Nordstrom launches chatbot for holiday shoppers (JWN)

BI Intelligence

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Nordstrom launched its first chatbot on the Facebook Messenger and Kik messaging services to help holiday shoppers find gift items, Geek Wire reports.

The chatbot helps users select gift items by asking them a series of questions about who they are shopping for. It then chooses gifts from Nordstrom’s online store that match their answers.

Users can also type in a request for gift ideas that are forwarded to Nordstrom customer service representatives who respond with customized gift ideas based on the request. The chatbot will available to consumers up until December 24, and was developed in partnership with Snaps, a New York-based startup that helps brands develop their own chatbots.

Messaging services like Facebook Messenger and Kik have grown more popular than social media apps over the last couple of years, according to BI Intelligence estimates. Together, the messaging services give Nordstrom’s chatbot access to more than 1 billion users, providing an easy way for Nordstrom to reach a massive audience with personalized offers based on their gift-buying needs.

Chatbots are an increasingly popular way to quickly complete customer service interactions with businesses. Nearly half (44%) of consumers would prefer to perform a customer service interaction with a chatbot rather than a human representative, according to a recent survey by Aspect Software Research. Chatbots also drastically reduce the cost of handling customer service queries through automation, making them an appealing option for businesses as well as consumers.

Advancements in artificial intelligence, coupled with the proliferation of messaging apps, are fueling the development of chatbots — software programs that use messaging as the interface through which to carry out any number of tasks, from scheduling a meeting, to reporting weather, to helping users buy a pair of shoes. 

Foreseeing immense potential, businesses are starting to invest heavily in the burgeoning bot economy. A number of brands and publishers have already deployed bots on messaging and collaboration channels, including HP, 1-800-Flowers, and CNN. While the bot revolution is still in the early phase, many believe 2016 will be the year these conversational interactions take off.

Laurie Beaver, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on chatbots that explores the growing and disruptive bot landscape by investigating what bots are, how businesses are leveraging them, and where they will have the biggest impact.

The report outlines the burgeoning bot ecosystem by segment, looks at companies that offer bot-enabling technology, distribution channels, and some of the key third-party bots already on offer. The report also forecasts the potential annual savings that businesses could realize if chatbots replace some of their customer service and sales reps. Finally, it compares the potential of chatbot monetization on a platform like Facebook Messenger against the iOS App Store and Google Play store.

Here are some of the key takeaways:

• AI has reached a stage in which chatbots can have increasingly engaging and human conversations, allowing businesses to leverage the inexpensive and wide-reaching technology to engage with more consumers.
• Chatbots are particularly well suited for mobile — perhaps more so than apps. Messaging is at the heart of the mobile experience, as the rapid adoption of chat apps demonstrates.
• The chatbot ecosystem is already robust, encompassing many different third-party chat bots, native bots, distribution channels, and enabling technology companies. 
• Chatbots could be lucrative for messaging apps and the developers who build bots for these platforms, similar to how app stores have developed into moneymaking ecosystems.  

In full, the report:

• Breaks down the pros and cons of chatbots.
• Explains the different ways businesses can access, utilize, and distribute content via chatbots.
• Forecasts the potential impact chatbots could have for businesses.
• Looks at the potential barriers that could limit the growth, adoption, and use of chatbots.

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of chatbots.