and sales.
– Easy Checkout Process
Rather than filling out long forms, customers can ask to complete their purchase with just a few words.
“Can I buy this?”
Conversational AI handles the transaction securely, making the entire checkout process as quick and smooth as possible.
Examples of Conversational AI in Retail
So far, we have discussed conversational AI in retail and what benefits it brings to the table. Now, let’s discuss some examples you can use:
- Drift
If you’re looking for a way to have real chats that feel personal, Drift’s a great option.
It helps you create AI-powered chatbots that can answer customer questions, recommend products, and even qualify leads while you’re busy doing other things.
It’s like having an assistant who never sleeps.
- Intercom
Intercom is like the Swiss Army knife for conversational AI.
It handles everything from answering customer questions to helping you sell products.
It’s used by tons of retail businesses to connect with customers across different channels and give them the support they need, all in one place.
- LivePerson
LivePerson helps connect you to your customers in an easy and direct way, whether it’s messaging on your website or social media platforms.
It lets you handle customer service, sales, and even payments right from one chat window. You’ll be able to give a smooth, personalized experience no matter where they are.
- Ada
Ada makes building your own chatbot super easy.
You can design an automated assistant that answers questions, tracks orders, and even helps customers choose the perfect product.
Ada’s simple setup and powerful AI help your business handle customer service at scale, all without you lifting a finger.
- Tidio
Tidio combines chatbots and live chat, allowing you to offer quick answers to common questions while still giving customers the option to talk to a human when needed.
It’s a great fit for small and medium-sized businesses looking to keep their customers engaged and supported, 24/7.
- Bold360
Bold360’s AI lets you connect with customers in a natural, conversational way.
It’s designed to provide personalized responses, whether it’s helping customers find the right products or answering questions after they’ve made a purchase.
It integrates smoothly into your existing systems, making it a perfect tool for busy retail teams.
- ManyChat
If you’re big on social media, ManyChat is your go-to conversational AI tool.
You can set up automated messages on platforms like Facebook Messenger and WhatsApp, so customers can get support, track orders, and even shop directly from the chat.
It’s like having a storefront right inside your messaging app.
Summing Up
Artificial Intelligence is automating most of the tasks we’ve always struggled with.
Managing a business is pretty easy, but remember, your competitors are now focusing more on strategizing and marketing.
With things getting simpler every day, competition is getting tough.
So, it’s always wise to free up your time and energy, automate backend tasks, reduce overhead, and use the saved revenue on building your business strategy.
