Blueprint to Increase E-Commerce Conversions with AI Chatbots

1. Blueprint To Boost E-Commerce Conversions With AI Chatbots Photographic Plan To Deliver Real-Time Personalized Product Recommendations Using Chatbots And Convert More Customers

2. Introduction 03 05 The Fast Growing Need for Chatbots Current Chatbot Building Process and Mistakes 09 11 Conversational AI Chatbot Guidelines 13 Chatbot Blueprint for TOFU Customers 14 Chatbot Blueprint for MOFU Customers 15 Chatbot Blueprint for BOFU Customers 16 Chatbot Blueprint for Returning Customers 17 How to Get Started Fast

3. 1. Introduction Creating personalized experiences is a top priority for B2C marketers. 79% of digital marketers in retail are investing in personalization tools, more than any other industry. Studies also indicate that 80% of customers are more likely to purchase a product or service from a brand that provides personalized experiences. Many businesses have claimed that personalization has doubled their conversion rates. But it happens only if they do it right. Generally, most marketers implement personalization based on assumptions since they do not have accurate and curated data on their target audience. Whether it is email or paid channels, they run campaigns using general data thinking it would resonate with their audience’s needs or pains and make them purchase/convert. But, many times we see that it fails. An email body copy with just a recipient’s name next to ‘Hi/Hello’ will not do any magic with the receiver as they know it is sent to many people that way. It is a false personalization. The right personalization should go deeper by understanding your target audience’s needs, situations, behaviors, and you can identify it only if you talk to your target audiences. You need to ask the right questions, understand their intent, and send messages or recommend products that ignite their desire to buy. Chatbots can perform this task at a great level as it offers two-way, real-time conversations with your customers and has the real ability to persuade and convert. On top of all, it is easy to implement and not so expensive too. But most brands have implemented chatbots only for customer support and some of them who built for sales are not seeing good results because they offer impersonal experiences for their customers. In this ebook, we are going to teach you how to build a super-intelligent chatbot that delivers fantastic personalized experiences, increases customers engagement, and boosts conversions. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 3

4. By the end of the eBook, you will learn: How to choose the right chatbot for your e-commerce site. How to provide personalized product recommendations using chatbots How to optimize your chatbot for maximum conversions. Let’s get started. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 4

5. 2. The Fast Growing Need for Chatbots Believe it or not, the chatbot market is growing at an exponential pace. Here are some of the latest statistics on chatbots and conversational AI to help you understand it. 1.3 billion USD is the expected growth of the chatbot market size by 2025 with a compound annual growth rate of 29.7% (Cognizant) 90% of companies are planning to deploy AI within 3 years and this number is expected to grow to 40% by 2023. (Gartner) 112% is the projected value of chatbot E-commerce transactions by 2023. (Juniper Research) 20 million US dollars is saved by businesses using chatbots globally. (Juniper Research) The phenomenal growth of chatbots is attributed to its ability to communicate with website visitors 24/7. More and more businesses are realizing its capability today. All the marketing efforts go in vain if you don’t engage visitors better on your website and make them convert. Since many e-commerce sites are designed in a conventional way with a lot of texts, images, products, categories, and links, getting the right information is quite a task for the customers and they soon disengage. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 5

6. Imagine the below scenario from your customer’s point of view: Your customer has a problem and need to fix soon Your SEO efforts are good and your website appears on the top They search for a solution on the search engines Customer visit your site and you have mentioned everything about your product But customers are not sure if your product can solve their problem But, somehow they get distracted (maybe its a phone call or an urgent task) and they close the tab They keep browsing your site for the right information to get the trust All your efforts go in vain Studies show that the average time visitor spends on a site is 45 seconds! If they couldn’t find the information they are looking for in that time frame, they will close the browser and move to your competitors. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 6

7. Now, imagine this scenario: Your customer has a problem and need to fix soon Your SEO efforts are good and your website appears on the top They search for a solution on the search engines Customer visit your site and you have mentioned everything about your product Immediately a product recommendation chatbot pops up and asks if it can assist them You customers say ‘yes’ and it asks a series of questions, understands their needs, recommends the right product in few seconds Your customer is happy as they got the information and trust and adds the product to the cart Viola, you won a sale. All your efforts paid off. Having a product recommendation chatbot on your site is like having your brick-and-mortar store salesperson on your site. They welcome the customers, ask the right questions, and show the right product that helps your customers make faster purchase decisions. Perhaps, product recommendation chatbots do a few things more than your salesperson. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 7

8. It is available even during non-business hours Can handle ‘n’ number of customers at the same time Can communicate in different languages Remember the returning customers and serves them better Answers common questions without support agent’s help Now, you can understand why product recommendation chatbots are in great demand. More and more businesses are implementing to make their website conversational, improve the user experience, make the user’s life easier, make users feel understood, and convert them efficiently. However, the problem is not all businesses are building it right. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 8

9. 3. Current Chatbot Building Process and Mistakes Okay, you realized the need to have a chatbot on your website and start to think about building one. How do you get started? A. Do you search on the internet, find a chatbot development company, and ask for quotes? or B. Do you work out a plan on what you want to achieve with your chatbot, how it should interact with your customers, what level of personalization you want to provide, and then search for a chatbot developer? Chatbot building should begin with the right mindset As mentioned earlier, a chatbot is like having a virtual salesperson on your site. It should strike human-like conversations and make the user feel comfortable, engaged, and understood. It has a lot to do with the psychological aspects. Only then you will be able to achieve the results you want. In short, you need to have the right mindset before building one. Building a chatbot is like training a new sales rep. It should converse in your brand’s tone. Listen to your customers. Ask the right questions. Tailor the experience. But, what happens in most cases is, when companies decide to implement chatbots, they straight away go to a chatbot development company, read some of the attention-grabbing content where they claim that they helped so-and-so companies to improve their conversion rate by ‘X percent, increased sales by ‘X’ percent, reduced costs by ‘X’ percent and so on. You might immediately get excited by those numbers, claims, etc., and start purchasing a similar chatbot for your site only to realize later that it is not providing desired results. You might even go to an extent of saying that the product is useless. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 9

10. Every business is unique and you cannot build a chatbot just like others. You need to give it a unique mind and personality so that it interacts with your users effectively and move them down the funnel faster. Let us show you some examples of how to have a unique mind for chatbots below: The Funny Chatbot The Casual Chatbot Knock, Knock Hi pal, I’m idle and bored. Allow me to help you. Hi there Want to know something cool? The Serious/Respectful Chatbot The Intervening Chatbot Hi, may I help you with something? Hey there, Can I ask you a quick question? The Enthusiastic Chatbot The Lead Generation Chatbot Hey there Have any questions? I can book a meeting with sales rep now. Hey, quick question! What would you do with 40% more leads? As you might have noticed in the above-mentioned examples, with the very first conversation, users can understand what type of interaction they are going to have. A chatbot personality reflects your brand’s personality. You can have unique avatars, names, a tone of voice, and even demonstrate emotions to deliver a human-like experience for your customers. Chatbot personality and mind play an important role in achieving your goals. In fact, it can make or break the deal. The best way to build is by following the conversational UX guidelines and bot guidelines. Let’s look at how. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 10

11. Conversational AI Chatbot Guidelines Conversational AI Chatbot - What does it mean? Unlike rule-based chatbots that work on pre-defined rules, conversational chatbot or AI chatbot is programmed with NLP (Natural Language Processing) and ML (Machine Learning) technologies to understand your customer’s inputs better (even if there are typos and complex questions) and carry out human-like conversations with your customers. They ask the right questions, learn their needs, and personalize the experience in real-time. Only with conversational AI chatbots, you can deliver hyper-personalized experiences for your customers. Simply because it has a mind to learn and serve. But to build a successful conversational AI chatbot, you need to follow conversational UX principles and bot guidelines. Learn it from the table below. 11 Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io

12. Conversational UX Principles Bot Guidelines Define the chatbot’s goal clearly. (Conversion/CTA) The chatbot should have a name, purpose, and persona. Make the chatbot ask one question at a time and don’t give cognitive load to users. Make it skilled in a particular domain and inform users upfront while they start the conversation. Anticipate user needs and respond proactively. Chatbots should make clever conversations and build trust with the users. Encourage forward momentum/progression. The chatbot should learn every non-programmed command when it crashes by re-programming itself. Reduce the number of steps for users to find the information on chatbots. Chatbots must provide business intelligence by performing sentiment analysis on user interactions. Once you are thru with the above-mentioned guidelines and principles, you are ready to build the chatbot that provides hyper-personalized experiences. To build the personalized chatbot easier, we have classified it into three categories according to your customer’s buying cycle. Let’s look at it one by one. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 12

13. 5. Chatbot Blueprint for TOFU Customers 96% of customers visiting your site are not ready to buy. They can be categorized as the Top of the Funnel (TOFU) customers. Customers at this stage usually research your site to understand whether you can solve their problems. So in this stage, all the chatbot needs to do is Answer customers questions Address their pain points Establish a groundwork that your brand can solve customer’s problem Increasing brand awareness and engaging customers should be the main focus of the chatbot in this stage. Here are some examples of the tasks your chatbots can do here: Share a link to the blog post Share how-to-videos Here’s a link to a blog post that explains what you should when you have dry skin. Here’s a step-by-step explainer video on how to get rid of dry skin. Have a watch. loreal.co.uk/blogs/how-to-get-rid-of-dry-s kin Show press releases and news features Route to social media channels L’oreal’s new skin care formula is approved by world’s leading dermatologists. Read the press release here. L’oreal fans are sharing great reviews on the dry skin care product in our Facebook page. Check out now. loreal.co.uk/press-release/successful-form ula-to-overcome-dry-skin facebook.com/loreal-uk The goal of the top of the funnel is to collect email id, phone numbers, or make customers subscribe to your newsletters to nurture. You need to build the workflows on your chatbot in such a way that it completes this goal. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 13

14. 6. Chatbot Blueprint for MOFU Customers The customers who are in the Middle of the Funnel (MOFU) are those who know who you are, what you are offering, and are evaluating your product. This is a very crucial phase as the potential buyer needs to be nurtured well to move down the funnel. Personalization plays a huge role in this phase. If the chatbot already collected the email id or phone number of your customers, you can feed that data into your CRM and start marketing automation. You can send relevant content and offers via email or text messages and persuade them to purchase. However, if the customer revisits your site, the chatbot can send personalized messages and nurture them more. Here are some examples of the tasks your chatbots can do here: 1. If the visitor is viewing the product/category page 2. If the visitor is viewing the pricing page Hi, looks like you are viewing the product page. Here’s an useful guide that highlights the most valuable features of the product. Hi, are you checkout the prices? You can get 15% discount if you purchase double pack. CLAIM IT BEFORE THE STOCKS LAST loreal.co.uk/product-guide/dry-skin-care-formula 3. If the visitor is checking out customer reviews Hi, checking out the reviews? Here’s the link through case studies. loreal.co.uk/case-studies/dry-skin-care-cream Educating your customers with the right information and building trust are the key tasks of the middle of the funnel personalized chatbots. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 14

15. 7. Chatbot Blueprint for BOFU Customers Bottom of the Funnel (BOFU) customers are one step closer to sale. They have almost decided to go ahead with your product and the chatbot’s goal is to accelerate the sale by positioning your brand/product as superior to others and helping them overcome the hurdles that stand in their way. Here are some examples of the tasks your chatbots can do here: 1. Persuade with a stunning deal 2. Recover abandoned carts Hey! I see that you left your cart with some items in it. Hi there, I see you are checkout the dry skin care cream. We are offering 12% discount. I’m able to get you a special one time offer if you purchase now. Would you like that? Use this coupon DRYSKINCREAM12 while you are checking out. You will get instant discount. 3. Drive more revenue with upsells and cross-sells Hi, Why don’t you try L’oreal body wash along with dry skin care cream? It will give faster results. I can instantly save you $5 if you buy both the products. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 15

16. 8. Chatbot Blueprint for Returning Customers E-commerce businesses having 25-30% of returning customers is a good benchmark. However, 61% of retail companies cite customer retention as their biggest challenge. So building customer loyalty is very important for your business to thrive in the longer run. AI chatbots have the capability to remember your returning customers, know their previous actions, and easily pave the way for re-orders, re-subscription, and notify deals on their favorite products or highlight the ongoing sale. Here are some examples of the tasks your chatbots can do here: Upgrade to paid subscriptions Mention about ongoing sale Hi (Customer name), thanks for stopping by. Would you like to checkout our ongoing deals on the dry skin care cream? Hi (Customer name), your free trial ends soon, would you like to upgrade? I can get you 10% discount. Sell customer loyalty card One-click reorder Hi (Customer name), we are offering loyalty programs for privileged customers. Hi (Customer name), do you want to re-order your last item? Avail it now and get discounts for next one year. I can help you do it instantly. Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 16

17. 9. How to Get Started Fast We live in a world where every common man is receiving personalized experiences - thanks to companies like Amazon, Netflix, etc., Customers are expecting personalized experiences from almost every company and studies show that 49% of buyers have made impulse purchases after receiving a more personalized experience. Chatbots are an easy way to put personalized experiences into action on your website. Personalized Product Recommendation Chatbots Guarantee More Sales and Conversions. However, to implement it, you need a qualified chatbot developer. Having built high-performing e-commerce sites for 10+ years, we have launched a super-intelligent personalized product recommendation chatbot to help brands make more conversions and sales. Today, RoundView is serving 200+ companies worldwide. Every chatbot we build has a unique personality and mind and has a high success rate in achieving the goals/tasks. With this ebook, you would have understood our capabilities. Contact Us To Help You Build Amazing Personalized AI Chatbots If you have more questions or want to see a demo, send us an email at support@roundview.io or call us at 470-236-0047 to get an immediate response. Alternatively, you can book a meeting with us on our calendar. Schedule a Meeting Blueprint To Boost E-Commerce Conversions With AI Chatbots | www.roundview.io | support@roundview.io 17

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