Chatbot Interactions in Retail Will Reach 22 Billion by 2023

Chatbot Interactions in Retail Will Reach 22 Billion by 2023

Foto: Depositphotos

New data from Juniper Research found the global number of successful retail chatbot interactions will reach 22 billion by 2023, up from an estimated 2.6 billion in 2019. According to the new research chatbot use by retailers will enable effective automated customer interactions for retailers. This can deliver high quality user experiences in a low-resource way, boosting customer retention and satisfaction whilst also reducing operating costs.

A crucial enabler of this will be improvements in NLP (Natural Language Processing), which will dramatically reduce the failure rate of chatbot interactions, by making them more natural and valuable for customers. Juniper anticipates that retailers who do not adopt chatbots will face strong challenges from more technologically-adept disruptors, who will use chatbots as an extension to the crucial omnichannel retail experience.

The research also found that chatbots leveraged for customer service have a strong potential to reduce costs; with deployments realising annual savings for retailers of $439 million globally by 2023, up from just $7 million in 2019. These potential savings will act as a key ‘pull’ factor, given the margin pressure that many retailers are presently feeling.

Research author Nick Maynard explained: “By embracing automated customer service with chatbots, retailers can act in a more flexible and efficient way. The wider retail market means that chatbots are no longer a luxury, they are essential”.

Meanwhile, retail sales resulting from chatbot-based interactions will reach $112 billion by 2023, up from $7.3 billion in 2019; representing an annual growth rate of 98%. However, the research found these sales will largely be a result of migration from other channels, rather than a new revenue stream. Accordingly, the research emphasised that while retailers must adopt chatbots for ease of use (and to reduce consumer churn), their return on investment will come from efficiencies, rather than new income.

More from category

People with No Learning Opportunities Are More Afraid of Automation

People with No Learning Opportunities Are More Afraid of Automation

19 Nov 2019 comment

People given fewer opportunities to learn new digital skills are more fearful of the impact of automation, and are more likely to have lower levels of education, according to PwC.

Business Losses to Cybercrime Will Exceed $5 Trillion by 2024

Business Losses to Cybercrime Will Exceed $5 Trillion by 2024

18 Nov 2019 comment

A new report from Juniper Research found that the cost of data breaches will rise from $3 trillion each year to over $5 trillion in 2024, an average annual growth of 11%.

AI Will Have Significant Impact on Sales Training and Coaching

AI Will Have Significant Impact on Sales Training and Coaching

17 Nov 2019 comment

Introducing AI to sales training and coaching can provide a more individualized learning experience that can scale across the organization, according to Gartner.