Chatbots in Retail: Nine Companies using AI to boost customer experience

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</div> </div>  <div class="article-header__content"> <h1 class="article-header__title">Chatbots in retail: nine companies using AI to improve customer experience</h1> <p class="article-header__excerpt">Chatbots in retail are enjoying a surge due to the omnipresence of messaging apps. Retail brands are using these platforms to bridge the gap between online and offline experiences. By leveraging the ability to build a chatbot on these platforms, brands are engaging with their customers in a more conversational setting. In doing so, they are not only able to deliver more accurate suggestions, but also offer them further opportunities, like exclusive access and previews that feel highly personalised. Which retail brands are using chatbots, and how?</p> <div class="article-meta"> <span class="article-author"><a href="https://www.retail-insight-network.com/author/pamelakokoszka1/" title="Posts by Pamela Kokoszka" class="author url fn" rel="author">Pamela Kokoszka</a></span> <span class="date-published">August 21, 2018</span>  </div>  <div class="gdm-article-actions"> <div class="gdm-article-share"> <span class="button-toggle transparent-with-border gdm-article-share__button">Share <ul class="gdm-article-share-list__container"> <li><a href="https://www.retail-insight-network.com/features/chatbots-in-retail-ai-experience/" class="copy-link">Copy Link</a></li> <li><a href="https://twitter.com/intent/tweet?text=Chatbots+in+retail%3A+nine+companies+using+AI+to+improve+customer+experience%0a&url=https://www.retail-insight-network.com/features/chatbots-in-retail-ai-experience/&via=globaldataplc" class="x-share" target="_blank">Share on X</a></li> <li><a href="http://www.linkedin.com/shareArticle?mini=true&url=https://www.retail-insight-network.com/features/chatbots-in-retail-ai-experience/" class="linkedin-share" target="_blank">Share on Linkedin</a></li> <li><a href="https://www.facebook.com/sharer/sharer.php?u=https://www.retail-insight-network.com/features/chatbots-in-retail-ai-experience/" class="facebook-share" target="_blank">Share on Facebook</a></li> </ul> </span> </div>  </div>   </div>  </header> <section class="article-content"> <div class="main-content"> <div class="article-image"> <figure class="article-image__container"> <picture> <source media="(min-width: 990px)" srcset="https://www.retail-insight-network.com/wp-content/uploads/sites/18/2018/08/pexels-photo-190362-e1518691628921.jpeg" /> <source media="(min-width: 430px)" srcset="https://www.retail-insight-network.com/wp-content/uploads/sites/18/2018/08/pexels-photo-190362-e1518691628921.jpeg" /> <img src="https://www.retail-insight-network.com/wp-content/uploads/sites/18/2018/08/pexels-photo-190362-e1518691628921.jpeg" alt="" /> </picture> <figcaption class="c-featured-image__description">Which brands are using AI to improve customers experience?</figcaption> </figure> </div> <h2>Chatbots in Retail: Transforming the Customer Experience with AI</h2> <h2><a href="https://www.retail-insight-network.com/multichannel/">Chatbots</a> in retail:</h2> <h3>H&M</h3> <p class="drop-cap">In early 2016, fashion brand H&M launched a chatbot on Canadian messaging app Kik, which, while less well known internationally than some competitors, is used by 40% of US teenagers. The chatbot allows customers to see, share and purchase products from H&M’s catalogue. It offers a taste of a personal stylist service, using photo options and asking questions about shopper’s style to create a comprehensive profile of what they look like. Once it creates a style profile, shoppers can use the bot to create their own outfits, vote and browse outfits created by other users, and shop. While the chatbot does a good job at learning about a customer’s preferences, they are limitations to the bot, as it currently does not handle misspellings and slang. It is also not advertised on the company’s website, making it hard for shoppers to find.</p> <div class="sponsored-whitepaper sponsored hidden sponsored-with-form"> <div class="sponsored-whitepaper-container grid-x" id="whitepaper_form"> <div class="content small-9"GD50 Explorer"> <h4>Free Report</h4><h3>Walmart: Going Beyond Company Disclosures </h3> <div id="vms_description" class="buyers-guide__description">Walmart has rounded out its fiscal year with a strong set of numbers that show it has taken supply chain disruption, rising costs, heavy inflation, and various other problems in its stride. There is comfortable growth on both the top and bottom lines, which is extremely respectable given tough prior year comparatives. Walmart hiring is slowing down as compared to hiring in the months of April and March in 2022. Walmart posted close to 40,000 vacancies in March and 30,000 in April, which has gone below 10,000 in June 2022. Walmart Company Filings has most of the mentions related to the ESG and COVID-19 themes in 2021. ESG has more than 300 mentions in the company’s 2021 filings which indicates the rising focus on ESG-related issues. Our report on Walmart: Going Beyond Company Disclosures, demonstrates GlobalData Explorer’s ability to:   <ul> <li>Track and monitor a company’s movements through alternative indicators to gain insights into the strategy before it is disclosed by the company</li> <li>Gain insight into a company’s capital deployment strategy, by assessing historical deal volumes and specific transactions executed by the company, in addition to identifying sectors of focus</li> <li>Go beyond basic financial information, to access key industry-relevant indicators for a company and how these have progressed over time</li> </ul> Don’t miss out on key market insights that can help optimize your next investment – read the report now.</div><div class="successMsg hidden" id="enquiry3_1"> <b class="whitepaper__title--msg">Thank you.</b><p class="whitepaper__title--msg--2">You will receive an email shortly. Please check your inbox to download the Report.</p><div class="in-article-premium-insights mobile-useragent-scalar"><div class="cell large-2 sidebar-scalar mobile-only"> <div class="gdm-widget gdm-recommended-reports gdm-pi-recommended-reports gdm-orange-banner recommended-whitepapers"><h3>Go deeper with GlobalData</h3><ul><li class="grid-x"><div class="cell small-2"><figure><a href=""><img decoding="async" src="https://pr-fr-json-b2b-gdm-figaro1.pantheonsite.io/pharmaceutical-technology/wp-content/themes/goodlife-wp-B2B/assets/img/report.png" alt="ReportsLogo" /></a></figure></div><div class="cell small-10 details"><div class="category"><a href="https://www.globaldata.com/store/report/" target="_blank">Reports</a></div><h4><a href=https://www.globaldata.com/store/report/digital-transformation-in-retail-theme-analysis?utm_source=Features&utm_medium=18-10614&utm_campaign=recommended-reports-nonlgp target="_blank">Retail 3.0 - Key Disruptive Forces to Accelerate Tech Transformation 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placeholder="Enter your work email" aria-required="true" onkeyup="checkEmail_1(this.form.Email)"/><button type="submit" value="submit" id="whitepaper-form-show" onclick="checkEmail_1(this.form.Email)" class="button solid primary c-btn c-btn--whitepaper whitepaper__show_1">Submit </button><small></small> </div> </div>  <div id="hidden" class="enquiry-form-show_1 hidden"> <div class="form-group"> <input id="enq-first-name" type="text" name="first_name" class="enquiry__input" placeholder="First name *" aria-required="true"/><small></small> </div>  <div class="form-group"> <input id="enq-last-name" type="text" name="last_name" class="enquiry__input" placeholder="Last name *" aria-required="true"/><small></small> </div>  <div class="form-group"> <input id="enq-company" type="text" name="Company" class="enquiry__input" placeholder="Company name *" aria-required="true"/><small></small> </div>  <div class="form-group"> <input id="enq-job-title" type="text" name="job_title" class="enquiry__input" placeholder="Job title *" aria-required="true"/><small></small> </div>  <div class="form-group"> <select name="countrycode" id="enq-country-code" class="enquiry__input--select select--country" placeholder="Country Code *" aria-required="true"> <option value="0" id="country-label" selected disabled hidden> Country Code *</option> <option data-countryCode="GB" value="44">UK (+44)</option> <option data-countryCode="US" value="1">USA (+1)</option> <optgroup label="Other countries"> <option data-countryCode="DZ" value="213">Algeria (+213)</option> <option data-countryCode="AD" value="376">Andorra (+376)</option> <option data-countryCode="AO" value="244">Angola (+244)</option> <option data-countryCode="AI" value="1264">Anguilla (+1264)</option> <option data-countryCode="AG" value="1268">Antigua & Barbuda (+1268)</option> <option data-countryCode="AR" value="54">Argentina (+54)</option> <option data-countryCode="AM" value="374">Armenia (+374)</option> <option 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data-countryCode="QA" value="974">Qatar (+974)</option> <option data-countryCode="RE" value="262">Reunion (+262)</option> <option data-countryCode="RO" value="40">Romania (+40)</option> <option data-countryCode="RU" value="7">Russia (+7)</option> <option data-countryCode="RW" value="250">Rwanda (+250)</option> <option data-countryCode="SM" value="378">San Marino (+378)</option> <option data-countryCode="ST" value="239">Sao Tome & Principe (+239)</option> <option data-countryCode="SA" value="966">Saudi Arabia (+966)</option> <option data-countryCode="SN" value="221">Senegal (+221)</option> <option data-countryCode="CS" value="381">Serbia (+381)</option> <option data-countryCode="SC" value="248">Seychelles (+248)</option> <option data-countryCode="SL" value="232">Sierra Leone (+232)</option> <option data-countryCode="SG" value="65">Singapore (+65)</option> <option data-countryCode="SK" value="421">Slovak Republic (+421)</option> <option data-countryCode="SI" value="386">Slovenia 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Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.</p> </div>  </form> </div>  <iframe src=" " name="formResult" id="formResult"></iframe> </div>  </div>  <h3>Very.co.uk</h3> <p>Also in 2016, Shop Direct introduced a chatbot within the iOS app for its online retail brand Very.co.uk to add customer service offering. Customers can track orders, receive a reminder of their account number and track payments to their account. The Very Assistant currently uses questions and multiple-choice answers to deal with queries, but Shop Direct is also working on an artificial intelligence (AI) bot that can understand anything a customer writes. 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Download a free sample"> <input type="hidden" name="VMS_Title" value="Company Profile – Free sample"> <input type="hidden" name="VMS_Whitepaper_URL" value="Chatbots in retail: nine companies using AI to improve customer experience"> <input type="hidden" name="handler" value="https://api.hsforms.com/submissions/v3/integration/secure/submit/26632421/6d3b39e4-f95f-4119-bb5e-6225c6307049"> <input type="hidden" name="handler_restapi" value=""> <input type="hidden" name="VMS_Form_Download_Date" value="August 21, 2018"> <input type="hidden" name="Permutive_ID" value=""> <input type="hidden" name="VMS_Form" value="Company Profile"> <input type="hidden" name="utm_source" class="enquiry-form-show_1" value="Features"> <input type="hidden" name="utm_term" class="enquiry-form-show_1" value="download_company_profile_sample"> <input type="hidden" name="utm_content" class="enquiry-form-show_1" value="Chatbots in retail: nine companies using AI to improve customer experience"> <div class="submit-button-container"> <button id="form-submit-btn" class="form-submit__button button primary solid"> Submit and download</button> </div> <span class="inline" for="consent">Visit our <a href="https://www.verdict.co.uk/privacy-policy/" target="_blank">Privacy Policy</a> for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.</span> </div> </form> </div> </div> </div> </div> <h3>Tommy Hilfiger</h3> <p>American apparel and accessories brand Tommy Hilfiger, has released a chatbot on Facebook Messenger. On opening the conversation, the chatbot greets the user, then instantly introduces the consumer to the collection and gives them three options for the conversation: style advice, browsing, or a behind-the-scenes look at the latest fashion show. The chatbot deals with customer queries by not only proposing a list of options to choose from but also demonstrating great language processing abilities. The bot reacts to keywords typed by customers and offers solutions. Customers are presented with an opportunity to browse by either looks or categories, such as accessories or bags.</p> <h3>Sephora</h3> <p>France-headquartered international personal care and beauty stores chain Sephora introduced its chatbot on messenger service Kik. The first time a shopper starts a conversation with the chatbot they are invited to take part in a short quiz that helps the bot learn more about them. Users can then ask for tips or reviews on specific types of product or application. Each of these comes with product recommendations that the customer can shop for without leaving Kik. The experience aims to mimic the way the shopper might chat with their friends about products and advice. Sephora’s chatbot is not designed to deal with customer’s queries, but instead provides customers with other opportunities like the ability to book a makeover by simply clicking on ‘Book a Makeover’.</p><div id="slot-two"></div> <h3>Burberry</h3> <p>Like many other chatbots in retail, luxury clothing brand Burberry’s bot was introduced on Facebook Messenger. By sharing their location, users can be informed where their nearest <a href="https://www.globaldata.com/data-insights/retail/number-of-burberry-stores-/" target="_blank" rel="noopener">Burberry store</a> is. The chatbot also introduces customers to the brand’s latest collection of bags; by clicking the ‘Discover More’ option, the chatbot lets users browse the collection, get to know more about the craftsmanship, or find out how to style a bag with Burberry’s apparel and accessories. Burberry’s chatbot offers pre-made suggestions that guide users through their shopping experience. The chatbot has been evolving since the 2016 launch; in November 2017 Burberry introduced options to explore gifts and pre-order pieces, while in February 2018 it started to invite its Facebook fans to follow Burberry’s runway show live.</p> <h3>eBay</h3> <p>In October 2016, <a href="https://www.globaldata.com/company-profile/eBay-Inc/">e-commerce retailer eBay</a> released its Facebook Messenger chatbot ShopBot. <a href="https://www.globaldata.com/store/report/?cdmsid=1156495&scalar=true&utm_source=Features&utm_medium=18-10614&utm_campaign=company-profile-hyperlink-nonlgp" target="_blank">eBay</a> first started using chatbot technology by piloting a simple Facebook Messenger tool that reminds bidders 15 minutes before an auction listing is about to end. After this initial success, eBay expanded the ShopBot, which now understands what users are looking for by processing their text messages and images to find the best match. Since then, the chatbot has been praised for its excellent contextual understanding and machine learning abilities as well as its use of friendly language. Reportedly, ShopBot users are nearly three times more likely to ask questions about specific products than those browsing eBay’s inventory.</p> <h3>Whole Foods</h3> <p>US-based healthy food supermarket chain Whole Foods introduced a chatbot to make finding a supermarket easy. Customers can enter a zip code or an address, or simply share their location to get results immediately. The grocer is using the Facebook Messenger chatbot to make finding the ingredients people want easier. Shoppers can use the chatbot to ask for recipes and to find where products are positioned in the store. For those with special dietary restrictions, the chatbot can also consider those and help them find foods and meals that leave a particular ingredient out. Unlike other chatbots in retail, Whole Foods bot aims to improve customers experience in store, not just online.</p> <h3>Lidl</h3> <p>The discount supermarket chain<a href="https://www.drinks-insight-network.com/news/lidl-launches-facebook-chatbot-aid-wine-selection/"> Lidl introduced conversational chatbot Margot</a> on Facebook Messenger that understands natural language and helps shoppers get the best out of its wine range. Margot is more conversational than other chatbots in retail and helps users in various ways; for example, it helps to find wines by country, region, grape, colour and/or price. It also gives users tips on food pairings and tests their knowledge with a quiz. After the chatbot was released, users took to social media to praise how good and accurate the bot is.</p> <h3>Co-operative Group</h3> <p>The Co-operative Group Co-op) launched its pricing estimate chatbot for the UK car insurance industry on Facebook Messenger. The chatbot uses four multiple-choice questions that help it estimate the insurance price within 30 seconds. It then links the user to the Co-operative Insurance website where customers can enter more details and find out the final price estimate, which may differ from the original estimate. Co-op uses the bot to drive customers towards the company’s websites and social media sites to increase interaction and traffic.</p> <div id="Sgpollsputhere"></div> <div class="sponsored-whitepaper sponsored hidden sponsored-with-form"> <div class="sponsored-whitepaper-container grid-x" id="whitepaper_form"> <div class="content small-9"GD50 Explorer"> <h4>Free Report</h4><h3>Walmart: Going Beyond Company Disclosures </h3> <div id="vms_description" class="buyers-guide__description">Walmart has rounded out its fiscal year with a strong set of numbers that show it has taken supply chain disruption, rising costs, heavy inflation, and various other problems in its stride. 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data-countryCode="ID" value="62">Indonesia (+62)</option> <option data-countryCode="IR" value="98">Iran (+98)</option> <option data-countryCode="IQ" value="964">Iraq (+964)</option> <option data-countryCode="IE" value="353">Ireland (+353)</option> <option data-countryCode="IL" value="972">Israel (+972)</option> <option data-countryCode="IT" value="39">Italy (+39)</option> <option data-countryCode="JM" value="1876">Jamaica (+1876)</option> <option data-countryCode="JP" value="81">Japan (+81)</option> <option data-countryCode="JO" value="962">Jordan (+962)</option> <option data-countryCode="KZ" value="7">Kazakhstan (+7)</option> <option data-countryCode="KE" value="254">Kenya (+254)</option> <option data-countryCode="KI" value="686">Kiribati (+686)</option> <option data-countryCode="KP" value="850">Korea North (+850)</option> <option data-countryCode="KR" value="82">Korea South (+82)</option> <option data-countryCode="KW" value="965">Kuwait (+965)</option> <option data-countryCode="KG" 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data-countryCode="MN" value="95">Myanmar (+95)</option> <option data-countryCode="NA" value="264">Namibia (+264)</option> <option data-countryCode="NR" value="674">Nauru (+674)</option> <option data-countryCode="NP" value="977">Nepal (+977)</option> <option data-countryCode="NL" value="31">Netherlands (+31)</option> <option data-countryCode="NC" value="687">New Caledonia (+687)</option> <option data-countryCode="NZ" value="64">New Zealand (+64)</option> <option data-countryCode="NI" value="505">Nicaragua (+505)</option> <option data-countryCode="NE" value="227">Niger (+227)</option> <option data-countryCode="NG" value="234">Nigeria (+234)</option> <option data-countryCode="NU" value="683">Niue (+683)</option> <option data-countryCode="NF" value="672">Norfolk Islands (+672)</option> <option data-countryCode="NP" value="670">Northern Marianas (+670)</option> <option data-countryCode="NO" value="47">Norway (+47)</option> <option data-countryCode="OM" value="968">Oman (+968)</option> 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