Generative AI Chatbot in eCommerce: Use Cases, Benefits, and Statistics Behind

Consumer expectations are evolving, and running a successful eCommerce business demands a lot more than it did a few years ago. Customers are more informed and want a fast, seamless, and smart user interface. To deliver on these new customer demands, eCommerce brands are using AI-driven processes to deliver personalized experiences. And Conversational AI with embedded Generative AI techniques is becoming the most effective of them all.

Harnessing Generative AI in the form of improving Conversational AI text chatbots and voice bots enables eCommerce companies to create a personalized journey, respond to queries faster, deploy Points of Sale (PoS) in popular messaging apps, and more.

Statistics of Conversational AI & Generative AI in eCommerce

  • Conversational AI is responsible for a 67% increase in eCommerce sales.
  • AI chatbots will account for $112 billion in retail sales by 2023. Retailers that utilize conversational commerce effectively are experiencing annual revenue growth between 7 to 25%. Check out the full list of possibilities of Conversational Commerce (chatbots in eCommerce) for businesses.
  • eCommerce businesses leveraging chatbots for business communication have an average open rate of 85% and a click-through rate (CTR) of 40% compared to the (23% open rate and 3% CTR of email).
  • Chatbots help customers save time and find what they’re looking for. 73% of customers choose self-service features such as chatbots over live agent (human) chat to save over 10 minutes.
  • Generative AI is set to have far-reaching implications for the $5.920 trillion global eCommerce sector.
  • In 2023, a survey was conducted among professionals in the United States, which revealed that 37% of individuals employed in the advertising or marketing sector had utilized artificial intelligence (AI) to aid in their work-related responsibilities.

Top Generative AI Chatbot Use Cases in eCommerce

This article has delved into the primary use cases of Generative AI chatbots in eCommerce, as well as the benefits of integrating these chatbots.

Generative AI eCommerce Chatbot Use Cases

Generative AI Chatbot Use Case in eCommerce #1. Personalized product recommendations

According to the research, only personalized messaging will be engaging for 72% of customers. Generative AI can analyze customer data to create personalized product recommendations for individual customers. These recommendations can be sent as product cards via an eCommerce AI chatbot. This can help increase sales by providing customers with tailored product suggestions that are most likely to interest them and fit their needs. For example, if a customer needs help finding something to do, cook, or wear, this approach can be very effective.

Generative AI Chatbot Use Case in eCommerce #2. Upselling/cross-selling

Generative AI has the capability to enhance the shopping experience for customers by analyzing their current orders and suggesting additional items that complement their purchases. This can be achieved through the use of an AI chatbot that engages with the customer in a personalized way.

For example, when a customer adds multiple items to their cart, the chatbot can recommend other products that have been frequently purchased together with those items, providing a more tailored and convenient shopping experience. Generative AI e-commerce chatbot can even use language similar to a human sales associate, such as “I see that you’ve added product X to your cart. Did you know that many customers also bought product Y along with it? Would you like to add it to your order?” This personalized approach can help customers discover new products that they might be interested in and make additional purchases, ultimately leading to increased sales for the business. Business leaders, as reported by Forbes, claim that chatbots have, on average, increased sales by 67%. Check out the list of top eCommerce chatbot examples that are changing the way businesses communicate with customers.

Featured resources: Scale Your Customer Support with a Personalized approach in Conversational AI

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Generative AI Chatbot Use Case in eCommerce #3. Customer reviews

BrightLocal’s online review statistics reveal that almost half (49%) of all consumers consider online reviews to be as trustworthy as personal recommendations. This highlights the growing importance of online reviews as a source of information for consumers in making purchasing decisions.

Generative AI has the ability to gather reviews from various domains outside of the current website or platform, such as Amazon or Wayfair. This can eliminate the need for customers to research multiple websites to understand the quality and specifications of a product. Instead, they can simply ask a Generative AI-based eCommerce chatbot for information, and the chatbot will provide all of the reviews and the average rating for the item. This streamlined approach can help customers make informed purchasing decisions more quickly and easily.

Generative AI Chatbot Use Case in eCommerce #4. Price matching

Multichannel sellers often offer similar products on the same selling platform. With Generative AI, an AI-powered eCommerce chatbot can provide users with a prompt to pull in all available prices for a product of interest and offer a comparison result. This feature can help users make informed purchasing decisions by showing them the range of prices for a given product across different sellers. By providing this level of transparency and convenience, businesses can enhance the shopping experience for their customers and increase sales.

Read also: Difference between Multichannel and Omnichannel Customer Experience.

Generative AI Chatbot Use Case in eCommerce #5. Product search

Generative AI can be used to help identify a customer’s intended product even when the correct name is not provided. For example, a customer could make a request to an AI-powered eCommerce chatbot like, “Find me a product that can do this, looks like that, and is priced around this amount.” Furthermore, Generative AI for eCommerce chatbots provides the ability to search for products based on broad criteria such as a style, such as bohemian.

With Generative AI, the chatbot can use natural language processing to understand the customer’s request and generate a list of product recommendations that fit their criteria. This streamlined approach can help customers find what they’re looking for more easily and efficiently.

Generative AI Chatbot Use Case in eCommerce #6. Product stock or type notifications

An AI-powered eCommerce chatbot can share information about low-stock items and proactively notify users about the top/most purchased items. By enabling this feature, the notifications would be dynamic and updated on a weekly basis rather than relying on a static “best sellers” filter on the website. If you have interacted with an AI eCommerce chatbot and opted in for these notifications, you can receive personalized and relevant updates from Generative AI about products that may interest you.

Generative AI Chatbot Use Case in eCommerce #7. Book across chain locations

When booking an appointment or making a reservation, such as for a haircut, fitness class, or restaurant, at a business with multiple locations, AI can provide openings for each location, giving the user the option to choose from multiple locations. This is particularly useful for users who prioritize date and time over location. The flexibility provided by booking chatbots has resulted in significant conversion rates. The booking chatbot developed by Master of Code for Aveda has led to a 7.67x increase in average weekly bookings since its launch.

Featured resources: Complete Guide to Conversational AI in CX

Generative AI Chatbot Use Case in eCommerce #8. Price history

Generative AI has the ability to incorporate pricing history into eCommerce chatbots to influence users to make purchases. This can be achieved by displaying messages such as “lowest price in # of days,” which can encourage users to take advantage of the current pricing and make a purchase. By utilizing pricing history, chatbots can provide users with real-time updates and personalized recommendations, leading to increased engagement and sales.

Benefits of adding Generative AI to your existing chatbot for eCommerce

Instead of developing a new Generative AI chatbot from scratch, Master of Code recommends enhancing an existing chatbot (if you have one) with this technology. However, if you don’t have an existing chatbot, Master of Code can suggest developing a Conversational AI chatbot specifically designed for eCommerce. This approach allows for more efficient and cost-effective implementation of Generative AI technology while still providing the benefits of a personalized and engaging chatbot experience for eCommerce customers.

Benefits of Generative AI in eCommerce Chatbot

Benefits of Generative AI in eCommerce Chatbots for business owners

  1. Enhanced Customer Experience: With personalized messaging, contextual search results, custom recommendations, and improved loyalty programs, AI-powered eCommerce chatbots offer a highly personalized experience that improves customer satisfaction and loyalty.
  2. Increased sales and customer loyalty: Embedded Generative AI techniques enable conversational AI chatbots to offer advanced order management capabilities, ensuring accurate and efficient order processing.
  3. Convenient Shopping Experience: Customers can easily find the right product, make secure purchases, and track their orders through a natural language interface, offering a convenient and engaging shopping experience that increases the likelihood of repeat business.
  4. Targeted Promotions and Offers: AI-powered eCommerce chatbots can deliver highly targeted seasonal offers and educate customers about current and upcoming promotions, increasing sales and revenue for eCommerce businesses.
  5. Cost-Effective Solution: Conversational AI chatbots are a cost-effective solution for providing personalized experiences and advanced order management capabilities, enabling eCommerce companies to offer high-quality service at scale.

Wrapping up

The eCommerce industry continues to innovate and deploy cutting-edge consumer-facing technologies, with Generative AI emerging as a key trend. As a leader in the field of Conversational AI, Master of Code partners with numerous service providers to provide innovative and forward-thinking solutions that enhance the customer experience and streamline business operations.

Submit a request for a Proof of Concept (POC)! Explore the advantages of Generative AI in your company. POC will be done in 2 weeks to validate the business idea! CONTACT US

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Generative AI Chatbot in eCommerce: Use Cases, Benefits, and Statistics Behind was originally published in Chatbots Life on Medium, where people are continuing the conversation by highlighting and responding to this story.