Product Advice: How Chatbots Help Customers Make a Purchase

Why product advice is important

“Would I better use this vacuum cleaner robot now, or the other brand? “The immense range of products on the Internet can quickly become overwhelming, which is why targeted product advice is becoming increasingly important for many online shoppers.

Such advice helps to understand complex products and tailors recommendations to individual customer needs. Competent and honest product advice also strengthens trust in the respective brand. It is therefore central to a positive shopping experience.

But how can companies ensure that they offer their customers effective advice that is both informative and accessible? Here come in e-commerce chatbots In game — keyword guided selling.‍

What is guided selling?

Guided selling (German: “guided sales”) is an approach in which customers are actively guided through the buying process to find the product that is best for them. Software solutions and innovative technologies such as chatbots are used, which are artificial intelligence be supported.

These systems ask specific questions to understand the needs of customers and then recommend products to them that meet their needs. Through the use of algorithms and machine learning, digital assistants get better and better over time by learning from past interactions and continuously optimizing their recommendations.‍

How does product advice work with chatbots?

What exactly can product advice from a chatbot look like? Let's take a look at the process:

• The customer calls up the chatbot on the company's website or contacts it via a messaging platform such as Facebook Messenger or WhatsApp.
• The chatbot asks specific questions to understand the user's needs and preferences. These questions can relate to various aspects, such as the intended use of the product, the budget, or specific product features that are important.
• Based on the information provided by the customer, the chatbot analyses the available products and then makes tailor-made recommendations. In doing so, he takes into account factors such as product availability, customer reviews and relevant special offers.
• The chatbot is available to the online shopper throughout the consultation process and can provide additional information, answer questions or forward them to a human employee if necessary.
• After the customer has viewed the recommended products and is ready to make a purchase decision, the chatbot can support the purchase process, for example by adding the product to the shopping cart or helping to process payments.

Through this efficient and interactive process, product advice through chatbots not only offers a seamless and user-friendly experience. Users also find the right products that meet their needs faster and easier.

Possible uses of chatbots in product consulting

Chatbots offer a wide range of uses to support customers in various phases of the buying process and to ensure optimal product advice.

Interactive product recommendation

A central area of application of chatbots consists of making interactive product recommendations. They guide customers through a series of questions that identify their needs and wants. Based on the information collected, the chatbot then suggests the perfect product. Quizzes are a popular form. For example, the chatbot from the company “Lockenbox” asks about hair condition and other details in the “curl quiz” in order to then put together the perfect care routine for users.

Answering customer questions

Chatbots can also be used to answer various customer questions, from product features and specifications to delivery and payment options. For example, amateur gardeners looking for a new lawnmower could ask a chatbot what the difference between two models is or which lawnmower is better suited for a large garden. In this way, they can make an informed purchase decision.

Personalized advice

Another area of application is personalized advice. Chatbots use information about the customer's past purchases, searches, or interactions with the webpage to make recommendations and personalize the shopping experience Based on previous shopping behavior, a chatbot from a fashion online shop can suggest garments that match the style of the person looking for it.

Chatbots as product advisors: The 9 biggest benefits

As a product consultant, chatbots offer a variety of benefits that can help increase efficiency, customer satisfaction to improve and strengthen the competitiveness of companies:

• Time savings: Chatbots enable buyers to get information quickly and efficiently without having to wait a long time for an answer.
• 24/7 availability: They offer 24/7 support — ideal for companies with customers in different time zones or for consumers who want to shop and receive advice outside regular business hours.
• Conversion rate: Advice tailored to users has the potential to significantly boost the conversion rate.
• scalability: Chatbots process high volumes of requests without loss of quality, even during peak loads, such as during the Christmas season or on Black Friday.
• Consistent advice: Regardless of the time of day or the number of inquiries — the innovative technology is programmed to always provide consistently high quality advice.
• Customer satisfaction and retention: Quick, professional and personalized advice through chatbots leads to satisfied and loyal customers.
• Data analysis: Chatbots collect valuable data about customer interactions, which companies can use to optimize products and services.
• Multi-channel support: The digital consultants can be used on various platforms. In this way, customers receive flexible advice via their preferred channel.
• Reduced costs: Compared to human employees, chatbots are significantly more cost-effective — they do not cause overtime or additional personnel costs.
  

Risks and challenges of chatbots in product consulting

Chatbots are an innovative technology, but despite their advanced capabilities, they're not immune from mistakes. These can range from simple misunderstandings to serious data breaches:

Privacy and security

‍Data breaches are at the forefront of challenges when it comes to using chatbots. Collecting and storing sensitive customer data opens the door for potential cyber attacks and data leaks. In order not to jeopardize user trust, companies must ensure that their chatbots consistently comply with the General Data Protection Regulation (GDPR) and are protected by regular security updates and penetration tests. Here are some tips for a GDPR-compliant chatbot:‍

Misinformation

‍Another hurdle is the accuracy of the information provided. Incorrect product information can not only lead to customer dissatisfaction, but also damage a company's image. ChatGPT, for example, often plays fictional information. It is therefore essential that chatbots are equipped with comprehensive and up-to-date product knowledge and continuously learn to provide correct information.‍

Abusive language and inappropriate content

‍Chatbots can also become unintentionally abusive. For example, Microsoft's co-pilot or the NEDA chatbot have already delivered inappropriate content. Such incidents can scare off customers and undermine a company's credibility in the long term. Algorithms should therefore be designed in such a way that they react context-sensitively and ensure ethical communication.

In order to avoid these risks, it is essential that companies invest in controlled AI technologies that are GDPR-compliant. The chatbot should also communicate transparently that it is a technology and the possibility of human intervention (Human Take-Over) provide. With moinAI, you are on the safe side in this regard: GDPR compliance, the option of human chatbot handover and controlled generative AI We have all of them and have high priority. You can find out more about data protection and chatbots on our GDPR page.

And last but not least, not all chatbots are the same: Companies are well advised to make sure that they have the right chatbot type select for your specific needs. With these measures, the benefits of chatbots in product advice can be fully exploited while ensuring customer satisfaction and security.

The 8 most important tips for using chatbots as product advisors

Would you like to use a chatbot in product advice to offer your customers an improved shopping experience? Here are a few important tips to keep in mind:

• Define clear goals for using chatbots and understand their role in the product advisory process to improve customer experience.
• Make the chatbot user-friendly and ensure intuitive interaction. Avoid complex language and provide clear instructions for effective use.
• Collect feedback from your online shoppers on an ongoing basis. Develop the chatbot regularly to meet changing requirements.
• Give customers the opportunity for human support when the bot doesn't know what to do anymore — especially with complex inquiries or complaints.
• Pay attention Data protection- and security standards as well as transparent use of customer data to gain trust.
• Make sure that the chatbot communicates clearly and openly points out its capabilities and limits. Avoid unclear answers or promises to avoid confusion or frustration among potential buyers.
• Invest time and resources in training your chatbot to ensure that it works effectively and efficiently.
• Keep the chatbot's content regularly updated to ensure that customers always get the right information.‍

Conclusion

Overall, chatbots offer an innovative and effective solution for companies to improve their product advice and optimize the shopping experience for customers. Chatbots are available 24/7, provide consistent advice and provide personalized recommendations. In this way, digital consultants help to increase customer satisfaction, which efficiency to increase and the Retention of customers to strengthen the brand. With the right implementation and continuous optimization, chatbots can be a valuable addition to companies that want to offer their customers a world-class consulting experience.