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How is conversational chatbot marketing redefining e-commerce?

Engati Team
min read
How is conversational chatbot marketing redefining e-commerce?

The E-commerce market has become the need of the hour and is expanding fast. With the rising user demand, it has become essential to maintain the uninterrupted flow of services around the clock. Catching up with the growing needs of buyers is one of the most important trends in the online commerce market.

Worldwide ecommerce sales
- Worldwide ecommerce sales (Image source: Shopify)

When companies realised that they are finding it difficult to fulfill the growing needs of the customers and adapt as per them, they switched to automation.

As a result, we now have AI chatbots that can amplify customer-driven and customer-centric practices through conversational chatbot marketing.

Chatbot automation is key in e-commerce

A chatbot is similar to a digital colleague that delivers more business value than any other average human assistant. It will take on repetitive, mundane tasks by combining an intuitive UI with robotic process automation (RPA), which is the new-age rage in town. Look at the rate at which the chatbot market is growing for e-commerce.

Chatbot market growing for e-commerce

For example: An IPsoft client automated the off-boarding process for roughly 200 workers each month. This eliminated the need to make more than 2,400 individual requests. Further, the mean time to resolution was brought down by 81%. Chatbot interactions have improved dramatically over the last 12 months.

With the abundance of human knowledge recorded in writing, and more and more of it being digitized every second, there is immense value in integrating this knowledge with systems that go by automation.

Reordering a product that’s almost over, sharing feedback for a product that you really like, all of it must be consumed under the power of automation. Developers must keep closer tabs on the consumer relationship with a chatbot. Companies are making increased investments in deep learning technology and they have to tackle every obstacle that comes in the way of consumer acceptance.

Benefits of implementing conversational chatbot by an e-commerce store

  • It enables a 2-way communication with the customer. It doesn’t just tell them things or guides them, but also learns from them, hears their questions, and builds a relationship.
  • The conversational bot interacts with 2 to 5 times more customers than previously possible over email.
  • Stores using conversational commerce, in the right way, are increasing annual revenue by 7 to 25%

These stats are amazing, and they are only the beginning. The future of conversational commerce is very bright.

An article published on towardsdatascience.com talks about building a chatbot called ‘Robo’ capable of checking in on people’s mood and taking the necessary actions to cheer them up. It will also be deployed to Slack and will be a fully functional Slackbot capable of listening and responding to requests.

Why your business needs an AI chatbot

Credence Research recently predicted that enterprises would transmit 2 trillion messages a year by 2017 to create a market worth $78m by 2022. Facebook reports that there are over 10,000 developers on their platform who are developing Facebook Messenger Chatbots. Slack, The world’s fastest growing business tool is supposedly investing $80 million in Slackbot startups. This is majorly because chatbots allow customers the flexibility to use an app without actually installing it on their phone.

From the smallest to the largest enterprise, they are all vouching on chatbot technology.

Chatbots are going to get a lot smarter with more training. They will run millions of algorithms in real time and with analytics, will devise a strategy to convert every prospect individually. The world that we live in today is polarised and sensitive. Therefore, it will take considerable trial and error before AI chatbots master the art of polite conversation.

Ai chatbots are increasingly replacing traditional customer engagement forums. Automation is the key to enhance the potential and pace of operations.

Today, many e-commerce giants rely on AI and ML to understand the buying pattern of millions of users. This helps them build a successful marketing campaign and pitch products to the buyers accordingly.

In fact, this kind of growth in e-commerce represents that people have shifted towards such tech-based AI platforms.

Check out the demo video of Engati's e-commerce platform here to know more about conversational chatbot marketing!

15 key metrics to consider when determining the effectiveness of e-commerce chatbots

According to Applied AI’s report, apart from training an e-commerce business must tend to the-

  1. Total number of users
  2. Number of active users
  3. Percentage of engaged users
  4. Total new users
  5. Messages that start a conversation
  6. Frequent bot messages
  7. Messages received by the bot
  8. Missed messages
  9. Total conversations
  10. New conversations
  11. Rate of retention
  12. Goal completion rates
  13. Number of times the interactions failed
  14. User satisfaction with the chatbot
  15. Virality of the chatbot conversation

Why conversational chatbot marketing is the future of e-commerce

Provides personalized services

AI chatbots remember the past interactions of the users, and use them further to customize the future conversations. Moreover, bots can keep the focus on customers while promoting the products or services. Plus, by personalizing the services, you boost the engagement rate, and also save the time of customers by promoting relevant products.

Records real-time interactions

AI chatbots enable e-commerce businesses to get hands-on real-time user interaction. This information can be analyzed to improve the services as per the user input. The instant access to critical data reduces the operation cost, and also maximizes the efficiency and functioning of a business.

Eases customer executives

As chatbots can handle 80% of the repeated queries of the customer, they can help customer care executives to keep the locus of support to solve complex queries. By addressing complex queries with priority, you can win more customers while reducing the operation cost.

Provides fast, reliable and cost-effective customer support

According to a report by slicktext, more than 50% of customers anticipate that businesses are open 24/7. Chatbots remember user interactions and queries. They are available 24X7 and they respond instantly. E-commerce businesses that were unable to maintain this instant support had to shut down because competitors were providing 24/7, come rain or shine.

Intelligent Chatbots can answer all repeated queries of the customers regarding products and services in real-time. With instant support and two-way communication, bots can establish a real connection with the users.

As a matter of fact, the major part of the E-commerce operations relies on traditional customer engagement and support methods.

AI powered chatbots can answer 80% of the repeated customer queries. And, in case it fails to address the issue, it will instantly transfer the query to a live chat agent. A bot can tell users about the offers and benefits of paying online.

Almost every e-commerce website offers FAQ, customer reviews, and a questions section. These are essentially designed to clear the clutter that a buyer might encounter while making a purchase.

Read more about customer support chatbots here.

Allows customers to browse and compare products with ease

The most effective way to engage and convey messages to users is through 1-to-1 conversations.

E-commerce companies allow the users to compare products and filter them as per their requirements. With all the information printed on the screen, customers often struggle to find the factors that can influence them to buy a product.

AI chatbots, on the other hand, help users in understanding the basic difference between the products and which one can be best for them as per their requirement.

By commanding the E-commerce chatbot, a customer can ask to filter out specific information. This gives them a sense of command as well as make the process easier.

Act as the perfect knowledge base

The process of educating customers with necessary information is easy with AI based chatbots. For example, when a customer selects a specific product, the bot will offer one-touch access to the FAQ section within the chat screen. Moreover, if customers require additional information, the chatbot can take in the input and present the required information within seconds.

As a result, the interaction between the e-commerce chatbot and its users simplifies the buying process, thus boosting engagement rate and sales.

Generates sales with story-telling

Storytelling is a pure form of art. When infused with an AI e-commerce chatbot, it can help connect brands with customers. This ultimately enhances the engagement rate once AI chatbots master the conversations by learning from user inputs.

In a way, e-commerce businesses don’t just sell products to their customers. Instead they educate them about the product and keep it alive in their memory. They engage visitors using interactive tools, such as Images, gifs, videos, and audio. Which ultimately leads to more engagement with the brand as the chatbot grasps your customer's attention more effectively.

Rich analytics to drive further sales

In e-commerce, there is nothing more valuable than interested buyers. These buyers mark their favourite products on the website. Either they make an instant buyer decision or they abandon their carts and wishlist section in cold state for months. As a result, millions of products don’t reach the customers.

Fortunately, AI bots are changing this practice altogether. A bot can understand the requirements of the visitors by analyzing the products in their carts and wishlist. Further, bots can recommend better products to users. This can result in the growth of customer base as well as an increase in sales.

Email marketing and form filling with chatbots

AI bots can engage with users with the help of automated trigger emails and instant responses. Moreover, e-commerce businesses can take advantage of chatbots for persuading customers to fill up forms and collect the data.

Collects feedback

There are two ways an e-commerce business chatbot can get the feedback of the customers.

First is via reviews and the other is via web forms. If a business puts too much focus on collecting manual reviews then sooner or later they will realise that it is not cost-effective. This process is, in fact, too time-consuming. Hence, very few customers post their genuine reviews.

On the other hand, in case of the delivery of the defective product, a customer makes sure to post the bad review.

Bad reviews hurt the business and that’s why there’s a need to enhance the customer experience. Via AI chatbots, e-commerce businesses can trigger the feedback collection process as per the defined time. Then a bot can get the feedback of the users while interacting and sympathizing with them. And, assuring them that their issue has been transferred to the concerned team in real-time.

This way, you can reduce the impact of bad marketing via AI chatbots. Instead, the chance is that people may promote your platform as the most reliable one among their friends and family members.

Provides metrics

When most people think of AI powered chatbot they consider it as a conversational interface. But, when utilized correctly, they can act as a goldmine.

Right user metrics can do wonders to your business. But, traditional tools fail to fetch important details regarding the interaction of the website visitors. However, an AI-based E-commerce chatbot can collect exclusive details of the users in real-time like, interaction with products, preferences, what they disliked, and how they responded to the chatbot, etc. When utilized correctly, these user details are no less than a gold mine. They can help E-commerce businesses to enhance the customer experience by improving the services in the right direction.

Explore Engati analytics dashboard.

The best way is to set an early impression on the user and this could be done by adding a welcome message right in the beginning such as ‘Hi, I am the virtual assistant of ABC, How can I help you? Or

“Hi, Welcome to abc.com’. What are you looking for? Here are some options to begin with”.

See how Engati's chatbot templates from the bot marketplace improve conversational chatbot marketing.

Incoming messages

AI chatbots allow you to get an overview of the total messages sent by the users. This data can help in understanding the engagement of the visitors, and if the conversational flow is intact or not. Businesses look for further categories that help them build a proper conversational flow for better bot performance and user engagement.

Note: If you are getting good website traffic but low bot-visitor engagement rate, then you should consider revising the conversational flow of your bot. If you would like to seek help from Engati, check out our bot marketplace!

Total users

With an AI e-commerce chatbot, businesses can get easy access to information such as, how many users visit the website. This serves to be useful because visiting users don't just add to the traffic but businesses must engage them so they become potential buyers.

Tip: Engati builds chatbots for e-commerce and retail businesses. If you would like to take a look, visit this link!

User stats and session length

In addition to the above-discussed metrics, The user stats section gives businesses a combined list of analytics of user engagement. It displays the duration of the bot-conversation for the average sessions per day, average incoming messages per user, and more.

All this information can work as a goldmine for e-commerce platforms. Moreover, by introspecting the overall performance of the chatbot you can understand the behavior of the website visitors to improve engagement.

Conversational commerce can be used to connect with prospective customers at all stages of the customer journey—from engagement to product purchase—in increasingly personalized ways.
- Emarketer report on Conversational Commerce.

End-to-end support for e-commerce

From sales and promotion pushes, to catalog searches, personalisation, product ordering, payments, order tracking and fulfillment to post-sales customer support and returns - all from a customer's smartphone via a messenger app - for intelligent customer interactions and queries - always available 24x7 and none of the uninstall issues faced by a traditional mobile app. It's easy, it's free to start and it's the future of interactive and conversational eCommerce - it's Engati. Come to experience the future of online retail like no other chatbot platform can provide - with out of the box integrations for your popular eCommerce store software so you don’t have to change a thing.

Is your mobile app strategy in disarray? Do customers frequently uninstall your app? Have you spent large amounts building your app and larger amounts in promoting it, only to deal with uninstall rates of more than 70%? Your answer could be Engati.


E-commerce chatbot always thrive to delight their customers with an unparalleled experience. But, with traditional tools of engagement, it eventually results in average customer satisfaction.

Good customer experience will always lead to a good customer satisfaction rate. For this, conversational chatbot marketing is coming out to be quite useful.

E-commerce businesses often struggle to with improvising customer experience. This is mainly because unhappy customers are unlikely to return and make a purchase again. Therefore, it’s important to understand if a customer is happy with the services or not. Conversational chatbot marketing opens a door for customers to express what they’re feeling so businesses can understand and empathize with their customers. 

Apart from the business perspective, it’s extremely important to get the feedback of the users. It can help detect the weak points in the chatbot conversation flow that may include incorrect answers, poor conversation design, repetitive responses, and knowledge gaps.

Your e-commerce business can reach new heights with Engati. Explore the power of conversational chatbot marketing solutions by registering with us today.

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