Elevating Business Experiences: AI-Powered Chatbots Reforming Marketing and E-Commerce

Elevating Business Experiences: AI-Powered Chatbots Reforming Marketing and E-Commerce

Mehul Waghambare, Sandeep Prabhu, P. Ashok, N. A. Natraj
Copyright: © 2024 |Pages: 27
DOI: 10.4018/979-8-3693-1503-3.ch001
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Abstract

The COVID-19 pandemic is altering the ways in which we connect with one another, communicate with one another, and work together. The economic crisis brought about a fast transformation in both the “what” and the “how” of businesses. There has been a shift in recent years towards conducting business online. This shift includes selling things, generating leads, and establishing connections with clients. The emergence of the chatbot as a trend is one that is contributing to the reduction of the social distance that exists between customers and businesses. A chatbot is a software programme that is created for conversations that are meant to sound human. This study seeks to determine the extent to which many businesses have implemented the tool into their communication strategy. Additionally, the chapter attempts to put forward an understanding of chatbots marketing and the usage of chatbots in the process of online purchasing. In addition to this, the chapter makes an effort to discuss at length the design in such a manner that it will operate at its highest possible level in terms of user acquisition.
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Introduction

Evolving Customer Experience in Era of Digitalization

IoT and AI will have the greatest impact on the rate of economic development in many countries (Kasey Panetta, 2016). The increasing functionality of these technologies' devices, systems, applications and equipment is surely one aspect that enables their adoption in corporate, consumer, and societal dimensions. On the one hand, they serve as a catalyst to developing emerging solutions as a result of their presence, and on the other hand, they serve as the digital economy's unique DNA code, subjected to ongoing processes that increase their potential (Kaczorowska-Spychalska, 2019). Digital change is unavoidable, and it contributes to the current culture and technology system, which fosters new social behaviours while also accelerating the creation of new, impossible things. Computers and other digital innovations rely on our brains' ability to comprehend and modify our surroundings. Digital technologies are currently thought to expand the functionality of implemented solutions, increase operational effectiveness, and improve and optimise existing processes and tools in an individual organisation. The “digital revolution” has radically changed the customer experience over the last 20 years. Consumer preferences have evolved, technology has advanced, and communication is no longer constrained by distance or time. The convenience and speed of this transaction also contribute to the growth of online businesses all over the globe. Digital technologies have lowered the cost of entering some markets, even across borders. For new entrants, digitalization has also lowered the burden of scaling up production, advertising, and distribution (OECD, 2018). The ease of starting a business online has resulted in the growth of thousands of businesses in every industry online (Avis, 2015). This possibly could create a market full of perfect competition. Businesses hence are looking into different marketplaces, exploring ways to market their services differently in order achieve competitive differentiation. In a fast-paced market that is full of competition, it becomes almost essential for businesses to cater to their consumers efficiently and well in time. Customers are demanding 24-hour service for everything from banking and finance to healthcare. In this century, quick and efficient technology has become the norm and consumers have high expectations. If a business does not address a consumer's needs, the individual has enough options to let go and turn to a competitor business. Hence, it has become imperative for companies to put into place an enhanced digital system to cater to their consumers. Fig.1 shows the Digital Customer Experience Areas.

Figure 1.

Digital customer experience areas

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Effect Of Covid-19 On Customer Behaviour And Shopping

COVID-19 has had a huge and immediate impact on customer behaviour. Spending is down across most industries, purchases are changing from physical to the online platform, and consumer well-being has become a primary consideration for businesses. Companies have acknowledged that customer experience would be shaped by current behaviours in the upcoming years. They should next make sure these opportunities are compatible with their firm's objectives and capabilities. Dynamic customer data, Safe and contactless engagements and Digital excellence will define the post-pandemic customer experience. Each organisation will pursue these priorities in their own way, depending on its industry competitive landscape as well as the starting point. Some organisations have begun to demonstrated their awareness of what customers value as well as have innovated strategies to fulfil both their previous and new expectations. These early adopters provide a useful guide for how to proceed (Elevating Customer Experience Excellence in the next Normal | McKinsey, n.d.).

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