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eCommerce and B2B businesses alike are increasingly seeking innovative ways to enhance their customer experience while maintaining profitability. This requires give-and-take, and is something AI negotiation platforms like Nibble are being used for to create mutually beneficial outcomes for both retailers and customers at scale.
What is AI Negotiation?
AI Negotiations use artificial intelligence and pricing algorithms to facilitate pricing discussions between customers and businesses at a scale impossible to achieve manually. Unlike traditional negotiations that require human interaction, take time, and undeniably incorporate some form of bias, AI negotiations allow for instant, automated conversations tailored to individual users. These autonomous negotiations aim to leave both sides feeling satisfied with the outcome–customers secure personalized deals, and businesses maintain control over margins while being able to speak to each customer at scale more effectively.
Why customers love AI Negotiation
Personalized experience: Autonomous negotiations provided a personalized experience without the need to wait for standard blanket promotions or browsing endless discount codes online. Customers can negotiate in real time on their terms, agreeing tailored offers that make them feel valued and heard. This becomes even more useful to those customers who might ordinarily want to speak to a sales agent, but are browsing outside of normal office hours when sales agents are unavailable.
Instant gratification: Unlike conventional negotiations, where buyers may wait hours (or even days) for an answer or counter-offer, AI negotiation can offer instant responses. These quick and seamless interactions foster a sense of engagement and efficiency – did you know, most standard price-based negotiations on Nibble’s negotiation platform take an average of just 62 seconds?
Feeling empowered: The negotiation process empowers customers, giving them a sense of control and agency over their purchases. By participating actively in price discussions, they get a deal uniquely for them – without the drawbacks that come with waiting to negotiate with a live agent.
How retailers benefit from AI Negotiation
Increased conversion rates: Retailers who utilize autonomous negotiation often see an increase in conversion rates. Thanks to built-in A/B testing tools, negotiation platforms like Nibble can demonstrate their impact quickly and effectively.
Profit protection: Unlike blanket discounting, which can damage both brand perception and profit margins, AI negotiation allows retailers to control discounts on a per-customer basis and offer discretionary discounts. With targeted promotions offered to customers who need them the most, retailers protect their margins while still driving sales.
Inventory management: Autonomous negotiations can help retailers clear out slow-moving stock without damaging the perceived quality of the brand or the individual product. By offering dynamic, negotiable pricing, eCommerce brands are able to move more stock quickly and efficiently, thereby reducing warehousing costs.
Brand engagement: The interactive nature of AI negotiation fosters stronger long-term customer relationships. Retailers and create a more engaging and conversational shopping experience on their site, enhancing customer satisfaction and loyalty. By customizing the tone of voice and appearance of the platform, autonomous negotiations can still feel on-brand and natural.
The future of autonomous negotiation
As technology continues to advance, autonomous negotiation is set to become a cornerstone of eCommerce strategies in both DTC and B2B. Retailers will continue to benefit from the enhanced flexibility and efficiency that AI negotiation provides, while customers will enjoy increasingly personalized and responsible shopping experiences tailored to them. Whilst online customer journeys have previously felt particularly one-sided, with the customer having little agency over the pricing and promotions the retailer offers, AI negotiation is opening up conversations previously impossible to have online.
What to read next?
You can read some of our customer stories, showing examples of Nibble reducing discounting, increasing margin and conversion rates, and even boosting AOV.
Or, learn about Nibble's Brand Value Statements that deliver the message your customer or prospect needs to hear at the exact moment they need to hear it to seal the deal.
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