Chatbots could drive $112 billion in retail sales by 2023
Chatbots are forecasted to draw sales from other marketing channels and drive major savings for retailers.
As technology improves with natural language processing and AI, chatbots will take away revenue from other marketing channels, a recent study examining retail brands by Juniper Networks claims. In fact, retail sales from chatbots will nearly double annually, reaching $112 billion by 2023, the study says. And retailers will see an increase in savings, thanks to the automation of customer sales and support processes.
“Retailers can expect to cut costs by $439 billion a year in 2023, up from $7 billion this year, as AI-powered chatbots get more sophisticated at responding to customers,” Juniper said.
The study also suggests that as retail brands shift to chatbot technology, more consumers will feel comfortable interacting with chatbots to resolve customer service issues and make direct purchases. A consumer-facing survey by marketing firm Uberall indicates that 20% of consumers surveyed are “very interested” in chatbot experiences from brands. 80% indicated that they have had “generally positive” interactions with chatbots.
Why we should care
As martech advances, consumers will also adapt their online behaviors and their expectations for digital interactions will change. According to the report, chatbots are positioned for rapid growth in the retail industry; we need to better understand how that will impact our digital marketing efforts and attribution methodologies going forward.
For digital marketers who haven’t yet experimented with chatbots, it is time to consider the best solution for your brand. Digital marketing is experience-driven; creating positive interactions with your customers with chatbots will be crucial to customer retention and driving sales.