Retailers are using Nibble in different ways, such as to clear unwanted inventory without announcing big sales, to boost conversion rates, or to encourage customers to add more items to their carts. Each retailer sets the parameters for the chatbot, allowing it to offer certain discounts or perks like free shipping to secure a sale. The hope is that they can make a sale at a price they wouldn't have otherwise achieved. Nibble plans to add generative AI functionality next month to make the chatbot more conversational.
Key takeaways:
- More than 300 brands and retailers are using Nibble, an AI-powered chatbot that allows shoppers to negotiate for lower prices online.
- Iconic London, a makeup brand, tested the chatbot and found that average order values increased by 50% even though most customers accepted discounts in the single digits.
- Nibble, which was started in 2020, takes a 2% cut of sales and has raised more than $3 million in funding. It has been deployed by brands selling a range of products, from jewelry and clothing to furniture and car parts.
- Some retailers use Nibble to quietly get rid of unwanted inventory, while others use it to boost conversion rates or persuade customers to add more items to their cart in a targeted manner that doesn't ruin margins.