E-commerce trends 2024: the role of chatbots
It's no surprise that online channels and chatbots are on the rise. We read about it in many surveys and assessments by market research firms.
Forecasts and statistics on chatbot use
Several years ago, the American market researchers at Gartner predicted that 70% of customer interactions would be handled via chatbots, machine learning and mobile messaging in 2022. In 2022 they went further and even predicted that by 2027 chatbots would be THE main service channel for a good quarter of all organizations.
Between late 2021 and early 2022, California-based CRM (customer relationship management) company Salesforce surveyed 17,000 consumers from 29 countries about their experiences with and expectations of online offerings. Below, we present the highlights of their report and explain what they mean for chatbots.
Highlights of the Salesforce report on e-commerce trends in 2024
Below, we present the highlights of their report and explain what they mean for chatbots.
The biggest challenges in e-commerce in 2024
According to the report, the main challenges for online business are:
- Digitalization of buying behavior
- Trust and values
- Data security
- Personalization
- Brand loyalty
- Momentum and consistency
In this post, you'll find out what's behind them.
Why it makes sense to know customer expectations:
First of all, we're facing a major shift in customer behavior: social distancing and the pandemic have shaken up habits and led to more online activity.
So we can expect many e-commerce companies to install chatbots and online offerings to profit from this trend. In this competitive situation, it's important to analyze what customers actually expect from online offerings, so you can adapt and stand out positively from the crowd.
What does the Salesforce analysis tell us and what does it mean for chatbots?
The statistical basis of the survey
Salesforce surveyed over 13,000 consumers and almost 4,000 business buyers worldwide, across generations and with a fairly balanced gender split (48% female, 51% male, 1% non-binary).
Results of the Salesforce analysis
Digitalization of buying behavior
According to the Salesforce survey, 53% of consumers generally prefer to buy online. On the other hand, 43% of respondents still prefer non-digital sales channels. But if you look at the figures broken down by age, you can see that the baby boomer generation in particular, i.e. those born up to the mid-1960s, are the least enthusiastic about online at 38%, while a large majority of millennials – today's 30- to 40-year-olds – favor online shopping at 63%.
Reach online-minded customers now with chatbots and shop solutions
For companies, it could therefore pay to enable offline purchases alongside their online offering – at least for the next few years, until younger generations dominate buying. But to win over the high-spending millennials and future generations, you shouldn't hesitate to invest in a good online presence now. Modern chatbots like those from melibo, combined with good shop software such as that offered by Shopify, make getting started easier.
Trust and values
88% of respondents said that trust is becoming more and more important in these times of change, as we're experiencing with climate change and the pandemic. Trust in and identification with a company's values therefore strongly influence buying behavior. In general, customers trust companies more than they did two years ago, and these 5 factors matter most to them:
- Honest and transparent communication
- Responsible handling of customer data
- Being treated as a person, not a number
- Solving problems proactively
- Communicating proactively
Values are also becoming more important: consumers are less reluctant than before to switch retailers, and they base this mainly on
- how companies treat their customers and employees,
- how they treat the environment,
- how they stand up to injustice (e.g. economic or racial),
- how they engage in society.
How do chatbots contribute?
Based on buyers' data, smart chatbots can help personalize offers and communication, act proactively and provide the desired transparency with a wealth of information.
Values and social aspects can be modeled well when customizing the chatbot. But they shouldn't be mere lip service, because once that's seen through, it quickly leads to a breach of trust and lost customers.
Data security
Data security is closely linked to trust. People want their personal data to be handled in a trustworthy way, and in return they're happy for it to be used to give them added value.
However, most consumers believe that companies aren't open about how they use personal data and that they collect more information than they really need.
What does this mean for the chatbot?
To build trust, the chatbot should not only provide information about products, service and the company, but also about how customer data is used, and when collecting data, be able to explain what it will be used for in the customer's interest. If the survey results are anything to go by, the result will be a win-win: users gain trust and in return are happy to share personal data.
Personalization
Personalization is one of the big buzzwords in e-business. Clients are becoming more and more demanding, because over the past few years they've learned what's possible in online business. More and more, they expect:
- a pleasant customer experience
- their individual needs and expectations to be addressed
- their needs and wishes to be anticipated
- offers always to be tailored individually to those needs
- not to be treated as a number
- to be able to identify emotionally with the brand
Chatbots and personalization
Based on collected personal data and analysis of customer behavior, next-generation chatbots naturally excel at meeting these personalization expectations.
Brand loyalty
71% of consumers switched brands in the past year, which means people have become more critical and less brand-loyal. Anyone who doesn't adapt their store to customers' needs therefore quickly risks falling sales.
Besides
- attractive offers (deals),
- product range,
- availability and
- quality,
what customers care about most is
- customer service,
- better offers and
- convenience.
Loyalty programs also help retain customers.
Chatbots can help retain customers and win new ones
Chatbots can't directly influence quality and product range, but they can lead to much higher satisfaction in customer service and convenience by making the shopping experience, checkout and service as pleasant as possible. Smart bots even suggest good personalized deals before a customer is about to drop off. For loyalty programs, chatbots can also greatly simplify and automate the process of redeeming rewards.
Momentum and consistency
As buyers use digital channels more and more, expectations of the quality of a support experience are rising too. Here are some statistics:
- 83% expect to always get direct contact when they have a request.
- 78% use many different channels to make purchase or support requests.
- While 83% expect even complex problems to be solved in a single interaction,
- 53% have had the frustrating experience of support often being very fragmented and inconsistent.
A whopping 94% of respondents say they would probably buy from a company again after a positive customer service experience, and 80% would even tolerate mistakes if they generally received excellent service.
85% of consumers expect consistent interactions with a company, while 66% have had the frustrating experience of having to repeat or re-explain information to different company representatives.
Chatbots improve customer service and bring more consistency to contact
Chatbots are available around the clock for customer requests, meeting respondents' expectation of always getting direct contact. Hybrid chatbot solutions also ensure that issues the bot can't solve on its own are passed on to human agents without any loss of information. And if you link different departments, such as marketing, sales and support, to the chatbot, you ensure a consistent information base for all the representatives customers deal with.
The latest e-commerce trends in 2024 for chatbots and digital customer service
2024 is bringing more interesting developments in e-commerce:
Increased integration of artificial intelligence
AI is increasingly being integrated into chatbots to improve their natural language processing and personalized customer interaction. This integration lets chatbots handle complex requests efficiently and hold human-like conversations. With advanced algorithms and machine learning, chatbots can recognize patterns in customer behavior and respond proactively to needs. This not only makes customer service more efficient but also improves the customer experience considerably. To read more about customer service trends in 2024, we recommend this article.
Combining tradition and innovation
To succeed in the competitive e-commerce market, companies have to combine the fundamentals of retail with innovative technologies and strategies. That means building a solid foundation of excellent customer service, high-quality products and efficient logistics while integrating new technologies such as AI, VR and AR. Companies that take this approach are better equipped to meet customers' ever-changing demands and expectations and to establish a lasting position in the market. Here you can learn more about chatbots and virtual shopping assistants in customer support.
The growth of social commerce
Social commerce is a growing trend that's changing the way people shop online. Platforms such as Instagram, Facebook and TikTok now offer built-in shopping features that let users buy products directly from social media. This reduces the number of steps in the buying process and increases conversion rates. Influencer marketing also plays a crucial role in social commerce by creating a direct connection between brands and their audiences. Companies that use social commerce benefit from the wide reach and direct interaction with potential customers.
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Upcoming e-commerce trends for 2025
For 2025, we expect the following developments and trends in e-commerce:
Hyper-personalization through AI
With advanced algorithms and machine learning, chatbots will be able to make customer interactions even more individual. They can give personalized product recommendations and offer tailored solutions based on customers' behavior and preferences. Hyper-personalization goes beyond simple product recommendations and takes into account individual preferences, purchase histories and real-time interactions. This leads to higher conversion rates and stronger customer loyalty, because customers feel valued and understood.
Augmented reality and virtual reality in e-commerce
Virtual reality (VR) and augmented reality (AR) let customers experience products in a completely new way. With VR, users can enter virtual showrooms and view products in an immersive environment, while AR lets them project products virtually into their own surroundings, for example furniture into their own living room. These interactive experiences help customers make better-informed purchasing decisions and reduce return rates. Companies that integrate VR and AR into their e-commerce strategies can stand out from the competition and offer a unique shopping experience. In this article you can learn more about AR and VR in online shopping.
Advanced self-service features:
Chatbots will offer more self-service options so customers can solve problems on their own. This includes features such as interactive guides, automated returns and detailed FAQs accessible via the chatbot. These advanced features take the load off customer service and let customers find answers to their questions quickly and efficiently. Self-service features promote customer autonomy and improve the overall service experience.
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Conclusion: today's and tomorrow's customers are more open to online business, but also more and more demanding
Surveys by Salesforce and Gartner show that today's buyers use online channels more often and more willingly. But they're also becoming more demanding, because they're gaining more experience of what's possible in service and offerings. These developments are reflected in the e-commerce trends for 2024 and 2025.
To stay competitive, companies therefore have to provide an ever faster, more consistent, more pleasant offering that's available around the clock – possibly even with an offline option alongside their online presence.
That's hardly possible without smart automation❗
But the good news is:
1️. The share of customers using chatbots and self-service portals has risen considerably in recent years, to 58% and 65% respectively, and is even higher among younger generations.
2️. There are next-generation chatbots that deliver exactly the smart automation you need to satisfy these new, demanding customers.
😁melibo chatbots, for example, offer easy-to-configure solutions that use hybrid technology to hand over seamlessly between bot and human agents, creating the best possible customer experience.
