Chatbot

What is a chatbot?

A chatbot is a software program that simulates a conversation with a human user via text or speech. In an online store context, chatbots are typically used as a chat window in the corner of the page where customers can ask questions and receive automated responses.

Modern chatbots range from simple rule-based systems (“if the customer asks about delivery, display this text”) to advanced AI-powered bots that understand natural language and can conduct complex conversations.

Types of Chatbots

Rule-based chatbots

Follow predefined decision flows with fixed responses. The customer chooses from predefined options (“Questions about delivery,” “Questions about returns,” etc.). Simple to set up, but limited in their ability to understand freely phrased questions.

AI-based chatbots

Use machine learning and NLP (Natural Language Processing) to understand and answer open-ended questions. Can handle complex conversations and learn over time from customer interactions. Require more setup and ongoing optimization.

Hybrid chatbots

Combine automated responses with the option to escalate to a human agent when the bot cannot help. The best of both worlds for most online stores.

What can a chatbot help with?

• FAQ responses: Automatically answer frequently asked questions about delivery, returns, payment, and business hours.
• Product guidance: Help customers find the right product based on their needs (“I’m looking for running shoes for asphalt”).
• Order status: Let customers check the status of their order without contacting customer service.
• Size guide: Interactive sizing guide for clothing and shoe stores.
• Lead Generation: Collect contact information and newsletter sign-ups through conversations.
• Complaints: Receive and log complaints with relevant information, ready for customer service to handle.

Benefits of Chatbots

• 24/7 availability: Chatbots never sleep. Customers can get help at any time.
• Fast response time: Instant replies reduce wait times and frustration.
• Scalability: A chatbot can handle hundreds of conversations simultaneously at no extra cost.
• Reduced support costs: Automating routine questions frees up customer service to focus on complex inquiries.
• Data and insights: Chatbot conversations provide insights into what customers are asking about and where they’re having issues.

Drawbacks to be aware of

• Limited understanding: Rule-based bots cannot understand questions that do not match their scripts.
• Frustration: A poor chatbot that can’t help is worse than no chatbot at all. Customers get frustrated if they can’t get through to a human.
• Setup and maintenance: A good chatbot requires ongoing maintenance, optimization, and updates to its responses.

Popular chatbot solutions

• Tidio: User-friendly platform that combines live chat, chatbot, and email in one. Great for smaller online stores.
• Zendesk Chat: Part of the Zendesk suite with advanced routing and analytics.
• Intercom: A powerful platform with an AI chatbot, live chat, and a customer support suite.
• HubSpot Chat: Free chatbot included with HubSpot CRM. A great option for getting started.
• Gorgias: Built specifically for e-commerce with deep online store integrations.

Most chatbot solutions are installed by adding a JavaScript snippet to your online store, which can be done via Google Tag Manager or directly in the theme.