How our ChatGPT / Shopify Chatbot Increased Sales 400%

According to a study from CNBC, Cognizant, VentureBeat, Forbes, IBM and AccentureDigital, an AI chatbot will increase sales by an average of 67%.

These numbers were the industry average before ChatGPT, and other Large Language Models (LLM) were released for the public. Now we’re in new waters, and these numbers might not be as relevant today, as they were at the time they conducted the research.

We therefore saw an obligation to measure our impact for our clients using our AI chatbot, in both sales, traffic, engagement time and conversion rates. The numbers were surprising to say the least.

Club de Mode increased sales by 400% using our ChatGPT chatbot with our E-commerce integration

Read the detailed data breakdown below to scrutinize our calculations.

• Read the details how an AINIRO chatbot incresed sales by 400%

How the chatbot increased sales 4x

Implementing an AI Chatbot onto your website, resulting in a notable 400% increase in sales, may initially appear fantastical. However, because of an accidental bug in our chatbot - and no increase in traffic, we can see with clarity that the chatbot indeed is the factor which increased the overall revenue by 4 times.

It's important to note that we don't promise a 400% boost in sales for everyone. Club de Mode was a particularly fitting example since they sell high-end items that many people might find expensive. Also, a good number of their visitors might just be casually browsing. In such cases, the chatbot can play a role in building trust and persuading visitors to make purchases they might not have considered otherwise.

• Test the Club de Mode chatbot

Now let me walk you through some of the decisions we made as we implemented Club de Mode's AI chatbot. These are some of the steps, and psychology we used to produce the above results for our client.

Step 1. Personal approach

First of all, when you start your first chat session with Club de Mode's AI chatbot it will ask you for your name. It will use your name in its conversation with you, and even remember it if you come back 3 months later.

Using someone's name shows respect, acknowledgement, and personal connection. Remembering your name becomes like "a subconscious compliment". This is a trick you will hear daily by telemarketers and car sales people, or other sales related businesses.

By using the prospect's name, and attaching to cultural identities, and native language, psychological rapport is immediately established, resulting in trust. This isn't anything new, merchants everywhere in the world have been using this method for centuries as they try to convince us into buying whatever they're selling.

Step 2. Show what they will get

In addition our chatbot can show product images. Studies show that people take in 80% of what they see and 20% of what they read. One product image (compared to text-only) increase conversion-rates by 100%, two images further increases conversions by 100%. Each product images you display doubles previous conversion. In theory this implies that if you can show 4 product images you could in theory sell 1,600% more product than without any images.

Step 3. Play on scarcity

In Dan Ariely’s book, Predictably Irrational- backed by several social experiments, he describes how standing in line – and scarcity helps sell a product. A customer might think that a product, offer, or piece of content is difficult to get because it's so valuable that people keep buying it. This can cause them to take quick action and purchase before time runs out because they want to experience the same value as their peers.

Since our chatbot technology allows us to fetch semantic data from E-commerce software using their API, it allows us to know quantity and stock, in addition to details about price and savings. Watch how the chatbot plays upon scarcity in the image below.

We are continously refining this effect by displaying how many items exactly are left in stock, in addition to illustrating how much the user saves on buying at this particular site.

Step 4. A special offer, just for you

This has arguably little to do with us, but is about Club de Mode's business model. Their slogan is roughly "Luxury items for 70% off". But what we've done is to remind the user of this fact to an extent where it becomes impossible to miss.

Simply saying "Hi" to the chatbot will repeat to the user that he or she saves 70% by shopping at Club de Mode. This effect combined with scarcity creates a feeling of "urgency", where the visitor becomes afraid of missing out on something important that is only available for a short amount of time. In fact, this is almost so true that when you go to North Africa there's a joke about this effect that goes as follows.

Special price for you my friend ...

Of course, the special price is no more special for you than it is for everybody else, and the merchant is not your friend, and arguably doesn't care much about you - But once rapport is established, you will believe he is your friend, and you will believe you're getting a special price.

And as he serves you tea, asks you about your sports team, and repeats a couple of sentences in your native language, while addressing you by your name - chances are you will be more interested in hearing the offer!

Step 5. Create emotional debt

The above is a word I have invented myself, but I didn't invent the idea. The idea has been in use in the Middle East and North Africa for millenniums amongst "super human sales executives", selling you perfume, magic carpets, and other tourist things.

This is why the merchant will address you by name, cheer for your fotball team, say some phrases in your native language, and discuss your home town. The merchant is putting you into emotional debt where he makes you feel "special", resulting in a need to reciproctate.

You end up in a situation where you feel you owe it to the merchant to buy from him.

If you haven't been to North Africa or the Middle East you might probably never understand what I mean with the above, but believe me, you will fall for it!

Conclusion

The graphic above pictures when we implemented the chatbot, and the results that followed afterwards.

Have a Custom AI Solution

At AINIRO we specialise in delivering custom AI solutions and AI chatbots with AI agent features. If you want to talk to us about how we can help you implement your next custom AI solution, you can reach out to us below.

• Contact AINIRO