The power of chatbots: how to increase your e-commerce sales

Digitalization has significantly boosted e-commerce in recent years. More people than ever are shopping online. But as sales figures rise, so do customer expectations of customer service. 

Long waiting times, inadequate responses and limited availability can significantly jeopardize customer loyalty. Online stores that do not offer a 24/7 service are mercilessly left behind by the competition.

This is exactly where chatbots come into play: they transform customer service, help companies to offer a first-class and personalized customer experience and thus reduce the customer bounce rate.

Would you like to learn how to optimize your customer service with AI chatbots, implement best practices and exploit the full potential of this technology for your company? This article will tell you!

The growing expectations in e-commerce

The demands on customer service today are higher than ever. According to a Fralytics study (2023), only 66.7% of online stores respond to written customer inquiries, with the average response time being several hours [1]. This is despite the fact that modern customers expect 24/7 availability and a fast, personalized solution to their concerns.

A recent Metorspace study (2024) shows how serious a poor service experience can be: 60% of online shoppers switch providers after just one bad experience, and this figure rises to 87% after two bad experiences[2]. At the same time, customers state that they would be willing to pay up to 16% more if they received an outstanding customer experience in return [3].

Why good customer service is crucial

Good customer service means more than just solving problems - it binds customers to a company in the long term. But if the service isn't right, customers will quickly leave. A PwC study (2023) shows that 80% of consumers expect personalized experiences tailored to them [3]. Speed and reliability make the decisive difference here and are the basic building blocks for long-lasting customer relationships.

Well thought-out customer service therefore offers the following advantages for your company in e-commerce :

• • higher turnover

• • Higher customer satisfaction

• • Longer-term customer loyalty

Availability plays a key role in e-commerce in particular. 54% of orders are only received in the evening between 6 p.m. and 10 p.m. - a time when many companies are no longer personally available to their customers [4]. In 2022, 48% of German online retailers were no longer available after 6 p.m. and just 5% of companies actually offered 24/7 customer service [4]. 

We have learned how important good customer service is - but why can't many companies offer it? Many companies struggle with long service times, staff shortages and language barriers. These are all challenges that the use of a chatbot can counteract. And if you act quickly, you can use this competitive advantage over the competition to your advantage.

Why bots are so useful in e-commerce

• 24/7 availability: Chatbots are available to customers around the clock
• Fast response times: Customers receive immediate responses to their inquiries, which increases satisfaction and avoids long waiting times.
• Higher conversion rate through personalizationCustomers who feel well advised are more likely to buy.
• Stronger customer loyaltyA chatbot with its own personality strengthens branding.
• Cost savings: By automating routine tasks, bots reduce the need for additional staff, which can lead to significant cost savings.
• Omnichannel capabilityChatbots can be seamlessly integrated into various platforms such as web, messenger and social media.
• MultilanguageSimple bot implementation in different languages overcomes language barriers.

6 use cases of chatbots in e-commerce

The trend in customer service is moving away from reactive to proactive solutions. This is exactly where chatbots offer a powerful solution to give customers a feeling of support and thus meet the rising expectations in customer service. They enable customer queries to be answered immediately around the clock and provide assistance with problems.

Here are six of the most common use cases for chatbots in customer service:

Product advisor bots: the future of personalized advice

In bricks-and-mortar stores, customers often have the opportunity to receive personal advice from a competent consultant. However, this type of direct, individual support is often lacking in online retail. This is exactly where product advisor bots come into play: they fill the gap by offering personalized advice as digital assistants.

The enormous variety of products in e-commerce can be overwhelming. Product advisor bots help by asking specific questions about preferences such as budget, style or materials and recommending suitable products based on this information. The result? Advice that is in no way inferior to that of a stationary customer advisor. This type of interactive support not only promotes the purchase decision and increases the conversion rate, but also strengthens the customer's trust in the brand.

In addition, these bots use the customer's purchase history to create customized offers or exploit upselling potential by recommending suitable add-ons or upgrades. This individualized support is increasingly becoming the standard in e-commerce and enables online retailers to offer their customers a shopping experience that goes beyond the mere purchase.

This example clearly shows how a product advisor bot guides the customer through the conversation by asking specific questions about preferences such as price, style, color or functions. Based on the answers, the bot searches the product range and suggests suitable items. This product range can always be kept up to date in the BOTfriends X platform by means of a simple CSV upload.

These personalized recommendations help customers to find their way around the extensive range of products and make a purchase more quickly. In addition, the bot can access previous purchase histories and suggest products based on the customer's previous preferences

Bottom Line

Chatbots have become an integral part of modern e-commerce. They offer a cost-effective way to improve customer service, increase customer satisfaction and give companies a clear competitive advantage. 

BOTfriends offers a range of innovative solutions for AI-based chatbots and voicebots that can be implemented easily and without programming knowledge. With features such as knowledge base imports, multilingualism and omnichannel compatibility, our chatbots are ideal for e-commerce businesses looking to take their customer service to the next level.