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BizReport : Ecommerce archives : May 29, 2019

Reports: Chatbots, personalized content driving conversions

Two new report indicate chatbots and personalized content could be game changers for retailers moving forward.

by Kristina Knight

First, Montate has released their Ecommerce Quarterly Report, which indicates the more personalized content is on-screen, the more likely customers are to covert. For example, their research found that three pages with personalized content could cause conversion rates to double and that 10 personalized pages caused a conversion increase of more than 30%. Personalized content was also found to increase add-to-cart rates (65.2%) and to cause a decrease is cart abandon rates from just over 82% to under 60%.

"In order to catch and keep a customer's attention, it is vital that marketers offer a personalized experience to website visitors immediately. Marketing dollars need to be spent on strong engagement levels, not just expensive bounces. By incorporating multiple personalized pages, brands are empowered to drive higher add-to-cart and conversion rates," said Brandon Atkinson, COO, Monetate. "Unless personalization is infused both persistently and pervasively into a user's experience, brands are missing an opportunity to achieve more value from their efforts."

More Monetate data can be downloaded here.

Meanwhile, a new Juniper Research forecast indicates chatbots will soon drive more ecommerce conversions. According to their report by 2023 chatbots will drive about $112 billion in digital sales. As a comparison, this year chatbots are expected to drive just over $7 billion. And, while driving more conversions, the experts believe chatbots that are customer-service focused could also help retailers and brands better control costs.

"However, the research found these sales will largely be a result of migration from other channels, rather than a new revenue stream. Accordingly, the research emphasized that while retailers must adopt chatbots for ease of use (and to reduce consumer churn), their return on investment will come from efficiencies, rather than new income," write the report authors.

As to the exact savings, the report estimates retailers could save about $439 million annually by 2023 if they use chatbots that are customer service focused.

Additional insights from Juniper's How AI can Revive Retail report can be accessed here

Tags: chatbots, ecommerce, ecommerce tips, Juniper Research, Monetate, personalized content, retail trends

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