In today’s fast-paced digital marketplace, your business’s success depends on online conversions. Every engagement, every click, and every interaction matters. It can make the difference between a profitable year and a not-so-profitable one. 

Online shopping is now mainstream as more retailers move their products online🔯 and more shoppers become comfortable with buying products sight unseen. This can be a great user experience, especially if the brand has a🅰nticipated a user’s every need. They treat each browser as a potential lead, following their user behaviors and patterns to deliver unparalleled service.  

One way that online e-commerce brands are standing out is through conversational AI — a tool that is not only ❀gaining traction but also t🦹aking the lead in driving conversions.  

What is Conversational AI? 

Conversational AI is a subset or field of AI that focuses on making the technology as human-like as possible in its conversations. During each interaction, AI learns and interprets exchanges and picks up conversational traits. It utilizes natural language processing (NLP) and natural language understanding (NLU) to better understand users’ 🐎queries and intent. Conversational AI can be implemented through different channels such as chatbots, virtual assistants, and AI agents. 

Chatbots used by e-commerce retailers can respond to customer inquiries without appearing stilted or too formal. Virtual assistants on devices such as Amazon Echo or Google Home will learn the household’s commands and pick up on user preferences. AI agents that assist with task automation and com♌pletion can understand how users prefer certain processes to be completed.  

The main benefit of conversational AI is improved customer service. Consumers will appreciate when exchanges feel like they are c💜omi🌸ng from another human as opposed to a computer. It can also help automate tasks, streamline processes, and reduce human error. 

Now that you have a sense of what conversational AI is and some of its benefits, keep reading to unde꧟rstand how it can make a difference in i✤ncreasing online conversions.  

Facilitated Transactions 

One of the main ways conversational AI can make a difference in online conversions is through facilitated transactions. Think of AI as a personal shopping assistant. It’s there to help consumers find products or services that are relevant to them and their needs. For a car dealership, AI can lead interested buyers to different car models based on prior search behavior. For beauty retailers, chatbots can recommend compatible products for those interested in sensitive skin remedies or wedding 🧜makeup. 

How does the technology do it? While🌺 consumers are browsing, AI tools pick up their tastes based on how long they spend on certain product pages. It can answer questions about different products, giving users a side-by-side comparison between one option over another. It can also direct users to informational videos, such as demos or instruction manuals. 

Before users checkout, AI can also suggest other products that go well with the🌊 ones already in their shopping carts. Back to the beauty example, an AI-powered chatbot may suggest a Vitamin C serum to be paired with a Hyaluronic acid moisturizer or a retinol topical with a daytime sunscreen. These suggestions can be last-minute additions to a user’s cart, but add real value and serve as a guidepost for shoppers on their journeys. 

After a user completes a transaction, AI can send updates on when the package has left 𒊎the warehouse and when it is expected to be delivered. A shopper can learn of any delays in shipping before they become problematic, giving them peace of mind post-sale. To boost brand loyalty, AI-powered tools can even send friendly automatic reminders via email or text when a user may need to restock a certain product. With just a few clicks, the user can quickly and easily reorder the product. 

Real-Time Interactions 

Consumers today don’t have the patience to wait for a reply from a customer service representative via email. When they have a question or dilemma, they want it solved ASAP. A chatbot trained in conversational AI can be 🦩there 24/7, meanin💃g it can be of service no matter when a customer has a question. 

Real-time interactions are also a benefit to companies that are expanding w🌜orldwide and are looking to reach those in other parts of th🎃e world. Those in Asia, Australia, and Europe can purchase products and answer questions about your U.S.-based site while your customer service team is logged off for the night. 

The ability to have instant support can separate you from other like-minded companies tha♉t may not have conversational AI chatbots and agents built into their sites. If you’re able to take care of a customer regardless of the hour of the day, customers may be more likely to find loyalty to your brand. In terms of conversions, a chatbot that can provide recommendatio🦂ns and product solutions while a customer navigates through your offerings can increase a buyer’s shopping cart total.   

Data and Insights

As AI-powered chatbots talk with users, they are listening and learning along the way. These insights can improve future customer interactions as well as a business’s overall strategies. If consumers keep asking the same questions, a brand may decide to create a social video answering it. Or if users keep asking chatbots how this product compares to another similar product, the company may create a helpful comparison infographic. 

Conversational AI can also learn customer preferences and understand which solutions and tools are more important to shoppers. This can inform product design and sh꧅ape iterations of product SKUs. If customers keep asking the chatbot for monochromatic colors as opposed to products in bright, vibrant colors, then perhaps the brand will lean more toward neutral shades going forward. 

Another helpful benefit of conversational AI is dealing with customer frustration. While you may hope that all of your , some issues may arise. A delayed shipment or a backorder may lead to some disheartened shoppers. Chatbots can pickಌ up on a user’s sentiment and through conversational AI reply in an appropriate, empathetic manner. They can reassure the shopper that their needs are of the utmost priority and reassure them they will take care of their needs. 

These kinds of instant, heartfelt chats can help ease a shopper’s worries and allow them to feel content with the customer service they are receiving. At the samꦯe time, it can also inform your business how these types of delays should be handled and allow for strategic problem-solving. 

Staying Competitive and Current

Conversational AI is leading the way in terms of optimizing the online shopping experie🤡nce across various industries. Businesses that lean into this evolvi🍎ng technology now will benefit by seeing a boost in online conversions.