How our ChatGPT / Shopify Chatbot Increased Sales 400%

How our ChatGPT / Shopify Chatbot Increased Sales 400%

According to a study from CNBC, Cognizant, VentureBeat, Forbes, IBM and AccentureDigital from some few years back ago, an AI chatbot will increase sales by 67%. This is the industry average.

We always knew that we would outperform these numbers, because the study was conducted before ChatGPT was available, and because we have taken a lot of additional research into account as we created our ChatGPT website chatbot - But when we saw the numbers we quite frankly had to triple check them to make sure we didn't hallucinate.

Club de Mode increased sales by 400% using our ChatGPT chatbot with our Shopify integration

Read the detailed data breakdown below to scrutinize our calculations.

HOW?

To be honest with you we have absolutely no idea. Installing an AI Chatbot on your website for then to watch sales increase 400% seems like a fairy tale. However as you can read in the above link, we have proves of causation here because of an accidental bug in our chatbot, proving beyond doubt the chatbot was the primary contributor to this effect.

When that is said, we cannot guarantee you 400% increase in sales. Club de Mode was arguably "the perfect use case" since they're selling luxury items, people typically cannot afford - While at the same time many of their visitors are probably "window shopping" at their site, resulting in that the chatbot can convince these into buying products they typically wouldn't buy because of the way an AI chatbot instills trust in general into the visitor.

However, when the above diclaimer is out of the way, let me walk you through some of the decisions we made as we implemented Club de Mode's AI chatbot. Hopefully this might explain why our chatbot seems to produce such fairy tale sales numbers.

1. It knows your name

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 your name if you come back 3 months later, and greet you with your name when you come back.

Addressing people by name significantly increases trust. In addition remembering a person's name implies for other humans that "you made an impression on them". Remembering your name becomes like "a subconscious compliment". This is a trick you will see street salesmen in Egypt and North Africa are using as they try to convince you into shopping at their shop.

If you have ever been to North Africa as a tourist, you will understand what I mean here. Some salesmen in North Africa will teach themselves phrases and sentences in all languages that sends tourists to their country, allowing them to say things such as "So you're from Trondheim Johnny, Rosenborg is my favourite Norwegian soccer team, how are they doing this year?"

By using the person's name, and also attaching to cultural identities, and maybe using a couple of phrases in your native language, psychological rapport is immediately established, resulting in trust, increasing conversions. This isn't anything new, merchants in North Africa have been using this method for centuries as they try to convince us into buying whatever they're selling.

2. It shows images

In addition our chatbot can show product images. One product image increases conversions by 100%, two images further increases conversions by 100%. Each product images you display doubles conversion. Obviously you can't add a million product images and start selling for bajillions, since the effect is probably logarithmical after some 3/5 images - But in theory this implies that if you can show 4 product images you could sell 1,600% more product. Notice that there is research into this subject. This is not something I am making up.

Club de Mode ChatGPT and Shopify Chatbot

3. Scarcity

Scarcity is arguably "the black magic art of marketing". When the iPhone first came out, people would stand in line for days to ensure they got one of the phones because of this effect. There is nothing in this world that results in more desperation to own something than the feeling of that you might miss out due to scarcity.

Since our chatbot technology allows us to fetch semantic data from Shopify using their API, this 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.

Hurry up and buy while still available

Since the above image was taken we have further refined 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.

4. Special price for you my friend

This has arguably nothing 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 you will believe this is "the last carpet made by his mother having worked on it for years, and that it can never be produced again because she passed away 5 years ago, and it was a carpet special for her village, etc".

And as he serves you tea, asks you about your fotball team, and repeats a couple of sentences in your native language, while addressing you by your name - YOU WILL BUY WHATEVER HE SELLS!

As long as you're a human being you simply cannot avoid it! North African merchants have millenniums of experience refining their methods and are arguably "super human sales executives" for products such as these found in their Bazars. The moment you sit down and accepts their tea, you're basically "done for"! The merchant knows at this point there's a 99% statistical probability of that you'll buy, the only remaining question is for "how much" ...

5. 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 in 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!

6. The proof

With this article I have given you something of value. I have taught you something you can leverage in your life if you're working with sales. As I did, I arguably created "emotional debt" in your mind towards me and our products. Now what I want for you to do is to buy one of our chatbots. If you don't understand why, then let me remind you of that it could possibly increase sales on your Shopify website by 400%. Let's repeat the graphic once more such that you can clearly understand the value proposition here.

Shopify sales soaring because of ChatGPT chatbot

If you want the short explanation, summing it up in one sentence, then let me give you a quote you can repeat.

The moment you walk into one of our stores you're basically done for, and we're selling stores 😂

Thomas Hansen

Thomas Hansen I am the CTO of AINIRO.IO AS and the CEO of AINIRO.IO, Ltd. I am a software developer with more than 25 years of experience. I write about Machine Learning, AI, and how to help organizations adopt said technologies. You can follow me on LinkedIn if you want to read more of what I write.

Published 24. Oct 2023

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