How Retailers Are Using Chatbots?

Cheuk Hung Lo
Marketing in the Age of Digital
3 min readDec 5, 2021

When you ask for recommendations on where to buy a nice piece of outfit, H&M will definitely be one of the answers.

Photo source: Today.com

A brand that is being known globally, H&M was founded in 1947. In 2021, the brand is 74 years old. From 1947 when the brand was established, in 1998, H&M started offering online shopping. Despite all the changes and improvements, H&M is not ready to stop. To follow the market trend, H&M launched a chatbot in 2018.

Photo Source: Technology Advice

Introduction of Chatbot

The first-ever chatbot was developed in 1966 by MIT Artificial Intelligence Laboratory. The chatbot was named Eliza, which was designed to imitate a therapist who would ask open-ended questions and even respond with follow-ups.

In 2009, WeChat created an advanced chatbot that is to interact with customers online. The creation of a chatbot to communicate with customers helps to reduce the work of marketers and employees.

These days, not only WeChat but also retailers like Tommy Hilfiger, Sephora, and H&M are using a chatbot in customer service.

Talk To The Chatbot To Get Your Inquiries Answered

As same as other retailers, H&M is using a chatbot in customer service to assist customers with their inquiries.

H&M chatbot captured from H&M app

The H&M chatbot also betters customers’ shopping experience. The chatbot searches through outfit possibilities and guides customers to the online store areas that align with the item they are looking for. H&M chatbot is not only provided through its website but also through Kik. The chatbot on Kik can create style profiles for customers with the personal stylist service that H&M provides through their chatbot.

For customers who do not know how to choose the right piece of outfits for themselves and look for advice, the chatbot will be helpful. Since the chatbot guides customers to the page where the right piece of outfit can be found on H&M’s website, this encourages customers to make purchases with H&M.

Providing good customer service is one of the ways to bring in more sales. As customers want their questions to be answered right away, regardless of the time. It appears that the use of a chatbot by H&M is not only able to maintain its reputation but also encourage its current customers to spread the word to other potential customers.

A Chatbot Is A Trend

A chatbot is commonly used by a lot of companies to provide outstanding customer service because a chatbot can handle customers’ inquiries 24/7, without any break. With the questions that can be answered at any time, customers feel secure to shop with the retailer. Customers have positive feedback on the chatbot and they are willing to be served by a chatbot as long as the issues can be solved quickly. Statista showed that 72% of the interviewees stated that their experience with chatbots was helpful and informative. Moreover, chatbots are popular among younger generations. Millennials like to handle issues on their own, and chatbots turn out to be the perfect solution.

Not only customers like chatbots but also retailers because of the advantages:

With the increasing popularity of chatbots among customers and the benefits of using chatbots in customer service, it is expected that the use of chatbots will be more common.

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Cheuk Hung Lo
Marketing in the Age of Digital

Graduate Student at NYU in Integrated Marketing | Sales Rep at Korean Air