Hi There,

With holidays around the corner, our team has been engaged in more product demos than before. All businesses that I speak with, are ensuring that they are well-prepared for the ongoing festival season, and one prominent reason is the anticipated demand surge.

In 2023, retailers witnessed a 72% increase in online sales during Diwali. As good as it sounds, it also poses critical challenges for businesses especially when their team isn’t readily available. Limited scalable capacity of the customer support team, delays in response time, and an increase in churn rate are a few of those challenges.

Lego figured out a creative way to deal with the increased surge during festive seasons. They launched a shopping Chatbot to handle increased traffic and assist people with purchases. The response they received was overwhelmingly positive.

Today, we are deciphering the working mechanism of their chatbot and how it can be improved with GenAI.

Diagnosing Lego's Holiday Chatbot

Lego launched a chatbot when it was an up-and-coming technology with limited use case. But back then it perfectly fit their needs. This is how their chatbot functioned:

• Shoppers could enter their kid’s age and interests to receive a personalized list of products.
• They can swipe through the list and read more about the products.
• They can either buy the toy online or view the list of offline stores where the selected toy is in stock.

Results:

• The average session length was over 2 minutes.
• The interaction rate was 4x higher than the industry average.
• Witnessed a 77% uplift in sales.
  

The reason this worked out so perfectly was that people didn’t have to spend hours browsing through the website to decide. It also simplified their purchasing process and erased the need to play catch-up with the support team.

What could have been better?

Although the results exceeded Lego’s expectations, customer expectations have come a long way since then. With an overwhelming amount of choices at a cheaper price, the focus has shifted from serving the demand to creating it.

And this is where conversational AI plays an important role. While Lego’s chatbot only recommended products based on pre-defined options, a GenAI Chatbot could steer the conversation to provide personalized recommendations and create new demands.

Additionally, a GenAI Chatbot can:

• Analyze past purchases and activities to naturally upsell or cross-sell products.
• Learn from customer interactions to identify trends and purchase behavior, and continuously evolve to provide better assistance.
• Send follow-up messages to reengage customers and reduce bounce rates.
• Handle high demand and thousands of concurrent users without compromising on the quality of conversations.
  

All of this is not limited to e-commerce especially when the manpower is compromised during holidays. Businesses from across industries can leverage GenAI chatbots to overtake conversations, drive conversions, and nurture leads.

And we can help you get started in just 15 minutes. With our pre-built UI and business logic, you can deploy a fully functional GenAI Chatbot into your existing app or website. If you’d like to witness our Chatbot in action, let’s connect.

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