AI chatbots are rapidly expanding their applications in the e-commerce field and becoming a new channel for many US e-commerce companies to attract customers. According to reports, the company Logikcull has been able to generate $100,000 in monthly revenue using ChatGPT.
Traditional search engine optimization and paid advertising are no longer sufficient to meet the needs of businesses in securing top positions in search results and gaining traffic advantages. The rapid development of ChatGPT has broken through this limitation and brought new sales opportunities for enterprises.
Logikcull, a legal technology company, used to rely mainly on phone communication to generate orders. However, in March of this year, a customer discovered the company through ChatGPT, and since then, an increasing number of new customers have found Logikcull through this method. Andy Wilson, the founder and CEO of Logikcull, stated, "We believe that ChatGPT will bring us $100,000 in monthly subscription revenue." He estimates that in the past 60 days, 5% of Logikcull's sales leads have come from answers generated by ChatGPT.
Apart from Logikcull, other companies are also generating sales leads through AI chatbots. Fairing, a New York-based e-commerce brand data and research platform, mentions that several dozen of their clients have seen recommendations for ChatGPT in user surveys. Matt Bahr, the founder and CEO of Fairing, believes that ChatGPT has brought surprises, serving as both a shopping assistant for consumers and a sales lead generator for companies.
Currently, the percentage of sales generated from answers provided by ChatGPT is relatively low, below the 5% achieved by Logikcull, as reported by Fairing's clients. However, similar to social media platforms, companies that adapt their marketing and website to be chatbot-friendly will reap the greatest benefits.
The rapid development of artificial intelligence signals a transformation in the field of search engine optimization and presents opportunities for e-commerce entrepreneurs. Google and Microsoft are competing to embed chat programs based on large language models into their search products, and even renaming search engines as "answer engines."
For brands, it is important to pay attention to the generation of AI answers in search engines and monitor brand mentions on third-party review websites and search results. Brands can solicit positive reviews from satisfied customers to enhance product ratings and review quality, thus maximizing their presence on platforms such as ChatGPT, Bing Chat, and Google Bard.