Influence of automated service interaction (Chat Bots) in customer retention and acquisition

Abstract

In recent times, there has been a rapid increase in the number of e-commerce platforms providing some or other kind of automated customer service to its customers. Right from the point a customer starts interacting with a platform to the time they check out, automated services assist customers throughout the process. Looking at it from a traditional point of view, where customers needed a real person addressing their queries regarding a product or service to the current scenario of doing an entire transaction without any involvement of a person and in case of a grievance, getting it addressed from a virtual assistant, times have changed. Live chatbots have made the process more efficient and quicker. The benefits of using a chatbot are not limited to faster and more convenient customer service. Still, it helps to increase productivity, customer engagement, customer acquisition, and retention and helps in better understanding the consumers' needs. Chatbots can help in many marketing activities like scheduling meetings, tracking orders, sharing updates and news, etc. These chatbots provide 24/7 support to customers and reduce the repetition of problems as well. Our project mainly focuses on support and assistant chatbots and what new features or changes could be added to enhance customer retention and acquisition and increase satisfaction.