Chatbots gain steam with consumers, especially millennials

19. July 2017.

Chatbots gain steam with consumers, especially millennials | Mobile Payments Today

Chatbots gain steam with consumers, especially millennials

July 20, 2017

One quarter of U.S. consumers are using a chatbot on a daily basis, and that figure spikes to 40 percent among the millennial generation.

More importantly for retailers, 77 percent of consumers surveyed by 3Cinteractive Corp., for its  Chatbot Consumer Report, said positive interaction with a chatbot makes them buy more.

The online chatbot survey polled approximately 500 U.S. households. Yet, while chatbots are increasingly being embraced by consumers, the survey noted there is still a long way to go before the technology makes its mark on impacting businesses.

"When consumers were asked why they thought chatbots were not valuable, 71 percent said the chatbot could not answer their question or help them. As the technology advances, businesses will need to expand the capabilities of their chatbots to keep up with growing consumer expectations," according to a press release on the survey.

Consumer adoption of chatbots is one of many panel topics at the upcoming CONNECT 2017/The Mobile CX Summit taking place in Philadelphia from August 21-23. The event  will explore the many opportunities that retailers, restaurants and other B2C enterprises have for leveraging mobile and digital channels to build their brands, increase sales and improve customer engagement, experience and loyalty.

When it comes to using a chatbot versus a human interaction, consumers would rather use the chatbot to check order status and gain product research, according to the 3Cinteractive survey. But 50 percent still prefer a human interaction when it comes to customer service inquiries or making an appointment or reservation.

"This data is critical for brands since 83 percent of respondents said they would be more loyal to a brand for offering a chatbot that enables these tasks," according to the release.

"Choosing the right chatbot strategy for your brand is critical, it's not one size fits all," said Margie Kupfer, vice president of marketing at 3Cinteractive, in the release. "Understand your customer preferences and build your chatbot strategy around one specific function that benefits the customer. Starting small and executing your chatbot successfully ensures a positive brand experience and allows you to learn more about your customer in order to scale your chatbot into other business functions."

Topics: In-App Payments, POS, Restaurants, Retail

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