Five ways retailers can effectively use ChatGPT
By Kirsty Bisset, HYH Durban MD. How retailers can effectively use artificial intelligence like ChatGPT to connect with their customers and stay current.
By Kirsty Bisset, HYH Durban MD. Generative Pre-Trained Transformer – or GPT – is a product of OpenAI, an artificial intelligence (AI) research and deployment company. Most of us are familiar with one of the products that sit on top of it. That would be ChatGPT, the chatbot interface on websites that allows users to ask questions, and utilises AI to formulate replies.

OpenAI has configured ChatGPT to respond with either technical or non-jargony information and, at the January this year, 13 million individual active users had visited ChatGPT. Its use is growing steadily, and I can see at least five ways retailers can effectively use this AI platform to connect with their customers and stay current.
1. Gathering customer feedback
ChatGPT can gather customer feedback by using natural language processing (NLP) algorithms to analyse customer interactions with the chatbot. These interactions can provide valuable insights into customer preferences, pain points, and areas that need improvement to assist retailers to improve their products and services.
For example, when a customer asks ChatGPT for assistance with a product or service, the chatbot analyses the customer’s language and sentiment to determine their satisfaction. Implementing training programmes to help staff boost customer satisfaction can help increase customer loyalty, as customers are more likely to return to a company that listens to their feedback and makes changes based on their suggestions.
2. Providing product recommendations
ChatGPT can analyse a customer’s browsing history and purchase history (provided that the customer has allowed those permissions) to provide product recommendations. This can help retailers increase sales, as customers are more likely to purchase products that they are interested in. ChatGPT can also offer suggestions based on the customer’s preferences, and provide information about products that the customer may not be aware of. By providing customers with personalised recommendations, retailers can further increase customer satisfaction and loyalty.
3. Personalised customer service
Providing personalised customer service is one of the key benefits of using ChatGPT. ChatGPT can analyse data from a customer’s previous purchases and browsing history to offer personalised product promotions, and discounts. This level of personalisation can help customers feel valued, and as a result, increase brand loyalty. Retailers can use ChatGPT to answer customer queries, provide support, and offer suggestions based on the customer’s interests.
4. Availability 24/7
The ability to provide support across different time zones can be particularly helpful for retailers with a global customer base. Unlike human staff, chatbots are available at any time, and customers can contact them instantly. Retailers can build trust and loyalty by providing always-on support to their customers, as they will know they can rely on the company for support at any time.
5. Streamlining operations
Retailers can also benefit from ChatGPT by streamlining their operations. Retailers can automate customer service tasks, order management, and delivery tracking, thus freeing up staff for more complex work. ChatGPT can also optimise the customer support team’s workload, so they can concentrate on more complex problems. Operational efficiency and response times can be improved as a result.
Overall, ChatGPT can be a valuable tool for retailers seeking to improve efficiency and customer loyalty. To develop stronger relationships with customers, retailers can use ChatGPT to provide personalised customer service, be available 24/7, streamline operations, offer product recommendations, and gather customer feedback. In the future, retailers can expect more innovative applications of ChatGPT to improve their operations and connect with their customers as AI technology continues to develop.
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