What is Conversational AI and What It Means For Online Stores

Overview of Conversational AI

Conversational AI is the set of technologies behind automated messaging and speech-enabled applications that offer human-like interactions between computers and humans in natural ways, and is used in together with bots or intelligent virtual agents . It helps businesses deliver personalized engagements and support at scale.

Conversational AI can communicate like a human by recognizing speech and text, understanding intent, deciphering different languages, and responding in a way that mimics human conversation. In a nut shell Conversational AI is any machine that a person can talk to.

You might be asking yourself does this replace human beings? No, In reality, Conversational AI gives us help and expertise in a variety of places that we simply don’t have enough humans for, where humans will find the task boring, repetitive and discouraging, or where humans are too expensive to employ. In addition to that, when Conversational AI automates some of the more repetitive activities humans have to do, it helps them focus on equally important task.

Conversational AI enables enterprises to build transformational chat and voice-based solutions for diverse functions and industries. These solutions can handle the majority of existing tasks, workflows, and service interactions with ease.

How Conversational AI Applications Works

First, the application receives the information input from the human, which can be either written text or spoken phrases. If the input is spoken, ASR, also known as voice recognition, is the technology that makes sense of the spoken words and translates them into a machine readable format, text.

Second, the application must decipher what the text means. It uses Natural Language Understanding (NLU), which is one part of Natural Language Processing (NLP), to understand the intent behind the text.

Next, the application forms the response based on its understanding of the text’s intent using Dialog Management. Dialog management orchestrates the responses, and converts then into human understandable format using Natural Language Generation (NLG), which is the other part of NLP.

The application then either delivers the response in text, or uses speech synthesis, the artificial production of human speech, or text to speech  to deliver the response over a voice modality.

Last, but not least, is the component responsible for learning and improving the application over time. This is called machine or reinforced learning, where the application accepts corrections and learns from the experience to deliver a better response in future interactions.

What it means for businesses

The effect of Conversational AI differs across industries, but in a world where mass marketing is slowly giving way to one-to-one brand building, conversational AI will play a key role in generating these one-to-one experiences and leveraging the information they provide, giving brands an edge no matter their core offering whether it’s in marketing, sales or support – and this engagement makes consumers feel closer to a brand, allows the brand to get more insights about their customers, and improve sales outcomes. Yep, that’s right, it grows revenue, whether you involve a human in the conversation or not

It not only enables brands to offer instant answers about a variety of consideration questions consumers may have, but it ultimately enables brands to generate more minutes of engagement, consumer insights and sales as a result. Conversational AI, because of the quick answers it provides, can also positively benefit customer satisfaction.

Another advantage of conversational AI experiences is that they are more engaging than experiences through other channels. Because individual users can be identified through their messaging profiles, interactions can be highly tuned and personalized. Personalization reduces the friction that often occurs when customers have to explain who they are and what products they have each time that they interact with someone new. With a persistent messaging channel that carries context forward, the focus of the interaction (automated or human-driven) can be on addressing the task at hand rather than trying to identify the user or recall account information.

To get started with Conversational AI, consider Strellio. Strellio Limited is a provider of conversational AI solutions

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Wisdom April 22, 2020 0 Comments

The Power of Conversation in Commerce

Conversations have been central to the development of our civilizations and could possibly be mentioned. The origins of trade are rooted in conversations. An early form of trade, barter, saw the direct exchange of goods and services for other goods and services which was achieved through conversation. Conversation between trading partners ensures a certain level of trust and for that matter makes it be at the heart of building strong customer relationships. Conversation is an immensely powerful and adaptable technology. It can be used purposefully to many different ends such as to: 

  • Improve understanding & sensemaking 
  • Build relationships 
  • Improve engagement 
  • Explore possibilities 

 According to Margaret Wheatley “Conversation is the way that humans have always thought together. In conversation we discover shared meaning. It is the primal human organizing tool.  Even in the corridors of power, very little real action happens in debate, but rather in the side rooms, the hallways, the lunches, the times away from the ritual spaces of authority and in the relaxed spaces of being human.  In all of our design of meetings, engagement, planning or whatever, if you aren’t building conversation into the process, you will not benefit from the collective power and wisdom of humans thinking together. These are not soft processes. This is how wars get started and how wars end.  It’s how money is made, lives started, freedom realized. It is the core human organizing competency.”  

Customer relationship is key for any business. Businesses have to find creative ways to build customer relationships and conversations can’t be overlooked. In fact, how to interact with customers should be a consistent focal point for any business. Research from Forrester found customers who chat with a brand convert three times more often and have a 10-15% higher average cart value. The reason live chat is so effective at closing sales is that real-time conversations with a business help customers make more informed purchases with confidence. For brands who can do it well, conversational commerce is becoming an integral and powerful part of the customer journey. 

Customer relationship is key for any business. Businesses have to find creative ways to build customer relationships and conversations can’t be overlooked. Infact, how to interact with customers should be a consistent focal point for any business. Research from Forrester found customers who chat with a brand convert three times more often and have a 10-15% higher average cart value. The reason live chat is so effective at closing sales is because real-time conversations with a business help customer make more informed purchases with confidence. For brands who can do it well, conversational commerce is becoming an integral and powerful part of the customer journey. Conversational experiences can add value to every part of the customer journey, ranging from when a customer makes their first order to answering a product-related question instantly. 

Using conversational commerce is moving a step further beyond that of speaking directly with the consumer regarding their needs or solving a problem. It’s engaging consumers through the use of highly viable e-commerce channels which will ultimately sell your products. Conversational Commerce allows companies to offer their customers buying and shopping experiences utilizing personalized chat-like technologies that primarily use advanced technologies including messaging apps. 

What this means is you’re utilizing chatbots to have a real-time conversation with a lead or customer. In doing so, it’s possible to take a personalized approach toward collecting data and increasing sales while simultaneously nurturing long-term relationships using dialog. Using this kind of marketing entices users to interact, instead of pushes or make them feel forced to engage in using the content. 

These technologies are chatbots that are AI-enabled which process messages from the consumer and provide responses that are relevant in return. So, in other words, when companies utilize conversational commerce, they’re helping consumers engage by using an automated customer sales platform. These interactions don’t need employees on the other end to help with responding. 

Why is this beneficial? The main reason is that, in addition to saving the company money and time training employees, customers are receiving “real-time” chat experiences. As soon as they arrive on a website, the bot appears and alerts them about an available message. Consumers have the option of clicking it for a question and answer discussion, or they can opt to shop without assistance. 

Even though there are many options available through AI chatbot platforms, consumers also have the option of interacting using messaging platforms including Facebook Messenger, Skype, WhatsApp, WeChat, Viber, and many others. Through the use of these messaging apps, it’s possible for consumers to ping their favorite retailer or company’s handles regarding their favorite brands and begin real-time conversations. 

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Wisdom November 20, 2019 0 Comments