Customer service has always been a significant cost for ecommerce businesses, but what if we told you that it could be a revenue-driver instead?
Today, great customer service is more than just addressing customer issues and complaints, but also creating personalized experiences that drive loyalty and generate revenue.
Businesses that don’t prioritize customer service risk losing customers and missing out on revenue opportunities. With this in mind, brands understand that they must embrace technology to stay competitive.
CX automation and conversational apps play a critical role in improving CS by providing personalized, frictionless support. In this article, we’ll explore how ecommerce businesses can use CS technology to boost revenue, and share insights from industry experts.
Automate to elevate
Automating routine questions is one of the first places most companies look to reduce costs in customer service. However, brands need to start looking at automation as a way to improve customer service, too.
For example, Sam Underwood, ecommerce consultant and founder of Bingo Card Creator, spoke with us about how his ecommerce brand saw a 60% increase in revenue growth by adapting to technological changes in customer service.
“We've recently started using chatbots and AI-powered tools to handle routine queries, freeing up our human staff to focus on more complex issues. In my experience, providing exceptional customer service has not only helped us retain customers but also attract new ones through positive word of mouth. We've seen a direct correlation between our customer service efforts and our revenue growth.”
One of the main reasons that ecommerce brands with strong digital customer service and omnichannel support see higher customer satisfaction rates, is due to the growing popularity of conversation customer support.
Meet customers on the channels they prefer
Every year, more customers want to communicate with brands via messaging. This preference out-ranks other channels like SMS, phone or email, by a substantial margin.
It’s easy to see why messaging channels such as WhatsApp are so popular with consumers; they are already accustomed to using these channels in their day-to-day lives. This familiarity means that they don’t need to learn new platforms or download more apps, and makes it easier for customers to engage with brands.
Since conversational apps also enable real-time and asynchronous communication, this gives customers the flexibility to send messages at their convenience, and receive quicker replies and resolutions to their inquiries. In fact, 69% of consumers prefer to use chatbots because they provide instant responses.
Ahmet Durmusoglu, founder of Turkey's first diamond ecommerce brand, Eros Pırlanta, spoke with us about how opening up a messaging channel has allowed them to better meet customer expectations.
“We found that our customers were increasingly expecting a strong online presence and 24/7 customer service support, so the chatbot was implemented to help provide this level of service efficiently and cost-effectively.”
Conversational apps in action
In this demo we can see some of the most common customer queries about sizing, stock checking, purchasing and more, can be automated with a conversational app.
We can also see that these conversational apps use rich elements which go beyond text-only chatbots. The Interactive features such multimedia messages, images, buttons and links, help create a more engaging experience for customers.
In a UX study on text-only vs graphical chatbots by Science Direct, all participants reported that the practical aspects of button interaction enabled easier, more efficient interactions, and strengthened their user experience.
Personalize experiences with analytics and machine learning
Another great way that customer service can drive revenue is through analytics.
“We also use AI-powered analytics platforms to gain insights from customer interactions and better understand our customers’ needs.” - Ahmet Durmusoglu
Analyzing customer data allows ecommerce businesses to predict customer needs, preferences, and behavior. This can help proactively address the most common customer issues before they become complaints.
Machine learning algorithms can also use these analytics to offer your customers product recommendations that are tailored specifically to them. Providing this personalized experience has been shown to increase both customer satisfaction and loyalty.
A recent study of 1,000 US adults by Epsilon and GBH Insights found that 80% of respondents want personalization from retailers. In fact, personalization can even be referred to as a “hygiene factor. This means that it is something customers take for granted, but if a retailer gets it wrong, they may take their custom to a competitor.
Reduce cart abandonment and increase revenue
Data analytics and personalization also allow for more cross-selling and upselling opportunities with existing customers. By analyzing customer behavior and shopping patterns, you can then recommend products that customers have already viewed, offer discounts, and in turn, reduce your cart abandonment rate.
Research from Baymard Institute shows that 69.82% of online shopping carts are abandoned. So for every ten customers who add an item from your store to their cart, up to seven of them will leave without completing their purchase.
Other ways that automated customer service can help regain revenue lost to cart abandonment, is with exit-intent popups or email automation. By offering customers a discount or other incentive to complete their purchase before leaving the website, you can encourage them to complete their purchase, therefore regaining their custom.
Additionally, if you provide live support through a chatbot or conversational app, you can address customer concerns in real-time to resolve any doubts about the product before purchasing. Not only does this reduce cart abandonment rates, but it also increases customer satisfaction scores.
Go beyond text-only automation
Repetitive tasks such as order tracking and making an exchange or return can all be automated using conversational AI technology. This allows for faster response times and cost savings, which in turn lead to increased efficiency in your CS time and increased revenue for your ecommerce business.
Daniel Climans, Senior Marketing Director at Sticker You, gave us some insight on their experience automating CS tasks using an AI chatbot.
“AI in the form of chatbots is a helpful tool when it comes to adapting to customer service changes. Chatbots are great for fielding questions from customers via our website, or even social media. They provide accurate information which can help someone in a matter of seconds, which makes for a better customer experience.”
Start driving revenue through customer service
When speaking with Ahmet Durmusoglu, he also shared with us why he now views customer service as an essential driver of new revenue within his business.
“Our investments in technology have allowed us to provide better customer service at a lower cost, resulting in more satisfied customers and more loyal shoppers. We are confident that these efforts will continue to drive growth for our organization in the years to come. We believe that investing in technology is the key to staying ahead of our competition and providing our customers with an exceptional experience.”
By embracing technological changes, automating customer experience and utilizing conversational apps, you too can start providing your customers with smooth, seamless and satisfying experiences that will blow your competitors out of the water. To start automating customer service for your business, you can book a demo with us today.