Australians can reduce costs for online shops with groundbreaking tool: “Win-Win”
More than a dozen Australian retailers have launched an AI chatbot that allows online shoppers to get a better price than the one advertised. Haggling used to be something you only did in certain countries, and some brands here gave a few dollars off when you bought something in-store.
But the chatbot Nibble has brought this exchange concept into the online world. Nibble’s head of conversation design, Tim Willers, said Yahoo Finance You should be prepared to haggle hard when you encounter the chatbot.
“Nibble was developed by a team of academically trained experts in negotiation, behavioral science and conversation design,” he explained.
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“Our negotiation algorithm has been trained on over a million negotiations and the AI chatbot is designed to find a win-win deal where both the customer and the buyer compromise to reach a price that suits both sides.”
An online shopper posted a video of his interaction with Nibble while trying to purchase a pair of shorts. The advertised price was $69.50 and after clicking on the Nibble chatbot, the price immediately dropped to $55.
But Elliott managed to negotiate the final price down to $45.
“I think it’s easier to negotiate online than with a real person,” he said while discussing the price with Nibble.
“It’s difficult to negotiate in real life, but online I can do it all day long.”
He said the Nibble chatbot could be a bit “cheeky” at times because during haggling it would reveal that the money it was spending would go to a mental health charity.
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But what does the retailer get out of it?
Willers said Yahoo Finance that Nibble improves conversion by at least 20 percent and can protect brands from “over-discounting.”
Australian fishing shop Addict Tackle has recently started using Nibble and is impressed with its performance.
“We are known for working with our clients to find the best possible deal,” said Chris Martin, Digital Marketer at Addict Tackle, Yahoo Finance.
“People like to come to us because we treat them humanely and provide competent advice.
“I’ve always tried to find ways we can emulate that in an online environment, and Nibble does just that for us.”
Even though it may be an AI-powered chatbot, Martin says it adds a personal touch to online shopping.
“Regardless of whether we have seen an increase in sales value thanks to Nibble, I have definitely seen an increase in brand awareness and brand loyalty in the feedback we have received,” he added.
Martin said it also gives them valuable data on how customers feel about the prices of their products and allows them to adjust accordingly in the future.
Nibble currently has around 200 retailers on its books, including big names such as Chubbies Shorts, ASOS, Nectar and ICONIC London.
In Australia, thirteen brands have registered, including Addict Tackle, Cook & Bathe and Makeup Mirror.
Some retailers keep the chatbot enabled all the time, while others use it occasionally instead of running flash sales.
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