Hiday chatbot firm secures $5.1 million fundraising round
AI-powered chatbots are revolutionising the retail industry, offering a myriad of benefits from enhancing customer interactions to driving sales. One such company at the forefront of this transformation is Heyday, an AI-powered customer messaging company.
Enhancing Customer Engagement and Sales
Heyday's AI chatbots are being utilised for customer service, offering personalised product suggestions and streamlining the purchasing process. This has led to a significant increase in conversion rates, with shoppers who engage with Heyday's chatbots showing a fourfold increase in purchases compared to those who do not [2].
Wide Adoption and Impact
A significant portion of companies are either using or testing AI. According to a recent survey, 89% of companies are involved in AI implementation, focusing on areas like customer engagement and predictive analytics [2]. Heyday is one of these companies, and its success is evident in its growth. The company has raised $6.5 million CAD ($5.1 million) in a fundraise led by Innovobot and Desjardins Capital [1].
Future Developments
Looking ahead, AI-powered chatbots in retail are expected to evolve significantly. Generative AI will enhance chatbots with emotional intelligence, enabling them to adapt responses based on sentiment analysis. This will lead to more empathetic and personalised interactions, fostering stronger customer relationships [4].
The integration of AI with AR/VR and voice assistants will create immersive shopping experiences, allowing for virtual try-ons and voice-enabled purchases. Heyday is aiming to bring this retail store experience into people's living rooms via text-based and video chat, bridging the gap between online and offline channels [1].
International Expansion and Growth
Heyday's enterprise client roster has grown by more than 60% and doubled its recurring revenue over the last two quarters. The company's international clientele now spans 77 countries, demonstrating its global appeal [1].
Notable Clients and Partnerships
Heyday's clientele includes notable retailers and brands such as French sporting goods company Decathlon, Danish fashion brand Bestseller, and luxury apparel brand Lacoste [1]. The company has also partnered with major platforms like Google, with H&M integrating its virtual assistant and chat services into Google tools last fall [1].
David's Bridal debuted its chatbot Zoey in January 2020 to streamline customer inquiries and connect them with stylists [1]. The company plans to use the capital for international expansion, growth acceleration, and preparation for a Series A funding round later this year.
The pandemic is cited as a catalyst for accelerating retail's digital shift towards e-commerce for Heyday. Retailers are seeking new ways to bring their in-store experience online through digital channels, including messaging apps [1]. According to a March 2020 report from Juniper Research, purchases through chatbots could reach $142 billion by 2024, a significant increase from $2.8 billion in 2019 [1].
In conclusion, AI-powered chatbots are transforming the retail landscape, and companies like Heyday are leading the way. By leveraging AI, these companies can enhance customer experiences, improve operational efficiency, and increase sales. They can focus on integrating generative AI for more personalised interactions and exploring immersive shopping experiences to stay competitive in the market.
- The integration of AI technology will revolutionize retail, as generative AI enhances chatbots with emotional intelligence, providing personalized and empathetic customer interactions.
- Heyday's success in using AI chatbots for customer service has resulted in a fourfold increase in purchases among engaging shoppers, as reported in a survey involving 89% of companies focusing on AI implementation for customer engagement and predictive analytics.
- In light of the pandemic, retailers are turning to digital channels, including messaging apps, to replicate their in-store experiences online, with chatbot sales projected to reach $142 billion by 2024, up from $2.8 billion in 2019.
- Heyday's global appeal is evident in its international clientele spanning 77 countries, providing its services to renowned retailers such as Decathlon, Bestseller, and Lacoste, as well as partnering with major platforms like Google.
- AI-driven chatbots will further evolve and offer immersive shopping experiences by integrating AR/VR and voice assistants, allowing shoppers to virtually try on products and make voice-enabled purchases, as emphasized by Heyday's plans to bring such experiences into living rooms via text and video chat.
