Why Companies Are Using Chatbots To Court New Customers

Why Companies Are Using Chatbots To Court New Customers
Loyalty & Membership

Chatbots guide first-time customers through unfamiliar products and services, allowing for more intuitive onboarding and fewer abandoned transactions

PSFK Labs
  • 16 april 2018

Chat is growing as a medium in retail, and it can be particularly effective for new customers—when trying to navigate through unfamiliar products and services, it is crucial that they not become frustrated and give up. As Forrester noted, “53% of customers will abandon an online purchase if they can’t find a quick answer to their questions. AI powers pre-sales services to educate buyers, minimizing purchasing errors and buyer’s remorse.”

Bots can streamline tedious processes like appointment scheduling or initial product setup to save users time and eliminate frustrations. Using a combination of step-by-step instructions and intelligent automation, virtual agents are able to remove common pain points and seamlessly guide users through the onboarding process, thus helping them receive a product or service’s value as soon as possible.

A PSFK survey found that companies that use chatbots are viewed as efficient (47%), innovative (40%) and helpful (36%). Businesses in industries across the board have already started implementing bots for intuitive onboarding.

Digital insurance provider Lemonade uses a virtual assistant to help onboard new customers and process insurance claims more quickly. The algorithms powering the virtual agent understand the nature of claims, their severity and whether the user is in a state of emergency. The bot, named Jim, assesses the likelihood of a claim being fraudulent and even nudges people to be more honest by incorporating behavioral economics research into details in the conversation. Jim’s AI tracks large amounts of user-generated data points to predict what customers need, making the process of filing an insurance claim easier.

In healthcare, US startup HealthJoy offers a chat-based platform through a bot named JOY that routes members to smarter options for care and medication. The mobile app connects users to a wide variety of services including online doctors, healthcare concierges, prescription savings and medical bill reviews. Whether customers need guidance from the very start of the process, or help figuring out which questions to ask and what information to provide, JOY is proactive and able to reach out as often as needed to remind users about benefits or information pertaining to their situation.

Travel brands will also want to take note of the functions bots can fill in creating booking process that goes above and beyond. KLM Royal Dutch Airlines introduced an AI-powered Messenger chatbot named BlueBot (BB) that enables customers to book their tickets without needing to talk to one of the company’s agents, unless necessary. BB helps customers book trips in a conversational manner and is supported by human service representatives, who are at hand if BB can’t help with a customer’s query. The chatbot also gives KLM passengers advice on what to pack based on their destination, trip duration and local weather.

By providing immediate answers to all of a customer’s needs and making personalized suggestions, chatbots can usher a first-time transaction to its conclusion. The added benefit is being able to repeat this experience every time, ensuring reliable service and inspiring loyalty.

Chat is growing as a medium in retail, and it can be particularly effective for new customers—when trying to navigate through unfamiliar products and services, it is crucial that they not become frustrated and give up. As Forrester noted, “53% of customers will abandon an online purchase if they can’t find a quick answer to their questions. AI powers pre-sales services to educate buyers, minimizing purchasing errors and buyer’s remorse.”

+AI
+artificial intelligence
+chat
+chatbots
+Customer acquisition
+customer support
+customer-service-debrief
+Europe
+Fashion
+fashion / apparel
+financial services
+Frictionless Transaction
+klm
+loyalty
+loyalty & membership
+Luxury
+Market Research
+mobile
+Personalized Loyalty
+post purchase & service
+PSFK Imagery
+psfk labs
+retail
+Transactions & Payments
+USA

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