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HowGenerativeAI
WillImprove
E-commerceCX
in2023andBeyond
CustomcontentforiAdvizebystudioID
E-commerceretailersareataninflectionpoint.Growthhasreturnedtopre-pandemiclevels—expertssuggestonlinesalescouldrise12%thisyear1,2Thereturntohistoricalgrowthratesandincreasedcompetitionareforcinge-commercebrandstoinnovate.
Togainmarketshareandmaintaingrowth,e-commerceretailersmustadapttheirstrategiestomeetconsumerexpectationsbycreatinginstant,personalizedconnectionsthroughouttheonlinecustomerjourney.
Withthechallengeofcreatingnewrevenuestreamsanddecreasingcostsstillfrontandcenter,retailersmayfinditdifficulttodecidewheretofocustheireffortstoyieldresultsnow,whilesimultaneouslysettingthestageforlong-termprofitability.
Theplacetostartisthee-commercecustomerjourney,andtheconversationsyou’rehavingwithyourcustomersateachstep.Whataspectsofthisjourneyofferthegreatestupside?Manye-commerceretailerscanfindthatlow-hangingfruitintwoareas:improvingthequalityofyourcustomerconversationsanddecreasingcartabandonment.
2
Onlineshoppersoptforconvenience,yetthedatatellsusthatmost
peoplewhoshopthiswaydon’tcompletethesale.Bytargeting
customerconversationqualityandcartabandonment,e-commerce
retailerscanhelppotentialcustomersfollowthroughona
purchase.Theemergingtrendofconversationalcommerce,with
helpfromgenerativeAI,cantransformhowcompaniesinteractwith
theircustomersandredefinehowtheyshoponline.
Conversational
commerceuses
messagingapps,chatbots,andvideochatto
facilitatecommunicationbetweenbusinessesandcustomersand
offersaconvenient,efficient,anduniqueshoppingexperience.
GenerativeAIcan
increaseconversionby10x
andmakecustomer
serviceagents10xmoreproductive.
Withmultiplestrategiesthatincludeconversationalcommerce,
e-commerceretailerscanprovideexemplarycustomerexperiences
fromthefirstclicktothelasttodrivebusinessgrowth.
3
IsDIYself-serviceservingyouandyourcustomers?
Whenitcomestoshopping,mostpeoplesaytheywantmoreself-serviceoptions,butisthatreallytrue?81%ofconsumerssaytheywanttodoitthemselves,yetwhentheyuseunassistedself-servicetools,likeFAQpagesornon-AIbots,only15%aresatisfiedwiththeirexperience.Despitethis,53%ofbusinessesbelievethatconsumersaresatisfiedusingthesesametools.3
What’scausingthisdisconnect?
SometimestheDIYmethodissatisfactory
iftheinformationaconsumerseeks,like
basicproductdetails,pricing,ordelivery
options,isreadilyavailable.However,most
oftencustomersarelookingformore,andif
theycan’tfinditquicklyandeasily,thesale
islost.“Only3%ofonlinevisitorsactually
4
makeapurchase,”explainedMikedelaCruz,ChiefStrategyOfficeratiAdvize.“Whenyoucomparethat3%conversionratewithbrick-and-mortarstoresthatarebetween20%and40%conversion,there’sahugegap.Thedifferencemeansthere’sfrictionintheonlineshoppingexperience.”
Onlinecartabandonmentratesreinforcethatthisisamajorissue.Evenwhenaconsumerfindsaproductthatintereststhemenoughtoplaceitintheircart,sevenoutof10timestheydon’tcompletethepurchase.4
DelaCruzsaidthegapbetweenintentand
purchaserepresentslow-hangingfruit.
“There’sanopportunityto
personalizetheexperienceand
findoutwhattheconsumerneeds
atthepointofpurchase.Withthat
knowledge,youcanprovidea
betterexperienceandgenerate
moresalesforthebrand.”
MikedelaCruz
ChiefStrategyOfficeratiAdvize
5
Signsyourself-serviceneedsimprovement
Retailersimplementself-servicewiththebestintentions,specificallythatit’llbeeffectiveandefficient,butitoftenisn’t.Whencustomers
wanthelp,theywantitimmediatelyandontheirpreferredcommunicationchannel.Chatbotsareessentialbutlimitedontheirown.Theselimitscanbefrustratingwhenacustomerhasacomplexproblem.Ascustomersreturntostoreslookingforpersonalizationandassistance,onlineshoppingmustprovidethosesameelementstocompete.
“Aretailer’sconversionrateisacriticalsignofanopportunitytoimproveself-service.It’sagoodbarometerbecauseretailersalreadypaycloseattentiontoit,andit’sthefirstsignofopportunitiestoserveanunmetconsumerneed,”delaCruzsaid.“Retailerscancomparetheconversionratesusingunassistedself-servicetoconversionratesforemail,chat,orothertypesofsupportoffered.Thendeterminetherequestscustomersareaskingforthattheyaren’tgettingquick,convenientanswerstousinganunassistedmode.”
6
Anotherwaytodeterminethatself-serviceneedstoberevampedisthroughcustomersentiment.SideshowCollectiblesisaninternationale-commercemanufacturerofhigh-endpopculturecollectibles.Withanenthusiasticcustomerbase,Sideshowpridesitselfonitsuniquesolutiontohyper-personalizedandengagingcustomerassistance:acommunityofbrandadvocatestooffertailoredadviceandrecommendations.“WerealizedhowbadthatexperiencewasformostcustomerswithwhatIcallourold‘dumb’bot,”hesaid.“Itwasavirtualassistant,butwithoutAIandautomation,itwasn’tserving
“Asthebrandgrew,itstreamlinedtheprocessbyaddingAI-poweredchatbots.”
ChrisPirrotta
VicePresidentofMarketingforSideshow
consumersthewayweneededitto.When
reviewingtheseconversations,peoplewere
justfrustrated.Customerssaidtheytalkedto
the‘dumb’botforeverandnevergotwhat
theyneeded.Wesawanincreaseintheanger
levelofdedicatedcollectorsandthingswere
fallingthroughthecracks.Inaluxuryspace,
youwantpeopletobeveryhappywhenthey
spend$700onaDarthVaderstatue.”Realizing
unassistedself-servicethroughbasicchatbots
alonedidn’tsatisfycustomers,didn’tenhance
thebrandreputationforcustomersupport,
andlikelywouldn’tassistinconversion,
Pirrottaturnedtoconversationalcommerce.
7
Conversationalcommerce:Themissinglink
Whilechatbotsandcallcenterscanhelpcustomerswithquestions,retailersneedanecosystemofservices,includingleveragingAI,totapintoexistingknowledgebasesandmeetconsumers’needsattherighttime.5Thatecosystemisconversationalcommerce,nowpoweredbygenerativeAI,delaCruzsaid.ConversationalcommerceincludesAIchatbots,messaging,videos,andhumansupportfromstoreemployeesandbrandambassadorstoprovideone-to-oneassistance.
“Conversationalcommerceisthe
combinationofthemessagingthat
everyonehasalreadyembraced
connectedwiththefullyintegrated
e-commerceexperience,allowingthat
conversationtohappenwheneverthe
consumerneedsassistance.”
MikedelaCruz
ChiefStrategyOfficeratiAdvize
8
AImovesfrontandcenter
AIenableshyper-personalizedconversations.Inthelastfewyears,AIhasoperatedmostlyinthebackground,likehelpingimprovetargetingandroutingtogetcustomerstotherightsourceofassistancefaster.Italsohelpsretailersproactivelyofferhelpbasedonaconsumer’sbehavior.“Ifyou’veclickedbackandforthmanytimes,struggledwiththeproductdescriptions,orhadacartthat’sbeensittingthereawhile,AItechnologyproactivelyoffersahelpfulmessage,”delaCruzexplained.AIalsoenableschatbotstounderstandconsumerintentandthenproactivelyorchestratetheconversationbyprovidingarecommendedanswerorroutingtheconsumertoahumanagent,in-storeassociate,orbrandadvocate.
Withadvancementsinlargelanguagemodels(LLMs),AImovestotheforefrontoftheonlineshoppingexperience.6Customerswillinteractone-on-onewithAIshoppingassistantsthatfunctionasproductandprocessexperts.Whentheyneedhumanassistance,customerserviceagentswillbeabletotakeadvantageofAIcopilotstobe10xfasterandmoreproductive.TheseAIcopilotswillbeactiveparticipantsthatwillremovealotofthefrictionine-commercewhilebeingcosteffective.
9
Howaconversationalcommerceplatformimprovescustomerandemployeesatisfaction
PirrottasaidtheiAdvizeconversationalcommerceplatformhelpedSideshowfreeuptheircustomerserviceteamtofocusonmorecomplexconversationswhileenablingcustomerswhojustwantedquick,easyanswerstofindthemviaAIchatbotsandmessaging.Overall,itdecreasedwaittimesforeveryone,increasedbothcustomersatisfactionandemployeeengagement,andbestofall,itincreasedrevenue.
Beforeusingconversationalcommerce,thecustomerserviceteamwasoverworked,
especiallyduringthebusyconventionseason.
Althoughthegroupwasskilled,thereps
didn’thavetimetogenuinelyengagewith
customers,andtheteamoftenborethebrunt
fromfrustratedcustomersfedupwiththe
company’soriginalunassistedself-service.“At
Sideshow,youliterallyhavepeopleyellingat
youonthephoneaboutthedetailsofaBoba
Fettpauldron,andyoucan’tdoanythingabout
it.Asyoucanimagine,it’snotsomethingmost
peoplewanttoheareveryday.”
10
Fortunately,sinceusingconversationalcommerce,that’schanged,Pirrottasaid.“Now,theteamcantalktocustomerslongerandfindoutwhattheywantandneed.Theycanlookatthecustomerhistory,usetoolsintheconversationalplatform’sdashboardandsay,‘Oh,they’vebeenbrowsingthisproduct,maybeIshouldofferthemapromotion.’”Pirrottasaidtheynowhavethebreathingroomtooperateasacustomersalesteam,aswellasacustomersupportteam.
Theimprovementwasimmediate,Pirrottasaid.Assistede-commercedeflected74%ofthecallstoAIchatbots,thenhumans—eitherambassadors,storeemployees,orcustomerserviceteammembers—handledtherest.Customersatisfactionscoresescalatedto70points,Pirrottasaid.CSATsforambassadorswere90%.What’smore,CSATsforchatbotswereat45%,nearly10pointsabovetheindustryaverage.Inaddition,revenueperconversationwas$43,andtheexpertconversionratewas8.7%.Besidesimprovedstatsforcustomerservice,Pirrottasaid,increased
employeeengagementandloweremployeeturnoverindicatedadditionalbenefitsofthechangetoconversationalcommerce.
74%
90%
45%
$43
8.7%expertconversionrate
ChrisPirrotta
VicePresidentofMarketing
forSideshow
numberofcallsdeflectedtoAIchatbots
CSATscorefor
ambassadors
chatbotCSATscore
revenueperconversation
11
Implementingassistede-commercethroughoutthecustomerbuyingjourney
Whileit’seasytoseehowassisted
e-commercecanhelpacustomermakeapurchase,conversationalcommercetechnologycanimprovetheentirecustomerjourneybyeliminatingfrustrationfromthestart.Pirrottasaiditcouldalsohelpbuildravingfansfromcustomerswhoknowtheycancallandgeekoutabouttheirfavoritepopcharacterswithcustomerservicememberswhohavethetimetodojustthat.
Regardlessofwhereacustomerisinthebuying
journey,assistede-commercecanenhance
theexperience.Forexample,atthebeginning
ofthejourney,whencustomersclickona
travelwebsite,theyareimmediatelydeflected
toan
AI-poweredchatbot
toassistthemwith
questions.Sincemanypeoplenowresearch
andmapouttheirtravel,customerswithbasic
questionscaneasilygethelpandbeontheir
way.Butifthecustomerneedsmorehelp,
they’retransferredtoacustomerserviceagent
whocanaddressmorecomplexissues.
12
Duringthejourney,acustomermaybeconsideringtwosimilarproductsandneedshelpdecidingwhichonebestfitstheirneeds.Onlinedescriptionscanprovidealotofinformation,butsometimes,questionsneedtobeansweredbyahumanwithnuancedknowledge.Assistedself-serviceconnectsthecustomertoanin-storesalesassociateorabrandadvocatewhocandescribethefeelorweightoftwodifferentfabrics,forexample.
Whenacustomerneedsaquestionansweredbeforetheyfeelcomfortablepurchasingaproduct,providingthatinformationeliminatesaroadblocktorevenue.Whetherit’sanAIchatbotoranagentwhoconfirmsthatanearbyretailerhastheproductintherightsizeandcolortotryonorsharestheonlinereturnpolicy,thecustomerisonestepclosertofinalizingtheirpurchase.
Pirrottaaddedthatanuptickincustomerengagementandsentiment,positivecustomersocialmediaposts,andincreasedsalesfromcustomersupportdemonstratedthetechnology’seffectiveness.Beforeinvestingin
13
assistedself-service,Pirrottasuggestedlookingforvendorsthatwillrespecttheretailer’sbusinessandnottrytoputtheminacookie-cuttersystem.Theplatformshouldbeeasytoexecute,buildupon,andaccommodatenon-monetaryrewardsforadvocates.
Whenbrandsimplementconversationalcommerce,customersfeelheard,whichincreasescustomersatisfaction.Yearsofresearchshowsthatsuchapositivecustomerexperienceincreasesbrandloyalty.7Evenbetter,loyalcustomersspendmore.Theyare50%morelikelytotrynewproductsandwillspend31%morethannewcustomers.8Inshort,satisfiedcustomersshowtheirappreciationbybuyingmore.
“Conversationalcommercebridgesthegapbetweentheonlineandbrick-and-mortarexperience,”delaCruzsaid.HeagreedwithPirrottathatitdidnottakelongtoseeresults.“Whenwebridgethatgap,e-commercebrandsimprovetheshoppingexperienceandincreaseconversionratesbyafactorof10.”DelaCruzsaidretailerscanexpecttoseeanincreaseinonlinesalesof10%to20%.
“GenerativeAImakesitpossibletoassistvirtuallyallonlineshoppersinascalableandaffordableway.It’sanexcitingtimetobeine-commerce.”
MikedelaCruz
ChiefStrategyOfficeratiAdvize
14
Sources
1.
Rogers,Jack.“E
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