Salesforce reported that during the 2024 Christmas season, chatbots driven by Artificial Intelligence (AI) assisted customers in making purchases and returns, increasing online sales in the US by about 4% annually.
Retailers used chatbots, or clever conversational customer service, in addition to targeted marketing, product recommendations, and loyalty programs, to sway consumers looking for the newest trends and the best deals.
In the United States, online sales increased from $272 billion to $282 billion between November 1 and; December 31, surpassing Salesforce’s prediction of 2% growth despite reduced reductions.
Salesforce found that, based on data from 1.6 trillion page views on its platform, shoppers were using AI-based chatbot services 42% more than they were a year earlier.
Global internet sales driven by AI increased from $199 billion in 2023 to $229 billion between November 1 and December 31, according to the report. However, a high consumer return rate of 28%, up from 20% in 2023, was a “significant concern” and might lower retailers’ total profit margins, according to Caila Schwartz, Director of Salesforce’s Consumer Insights.
According to the Director of Consumer Insights: “Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year as retailers aim to minimize revenue losses on returns and re-engage with shoppers.”
According to the survey accessed by BrandSpur digital news platform, around 79% of all orders placed throughout the holiday season were placed using mobile devices, with the highest number of smartphone orders occurring on Christmas Day as consumers went shopping at the last minute.
In addition to artificial intelligence, businesses leveraged social media platforms like Instagram and TikTok Shop to spark interest; in fact, social media accounts for 14% of all e-commerce site traffic.
