Conversational AI in Retail: What are the Real Benefits?

Conversational AI in Retail has become a crucial component of customer service due to its rapid progressand the continual need to improve user experience.

Because of how quickly technology advances, the way businesses of all sizes and sectors conduct their operations has also changed in order to remain relevant. Prime examples of this are companies, such as eCommerce retailers, that have turned to the use of conversational AI because they rely on customer service to give a comprehensive 360-degree customer experience.

Over the last decade, computers and other devices' capacity to understand what humans say and respond effectively has increased dramatically. Virtual AI assistants have become a crucial component of customer service strategies due to their rapid advancement, growing consumer expectations, and the continual need to improve user experience.

Conversational AI is a collection of solutions that automates user interactions using artificial intelligence (AI). They can be used for a variety of functions, such as answering product or service queries, delivering information, or making bookings. 

Virtual AI assistants are capable of expanding the efforts of customer care workers by offering help 24 hours a day, seven days a week. They are rapidly gaining popularity in retail to deliver more efficient, individualized customer care and easier client engagement. This is often due to their ability to deliver product recommendations and assistance in a more complex, frictionless, and customized manner than a standard internet search box. 

Retail AI assistants are typically employed to aid in all customer interactions, before and after-sales, and unlike traditional sales representatives, are able to recall past conversations. So, if an assistant has previously diagnosed and fixed an issue or answered a specific question for a client, and that customer then returns with a different issue or question, the assistant will already have an awareness of some of the difficulties impacting that individual and should be able to locate the correct solution with less friction.

Virtual AI Assistants are an excellent tool for increasing revenue and improving customer service. They may be utilized in a variety of ways, ranging from answering simple common consumer inquiries to more advanced conversational agents capable of understanding natural language and performing activities on your company's sales representative's behalf. If your company is weighing the cost of implementing conversational AI to the potential ROI of using Conversational AI, let's look at the benefits so you can decide for yourself!

Better Customer Experience

Regardless of how they are applied, the goal of conversational AI in retail is always the same: to improve customer experience and, ultimately, consumer happiness. Consumers, particularly in the retail business, expect individualized experiences, and conversational AI can evaluate customer questions and answer much faster than a human would. Through the vast amounts of data AI assistants have access to, and the speed they can process it using AI and Machine Learning, conversational AI can provide optimized user journeys that improve business KPIs.

Some people dislike phone or chat contact with humans, so conversing with an AI is more accessible and less stressful. Some people are introverts, while others have had stressful past interactions with customer service staff. Furthermore, AI has infinite patience and no emotions. As a result, customers will not feel pressured during the interaction, they will not have to worry about the sort of questions they ask, and the added value of conversational AI and automation leads to a better experience for the user.

Predict Customer Behavior

Because of the quickly shifting nature of customer behavior during the crisis - swinging between massive surges in online purchasing and intermittent rushes back to brick-and-mortar businesses, as seen this holiday season - conversational AI became an especially crucial tool for merchants.

This is due to its intrinsic tendency to improve at detecting patterns. The fact that peaks in online shopping would be accompanied by peaks in the number of customer service questions, as well as the number of returns that would have to be processed and dealt with, became clear. Conversational AI tools earned their own here as well, by automating and guiding customers through the refund approval process.

Retail is one of those industries that sees massive traffic regularly. You may now obtain a good notion of how much data is gathered in the minutes after each query, service request, or purchase, for example. Using the application's smart intent analysis approach, AI-powered assistants will help assemble, evaluate, and derive important information on customer behavior based on previous encounters. These insights will give a cohesive perspective of future market trends, which can then be used to develop the appropriate plans.

24/7 Availability

Users do not have the patience to wait for lengthy periods for responses to their customer questions. Without a virtual AI assistant, customers must remain on messaging services to converse online with a human agent. Because of the long response times, the conversation may begin with a dissatisfied consumer, lowering the CSAT and NPS KPIs. Users receive rapid replies when online business owners decide to add premium AI eCommerce assistants. Users will be referred to one of your customer care employees if their inquiries are more complicated and go beyond the capabilities of your bot, while all interactions contribute to its assisted learning process

Consumers nowadays demand to interact with a brand 24 hours a day, seven days a week. They dislike waiting for replies. To bridge the time zone divide and deliver responses to consumers 24 hours a day, businesses must use round-the-clock self-service technologies such as AI-powered assistants and speech bots to address customer inquiries in real-time. These sophisticated virtual AI assistants are so advanced that they may give rapid replies to product or service-related inquiries by retrieving previously supplied data without the involvement of an agent. 

Reduce Operational Costs and Increase Revenue Generation

Hiring many customer service teams might be costly. According to Juniper Research, the use of conversational AI in retail, banking, and healthcare will save over $11 billion per year by 2023, up from an anticipated $6 billion in 2018. Many corporate users' demands can be handled by AI assistants without the need for human employees to interact.

Conversational AI has a significant potential for enhancing lead generation because of how it is designed to learn, acquire information, and offer the best relevant answer. By asking the proper questions and guiding potential buyers to the necessary product or service, AI assistants can discern between different sorts of requests and optimize the journey to optimize conversion rate. This move can reduce the amount of labor required by sales teams while making the process quicker and more precise.

Upselling Opportunities

Upselling and cross-selling are often handled manually by the individual sales representative. Conversational AI relieves your sales force of this responsibility and provides them with tools to better handle current clients or challenging issues.

Based on the user's profile and interactions, conversational AI may automatically upsell or cross-sell inside a discussion, providing comparable or complimentary items or services that may interest them based on their profile and behavior. Automating remarketing messages may also be done with conversational automation, delivering product suggestions targeted to them long after the primary discussion has ended!

A virtual AI assistant can improve the customer journey and smooth the shopping experience by recommending products based on the user's needs; notifying customers when products are out of stock; promoting sales or deals; announcing the release of a new product, assisting users in filling out forms, and so on. When consumers are quickly directed, have all of their queries addressed, and the recommended goods meet their needs, shopping cart abandonment and bounce rate can be greatly reduced. Implementing a skilled AI assistant and preparing your eCommerce website for voice commerce increases your chances of success and keeping ahead of the competition significantly.

Learn more about DRUID AI for retail here, or schedule a demo with us below to see how it can benefit your business first-hand. 

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