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The Revolution that Made it Possible to Build Human-Level Chatbots

Every person who wants to grow their brand is always looking for new ways to boost sales, improve customer satisfaction, and build brand loyalty. One of the most effective ways to do so is to establish a strong communication channel through which customers receive prompt responses to their questions and concerns.

But how does a brand achieve this for a virtual shopping experience?

Since the beginning of the pandemic, more and more customers have switched to online shopping instead of in-store purchases. Every e-commerce brand is trying to answer the question: How do we engage with our customers online? How do we improve their shopping experiences and increase our credibility?

Well, beginning with 2016, chatbots touted themselves as the answers to these questions. Did they succeed? No! These chatbots had poor tech and execution. They overpromised and underdelivered.

"As a result, 68% of customers leave without purchasing because they are dissatisfied with the buying experience and the lack of personalization".

So does this mean e-commerce brands have to give up on the benefits of great communication with customers?

Again, No! The chatbots that have existed so far are just the first generation of bots. They use Level 1 and Level 2 Artificial Intelligence (AI) technology. 2020 brought a revolution in natural language processing and a new generation of technology in the form of Level 3 AI technology.

Level 3 AI technology is going to revolutionize the world of chatbots. To understand what this means for your brand and how different this technology is, read on!

Redirecting Attention to Customer Conversations

So how important is it to engage with customers and answer their queries? Well...

46% of e-commerce customers leave brand websites after viewing only one page because their experience is not personalized.
11% of customers abandon their carts because the checkout process is too complicated and there is no assistance.

On the other hand:

86% of consumers spend more if brands engage with them and provide them with a fantastic experience.
93% of customers are likely to repeat purchases with brands that offer excellent customer service.
Conversions increase by 20% if customers can easily access product details and reviews.
53% of e-commerce customers cite "easy to use and navigate website" as their primary reason to maintain brand loyalty.

Most brands are aware of these statistics. The problem lies with the existing generation of chatbots, which did not understand and answer consumer concerns satisfactorily and did not deliver a customized experience.

So then, are Chatbots the best way to engage with Customers?

Yes! According to a Capgemini study from 2020, 41% of customers prefer AI-only interactions in the early stages of their customer journey. And it is the new generation of chatbots based on Level 3 AI technology that will deliver on their promise of increased customer engagement and delightful customer experiences.

"The first generation of chatbots was difficult to use. They did not understand customer queries and did not give customers enough options to express their concerns. They were not personalized enough".

As a result, they did nothing to lower the user bounce rate. Brands had given up these chatbots as a hopeless cause.

However, with the development of Level 3 AI technology, brands can revolutionize customer conversations and refocus on customer engagement.

Buyers prefer to make well-informed decisions based on which product will best meet their needs, how well it has performed in the past, and whether or not its components are suitable for them. What role do Level 3 AI chatbots play in this?

These chatbots act like live sales agents and engage customers in a conversation, instead of offering customers a pre-made menu of four or five options.
They understand and answer all customer queries concisely.
They make appropriate product recommendations and establish trust in the product's ability to perform.
They keep track of previous customer preferences, likes, and dislikes.
They help cross-sell and up-sell additional products.
They are completely personalized to each user.

And with the successful creation of the world's first chatbot based on Level 3 AI technology, the dream of excellent customer engagement is no longer a pipe dream.

Why the First Generation of Chatbots Failed

How do you know whether the new generation of chatbots based on Level 3 AI technology will live up to their promise?

The answer lies with the technology and the programming behind Level 3 AI chatbots and how different they are from Level 1 and Level 2 chatbots.

Level 1 AI chatbots

Conversational interfaces based on Level 1 AI technology are the most basic version of chatbots. Most e-commerce brands still use this version of chatbots.

Level 1 AI chatbots are click-based chatbots. The programmer creates pre-defined buttons and matches them to pre-defined responses. Customers can only choose from the options available in this pre-set menu.

"Programmers cannot anticipate every query that a customer will have. Customer inquiries that aren't covered by the pre-defined menu go unanswered. This frustrates customers, and they drop off the brand website".

Additionally, since these chatbots don't allow customers to type freely, they deprive customers of a tailored, store-like experience. Customers believe the brand doesn't care about their tastes and preferences because they can only choose from a template of pre-determined concerns. They feel ignored and bounce off to another brand that can better cater to their needs.

Let's look at how a level I chatbot will work for an e-commerce brand selling beauty products to get a better idea.

The user clicks on a brand ad and is directed to the brand's website.
The conversational assistant presents to the user a product menu consisting of facewash, body wash, and shampoo.
The user chooses facewash.
The bot allows the user to select whether they have oily skin or dry skin.
The user has sensitive skin or combination skin, which is not represented in the menu.
The user feels frustrated because the brand is uninterested in their needs.
The user decides to give the brand a second chance and tries to look for a lotion.
Even if the brand sells lotions, the bot is unable to provide this option.
The user drops off with an unpleasant experience.

As a result, Level I conversational AIs fail because they don't respond to all customer questions or consider their preferences, leaving them feeling unheard and uncared for. The process of getting help is tedious and time-consuming. Additionally, the lack of personalization gives customers a poor buying experience.

Level 2 AI chatbots

Conversational interfaces based on Level 2 AI technology are marginally better than their predecessors because they allow customers to type their concerns freely. They do not limit the consumer to a finite set of questions or responses.

"However, a level 2 conversational AI is limited to single-step queries. The chatbot can only analyze the user's input at that stage. It cannot retain previous user inputs, which often include customer preferences and customizations".

Thus, a level 2 conversational interface does not solve the problem of lack of personalization.

Further, a level 2 AI chatbot does not understand customer concerns unless the user types in the exact phrase, as written in its programming.

Let's take a look at how a level 2 chatbot for the same e-commerce brand works to get a better idea.

After clicking on a brand ad, the user is taken to the brand's website.
The bot asks the user what product they are looking for.
The customer types, "I am looking for a face wash for oily and sensitive skin."
The bot recognizes "facewash" only and asks the user their skin type.
The customer must retype "oily and sensitive skin."
The bot is programmed to recognize "oily skin" and "sensitive skin" and does not recognize the customer's preference.
The customer is increasingly becoming irritated.
Instead of looking for a facewash, the customer switches to a lotion.
The bot does not remember their preference of "oily and sensitive skin." It asks them their skin type.
The customer drops off immediately, frustrated and disappointed.

Thus, level 2 conversational AI assistants fail as well. Customers' queries or preferences aren't recognized unless they're typed in a way that exactly matches the bot's programming. Additionally, the bots do not retain information about the user's preferences, or any question already answered at an earlier stage. As a result, the customer has a negative experience and leaves feeling frustrated and neglected.

Level 3 AI Chatbots To The Rescue

So I know the flaws of Level 1 and Level 2 AI chatbots, but what about Level 3 AI chatbots? Is it true that they work? What guarantees do I have that they won't have the same flaws as previous chatbots?

Well, Level 3 AI chatbots are the closest replication of an in-store buying experience. They use the most advanced technology available, including machine learning, natural language processing, and natural language understanding, to understand user queries and curate unique responses for each customer.

First, even if the customer's input is grammatically incorrect, a level 3 conversational AI understands their intent. This chatbot does not need the user to exactly match a pre-programmed input.

It also allows the customer to converse in multiple, complex sentences with several elements, including the product type, product customization, specific components, and price range.

Secondly, a level 3 AI chatbot retains prior information about the customer's preferences. As a result, it reduces the number of questions a buyer must ask to obtain his desired product, significantly lowering the drop-off rate.

It also uses this customer preference data gathered at each stage when responding to additional questions or cross-selling similar products.

Finally, this chatbot can quickly assuage customer concerns about the efficacy of a product. It recognizes customer concerns and responds by providing relevant reviews and statistics immediately.

Let's understand how a level 3 AI chatbot will work for the same e-commerce brand.

A customer visits your brand's website after clicking on a brand ad.
The customer asks the bot to show them a facewash.
The bot retrieves previous interactions with the buyer, such as when the buyer was looking for an oily skin face wash. It looks through the available facewashes to see which ones are suitable for oily skin. The brand has two facewashes for oily skin. The first treats acne, the second treats pigmentation.
The bot processes all this information and constructs a response: "What concern are you looking to address - Acne or Pigmentation?"
The buyer clarifies that they are looking for a facewash that treats acne.
The customer then asks the bot, "Will this really work?"
The bot recognizes the customer's desire to gain some assurance about the product's efficacy. It uses product ratings, reviews, before-and-after images, ingredients, and any other information at its disposal to curate an appropriate response.
The bot reassures the customer and builds confidence in the product: "Yes, this product will work for you! Over 1000 people gave it a 4.6-star rating because it worked well for them. Here's a before-and-after shot to show you how it'll look."
The bot is also able to contextualize post-purchase queries and curate appropriate responses for each situation. For example, a simple query of "Where is my order" requires different responses in different contexts.
If the customer asks this question 2 hours after placing their order, the bot will understand they want reassurance that the order has been placed and processed. It will respond accordingly.
If the customer asks it 2 days after placing the order, the bot will respond with the order status. It will also inform the customer of the order's estimated delivery time.
If the question is raised 5 days after placing the order, the bot will recognize that there has been an undue delay in the order and curate an appropriate response.
You can thus see that the bot mimics an in-store experience as closely as possible.

Thus, a level 3 conversational AI can quickly recognize and respond to customer queries. It stores customer preferences for future reference. It helps build trust in the brand and its products. And by doing so, the chatbot significantly boosts brand sales and provides customers with a tailored, delightful, and seamless experience.

LimeChat- The Future of Customer Engagement

Okay, so by now, you understand the tech behind the current generation of chatbots. You know how different a chatbot powered by Level 3 AI technology would be.

So finally, the ultimate question: Where can I find Level 3 AI chatbots? Whom do I contact to cash in on their benefits? The answer: LimeChat!

LimeChat is the first of its kind chatbot, powered by Level 3 Conversational AI, tailored specifically to the e-commerce vertical. It uses the most advanced AI technology available to understand customer queries, concerns, and emotions to replicate an in-store experience as closely as possible. The LimeChat chatbot greatly improves customer experience and makes your customers' journey, from discovery to the recommendation to checkout, delightful and seamless.

In a nutshell, what can LimeChat do for my brand?

Recapture customers: Till now, a large part of your customer crowd has been dropping off because the assisted buying journey is too time-consuming. LimeChat can help you recapture this crowd by allowing customers to specify what they are looking for in a single sentence and delivering the products they were looking for promptly. Customers can ask this chatbot anything, from product features to whether the product is right for them, and LimeChat responds as if it were a live salesperson.
Increase sales and conversion rates: LimeChat's smart AI chatbot makes the buying journey so much simpler. Its quick product recommendations and efficacy reviews help build trust in the product and increase the likelihood of purchases. This trust and the enjoyable buying journey also help LimeChat successfully cross-sell and up-sell additional products, further increasing sales. You'll be surprised at how much your website conversion rates improve simply by focusing on this previously lost customer engagement!
Reduce customer support cost: How many of your customer support agents assist customers with product questions or other routine tasks? LimeChat helps recreate an in-store experience as closely as possible. Customers feel that they are talking to an expert who cares about their concerns and will guide them carefully through their journey. This reduces the load on the customer service team, allowing agents to focus on more complex issues.
Build brand loyalty: A seamless, fabulous buying experience does wonders to build brand loyalty. Customers return again and again to brands that make them feel valued by engaging with them and understanding their needs. LimeChat helps build trust in your brand's products. It remembers each customer's product preferences and refers to them when recommending other products, both during the current transaction and in the future. Thus, LimeChat personalizes every customer's buying journey to help you grow and retain your customer base.

And for all these reasons, LimeChat could be the key to showing your customers that you care, and help your digital brand reach new heights.

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