Chatbots are powerful tools to improve efficiency and drive down costs. When used in isolation it can mean lost opportunities between your company and the customer. In this piece, we look toward chatbots and why video commerce can help achieve conversion goals and customer success.
What to expect
- Why are chatbots needed?
- Why chatbots are not the full answer to customer success
- Improve conversions and customer service with video commerce
Why are Chatbots Needed?
It is estimated that 85% of customer interaction will be fuelled from chatbots by the end of 2021. Due to app fatigue, users are turning away from mobile apps (20% fewer are downloading them) and are looking toward 24/7 chatbots to receive immediate information and guidance.
Chatbots are great for answering first-level questions, however, the limited AI means if a question goes on a tangent against their predetermined path, the likely response a consumer will get is, “oops sorry, I didn’t understand!”
AI Chatbot companies are investing heavily in conversational commerce, where they understand conversational human language using NLP (natural learning processes). But is this enough?
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Why Chatbots Should Work Alongside Video Commerce
As previously mentioned, the chatbot is an efficient tool to reduce operational costs and drive efficiency, however, losing that human element can also mean a lost opportunity for a loyal and meaningful customer.
Without Empathy and Rapport, There’s Little Room to Engage
Chatbots work well for quick-time queries, but are they able to offer a more personable experience?
H&M introduced a chatbot function on KiK, which allowed outfit recommendations to be made based on pre-set questions when asked to the customer.
The customer can then purchase the suggested items on the H&M website.
Although an innovative tool and the first of its kind in the retail space, were there lost opportunities?
If there was a video call interaction, the expert could build rapport, showcase several items and even talk about purchasing similar products from H&M.
Also, the expert can respond to additional needs in real-time.
For example, the customer may suggest they work from home, therefore needing suitable outfits to accompany that. And it doesn’t stop there. The expert can then cross-sell office furniture, whilst addressing the needs of the customer.
Conversations create relationships. Continuous dialogue helps identify customer needs and the ability to act upon it immediately.
Improve Customer Service and Conversions with Video Commerce
Without human interaction, brands cannot engage with consumers on a personable level.
Nevertheless, video commerce can act as a crucial tool for effective engagement.
Although chatbots can drive some consideration, consumers rely on video to reinforce their purchasing behaviour. Here are some interesting figures:
- 62% of consumers watch product review videos before making a purchase.
- 84% who watched a product video then made a purchase.
- 56% of customers believe a company should include video content on its website.
In contrast, chatbots excel when answering simple questions regarding the operations of a business. Whereas video commerce adds a layer of dimension to the expert and customer.
What can your Business do with Video Commerce?
Typically, a website’s purpose is to showcase products and services to the customer.
Features such as chatbots help improve customer satisfaction and can begin to navigate them through the sales funnel. However, combining video commerce can offer a holistic customer shopping experience, which is bound to make an impact.
Let’s read more about one to one and one to many video formats.
One to One
A query can escalate from a chatbot to video format if a consumer has addressed intent in purchasing an item. One-to-one can offer a personable service between the expert and the customer. Other reasons why it works so well are:
- Needs and wants are identified
- Upsell and cross-sell products
- Build a loyal and high-value customer
- Drive higher conversions
One to Many
Chatbots are great for dealing with high volumes of traffic. One to many is the equivalent of that. By using data-driven marketing, retailers can target customers with upcoming one-to-many segments. It also has a number of benefits too:
- Engage with a large number of high intent consumers
- Enhance brand by showcasing high-quality items which the audience can then question
- Narrate a compelling story for your product
- Although less personable, highly entertainable for the audience
- Ability to schedule in one-to-one appointments
Scheduling virtual appointments provide control to the expert and customer. If you are a business with a small team, sometimes escalating from chatbot to human interaction is not available in real-time. Virtual appointments also provide transparency and consistent messaging through the sales funnel.
Adding video commerce to your customer journey adds a wealth of value to your business. In combination with driving revenue, conversions and brand enhancement it can also create and develop high-value customers.
Chatbots when used in moderation are great for managing micro needs, however, one-to-one and one-to-many video can enable a far more meaningful and seamless customer journey. Most importantly, video commerce establishes trust and gives your business that competitive edge.
Request for a demo
To find out more about how you can use video commerce to increase sales and customer success, book a free demo today.