Conversational AI is here to rule the digitally native business market. More so after the pandemic-induced digital transformation. Seventy-three percent of all the chatbots accessed will be retail-based by 2023 as per Juniper Research. 

Conversational AI allows users to interact with their voice or text via chatbots and natural language processing (NLP) in incredibly satisfying and human-like ways. 

But despite its widespread availability and adoption, you’ve got to vet it for your business and how it can meet your goals. 

Evolution of Conversational Commerce and Conversational AI


The evolution of e-commerce began with the Internet, then mobile, and now with the surge in conversational AI technology. Over the last few years, customers’ expectations of how they should connect with online shops have shifted dramatically. 

Speed and convenience drive the modern-day customer agenda, rather than the traditional price and brand loyalty standbys.

Chatbots driven by artificial intelligence in retail and e-commerce have revolutionized the retail and e-commerce space with speed, accuracy, and agility in customer retention. 

Mobile-friendly e-commerce sites, machine learning (ML), natural language processing (NLP), and natural language understanding (NLU) are three further pieces of technology that are ushering in the next big thing.

All of these are baked into conversational AI chatbots. 


According to estimates, 47 percent of shoppers would be willing to purchase from a chatbot in the future. Juniper Research further estimated actual sales from chatbots were already tipped to double every year from $7.3 billion in 2019 to a whopping $112 billion by 2023.

While the data seems encouraging, it is crucial to recognize that advanced technology needs to be continuously evaluated to check if it delivers the expected results.

E-commerce is driven by sales and revenue, like any other form of business. Therefore, it would be best to analyze how conversational AI technology is working for your e-commerce store.

Your chatbot should be at the center of your business, helping you:

  1. Engage visitors through effective dialogue
  2. Generate high-quality leads
  3. Help customers make informed decisions
  4. Assist buyers in track their orders from end-to-end
  5. Connect across platforms, and
  6. Minimize costs and enhance savings

So what are the parameters to evaluate conversational AI chatbots for your e-commerce business? 

Parameters to Evaluate Conversational AI Technology for Your E-Commerce Store

These are the six principal parameters to look out for when evaluating conversational AI for your site: 

1. Is your bot increasing Customer Engagement?

KPI: Customer Engagement

Customer Engagement is the emotional bond between a customer and a brand. Highly engaged customers purchase more, promote more, and exhibit more brand loyalty. 

In addition, more engaged customer interactions drive buyers to perceive your brand as more helpful and provide you with customer insights. 

A report by Gallup says, fully engaged customers represent a 23% premium in terms of share of wallet, profitability, revenue, and relationship growth over the average customer.

Conversational AI chatbots, equipped with Natural Language Processing (NLP), can interact with consumers, have human-like conversations and become more intelligent on the go. 

AI-powered chatbots support 24×7, engaging shoppers around the clock, minimizing wait times, saving support center costs and helping e-commerce stores offer continuous customer support.

2. Is your bot generating quality leads?

KPI: Lead Generation

A business needs to generate leads. Without leads, most e-commerce businesses will lack the sales and customer base needed to grow. 

You cannot solely rely on intuition to run the business; you need proven tactics to attract customers. 

Conversational AI can help e-commerce stores engage with their shoppers in meaningful ways like asking them questions and conducting surveys. 

Meaningful engagement will help e-commerce brands collect customers’ personal information and nurture them with relevant information.

So how will these interactions help your e-commerce? 

An ideal AI-driven chatbot should interact with visitors, gather data and classify them into various buckets. Based on the information provided by visitors, the AI chatbot can segment users based on interests, demographics, and psycho-graphics. The data collected by the chatbot can later be used to verify and qualify leads and prospects. 

Producing leads and engaging with the visitor simultaneously is an exceptional opportunity for e-commerce brands to build a concrete relationship with their customers.

3. Is your bot enhancing your in-store experience?

KPI: In-store Engagement

Your conversational AI chatbot should help your customers make informed decisions. 

Bots can drive traffic to your store through push notifications and coupons and generate more in-store sales by providing self-service customer support, locating items, and helping customers find the right-fit offers at the point of purchase. 

An online store is not limited to a few agents like a physical store. AI chatbots can assist an unlimited number of visitors at the same time while performing numerous other tasks like generating leads and managing purchase orders. 

Therefore, automated chatbots should efficiently be replacing your high-cost human resources and enhancing your in-store experience by providing real-time assistance to your customers.

4. Is your bot able to effectively process and track orders?


KPI: Order Management, Order Tracking

Virtual assistants have become imperative on the eCommerce front lines as businesses scale and become more global. 

Customers worldwide expect round-the-clock assistance, multi-language fluency, and good product pricing, and inventory intelligence.

Thanks to conversational AI technology, customers can now comfortably order products by simply chatting with a bot and giving personal details like name, contact number, billing address, and payment method. 

Customers can then finish the checkout instantly within the store and are redirected to a dedicated checkout page.

It does not stop there: AI-powered chatbots can help track orders and assist buyers with queries regarding purchase confirmation, invoice, shipping status, and expected delivery in a jiffy. 

Customers can chat with a bot and find details about their orders in a matter of seconds. 

Intelligent chatbots can help your human agents quickly find the information they need, facilitating a positive online experience – a win-win situation for all.

5. Is your bot working effectively across platforms?

KPI: Cross-platform Agility

In the past few years, buyer behaviors and expectations have changed significantly. 

Many consumers have moved beyond the well-crafted website and mobile application and anticipate a blended mesh of touchpoints across visual, text, and voice platforms. 

In addition, with the increasing popularity of mobile devices, the priority of consumers has turned from web-based content to mobile-first experiences.

An intelligent and advanced AI chatbot should guide new visitors with relevant information, help buyers understand your offerings, send meaningful push notifications, and assist your customers in managing and tracking orders.

If you want your consumers to cling to you, they need to be served well across platforms – the ones they prefer and use. 

Therefore, your e-commerce store needs the power of agile conversational AI chatbots that seamlessly integrates and interacts with consumers without any glitch across platforms.

6. Is your bot helping you save costs?

KPI: Cost Savings

Every year, companies spend over $1 trillion on customer service calls

But Artificial Intelligence (AI) and Natural Language Processing (NLP) solutions are changing the game. AI-powered chatbots not only help businesses cut down call center costs but also help enhance customer relations as well.

According to a Deloitte study, 56% of companies have invested in conversational AI technology to enhance cross-channel experiences for consumers. 

The practice of adapting AI-powered technology is becoming more standard with the new normal driven by the COVID-19 pandemic. 

As a result, cost savings have become a critical KPI for e-commerce.

By 2022, chatbots and Natural Language Processing (NLP) will save companies about $8 billion per year in customer support costs. Call centers can save as much as $1 million in annual customer service costs for every second chatbot can slash average handling times.

Conversational AI for eCommerce

E-commerce has modified the way we shop and do business. 

Whether it’s Business to Consumer (B2C), Business to Business (B2B), or any other model, e-commerce marketplaces provide various benefits over conventional “brick and mortar” stores – for both customers and sellers. 

Conversational AI technology has magnified the opportunity to buy and sell online, enabling businesses to reach more customers and customers to find brands they can love.

Drive new sales and revenue with AI chatbot, tailored to your needs with Insync’s exceptional AI chatbot offering trusted by leading brands.