The retail industry is in a constant state of evolution, and technology is at the heart of this change. The changes to retail are not limited to the rise of ecommerce either, as physical retail stores embrace technological advancements to find new ways to appeal to wider audiences, compete with other companies, and provide exceptional customer service.

One way that retailers are looking to leverage technology is through the use of chatbots. The possible applications of chatbots for the retail industry are vast, and they have the ability to boost sales while cutting costs, making them a powerful tool for any retailer. And as chatbot technology advances with the integration of AI and machine learning, these applications are only growing in number and scope.

In this article, we look at what chatbots can offer retail businesses and how AI is making them more powerful than ever.

What are retail chatbots?

A retail chatbot is a type of chatbot software that has been designed to specifically function in the context of a retail business. This can mean it helps retail customers in some way, or helps employees with their jobs, or can be a combination of both of these things.

In general, customer-facing chatbots are the most common type of chatbots used in the retail industry. As they can answer queries from customers without the intervention of an actual staff member, these chatbots provide an easily accessible way for companies to automate key parts of the customer journey and maximize customer satisfaction.

However, while this is an important part of the way they benefit retailers, there are many other possible applications, and many of these are made possible by AI.

How are AI chatbots benefiting the retail industry?

More responsive customer service

Traditional chatbots function by working from a pre-written script, offering basic responses to a limited set of inputs from customers. For example, if a customer asks “What are your opening hours?”, the chatbot may be able to provide an appropriate answer. Unfortunately, these script-led chatbots are often very limited in what they understand and the responses they can give. When customers ask more complex questions, simple chatbots can quickly become ineffective.

AI-driven chatbots, on the other hand, are capable of understanding a wider range of queries from users and can offer far more diverse responses, making them significantly more useful and responsive to customers’ needs.

Intelligent inventory management

An often-overlooked application of AI chatbots is their use by staff for internal business functions. In the context of the retail industry, an obvious example of this is inventory management.

For example, instead of employees accessing a database and searching for information when managing inventories, a chatbot can act as a ‘middle-man’. Employees can ask questions or issue commands and an integrated AI chatbot can either answer the question, such as how much of a product is in stock, or act on a command, for instance by issuing an order for more stock.

In-store and online support

Customer service for retailers is more complicated than ever, with a combination of physical retail and online retail being integral to the business model of so many companies now. 

Chatbots can massively simplify the way that retailers manage their customer service across these mediums, providing a single point of contact for customers to access from anywhere about almost anything. This not only makes life easier for retailers and their employees, but it also helps customers get the hassle-free support they need faster.

Automatic updates and targeted promotions

Another important way that retailers can benefit from AI chatbots is via more targeted promotions and marketing. As retailers gather information about customers and their interests, it becomes possible to target them with specific promotions and updates to make them aware of things that they might like.    AI retail chatbots are the perfect way to deliver these nudges and promotions. For example, a chatbot can send personalized messages about a certain product coming into stock, a sale becoming active, or a delivery update. These types of interactions, when used effectively, can have a significant effect on customer engagement and can translate to a positive impact on sales volumes.

Improved accessibility

One of the most fundamentally important parts of customer service that businesses need to get right is ensuring that customers can always access help when they need it. With traditional customer service models, often reliant on call centers and in-person interactions, this can be difficult, as support is often limited to office hours and the capacity of staff members to interact with customers at any given time. When surges in demand occur or somebody requires support outside of normal hours, the lack of available support can reflect badly on retailers.

AI chatbots are accessible by design, bypassing the challenges posed by traditional customer service. Not only are they contactable and responsive 24/7, including public holidays, but they are also often available via multiple channels such as through websites and via email. Additionally, surges in demand do not generally affect chatbot responsiveness.

Reduced workloads for retail staff

On a basic level, AI chatbots help to automate key parts of the retail process that would otherwise need to be done by employees. Importantly, this reduces the workload on retail workers, helping to cut expenditure and free up resources for other important parts of the business such as marketing and expansion.

How can Skil.AI’s retail chatbots transform your business?

Skil.AI’s tailored retail chatbots are built using the latest in AI and machine learning technology to provide intelligent, adaptable, and personalized support to both customers and internal employees.

Our chatbots for retail are designed with accessibility as a priority, featuring multi-language support and omni-channel integration including SMS, WhatsApp, email, and more. Additionally, we pre-train all chatbots to work seamlessly with your business, your customers, and your existing IT systems to provide optimal functionality immediately.

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