Shoppers on the hunt for a new pair of shoes, clothing or makeup typically visit the mall, browse a website, search through a mobile app or pick up the phone. Now there's another option: messaging a retailer's chatbot.
"Hi, welcome to Sephora! Get makeup tips and reviews by chatting with us. Do you want to take a short quiz so I can get to know your makeup style?" a chatbot for makeup retailer Sephora asked on Kik, a messaging app that's popular with teenagers.
With a growing number of people using messaging apps, including Kik, Facebook-owned WhatsApp, Line, Snapchat and Facebook Messenger, major brands are experimenting with chatbots as a way to interact with customers in a more natural way, build a loyal following and drive sales.
Powered by artificial intelligence, a chatbot is a computer programme designed to mimic human conversations.
While chatbots have been around for years, using messaging apps to strike up a conversation with businesses - a trend that has been called "conversational commerce" - started to pick up steam in the spring. In April, Kik launched an online shop so users could find chatbots, including ones from popular brands such as Sephora and clothing retailer H&M.
Shortly after, Facebook announced at its developer conference that its messaging app will start supporting chatbots, generating more hype that the technology may replace mobile apps in the future. Online retailer Spring and 1-800-Flowers.com are among businesses featured in Facebook Messenger's bots section.
"There are definitely advantages to chatbots in terms of the depth of client engagement on a digital platform, but technology continues to evolve so we only see the opportunities growing. We always want to be where our clients are spending their time so we can be part of their beauty conversations," said Bindu Shah, vice president of digital marketing for Sephora.
Customers are already using social media sites to publicly complain or ask questions about an order or service, prompting brands to respond by asking them to send a private message.
Chatbots could change the way businesses traditionally answer customer service calls, drive sales or advertise to consumers too, experts say, but with certain questions and phrases still tripping up these robots, customers frustrated by the scripted conversations may find it faster today to just browse a website.
H&M will show shoppers a series of outfits based on answers to questions about their style, but asking the chatbot if the company has a shoe with a chunkier heel, for example, confuses the robot. "Sorry, I didn't understand, do you like this outfit?" the chatbot replied. Questions about sizing or reviews also prompt Spring's chatbot on Messenger to answer with instructions about how to use the service.
"There's so much that has yet to be done. The usage of the (messaging) apps are there, but whether or not consumers are going to adopt this type of interface for anything beyond customer service or just a quick exchange with a brand has yet to be seen," said Cathy Boyle, an analyst for eMarketer who specializes in mobile marketing and commerce. "I think that chatbots are not going to be a flash in the pan, but it's going to take some time to evolve."
In the United States, retail spending on mobile devices including smartphones and tablets is projected to grow from $US123.13 billion in 2016 to $US242.08 billion in 2020, according to eMarketer. But the amount still makes up a small part of total retail spending nationwide, totaling just 4.5 percent in 2020.
Mobile retail spending already found success in countries such as China where WeChat, a messaging app by Tencent Holdings with more than 700 million users, has become a part of online shopping. In China, retail spending on mobile devices is expected to reach $US505.74 billion this year, making up about half of retail e-commerce sales or about 10 percent of total retail spending, eMarketer estimates.
Worldwide, mobile messaging apps will be used by more than 1.6 billion people, the firm predicts.
But there could be some downsides for retailers. In a note about chatbots on Facebook Messenger, Thomas Husson, an analyst with Forrester Research, noted that marketers could also risk losing data and insights if customers move away from using their apps and websites.
"Several marketers we interviewed are wondering how such new insights will be used by Facebook moving forward and still fear losing control over their relationship with customers," he wrote.
Some businesses say they're already seeing promising results with chatbots though it's still early. Noting that chatbots could complement mobile apps, some retailers aren't worried.
"In terms of driving traffic away from our main app, we weren't concerned. If a customer chooses to use our bot and that is their preference, we are OK with that," said Tony Valado, vice president of multi-brand marketing for 1-800-Flowers.com.
He said that the company was pleased with the results on Messenger after Mother's Day, one of the most popular days for flower delivery.
On Kik, a user who starts a conversation with Sephora's chatbot on average has more than 10 exchanges per day, according to the beauty retailer.
"Success for us includes increased client engagement, follower growth, generating traffic to our site, and ultimately, sales brought in through Kik. And while we can't share specifics, we are very pleased with the results so far," Shah said.
- TNS
