BUZZ BEAT MEDIA

ZALORA, Asia’s leading fashion and lifestyle e-commerce platform and part of Global Fashion Group (GFG), is proud to announce the launch of our AI-powered customer service chatbot, designed to provide seamless and personalised support to customers across Singapore, Malaysia, Philippines, Indonesia, Hong Kong and Taiwan.

An Intelligent Chatbot That Provides Personalised Support

Launched in early 2024, ZALORA’s new Customer Service AI-powered chatbot is the result of a
partnership between ZALORA’s technology team and Forethought, a leading provider of customer-first AI
experiences.

The chatbot leverages AI that is programmed to learn and understand the intent behind customer
inquiries, to provide relevant, accurate responses in a highly intuitive and visual format. For simple
queries, it leverages generative AI and draws from an ever-growing comprehensive knowledge base of
FAQs, while for more complex questions, it utilizes natural language processing to grasp the customers’
intentions before providing useful answers. The chatbot can adapt and respond to any language
communicated with it, for instance, an entire conversation can be started in English and ended in
Mandarin or any of the local languages seamlessly.

The biggest difference between ZALORA’s new chatbot and standard industry counterparts is its deep
integration with our consumer core services. This means, once customers sign into their ZALORA
shopping profiles, the chatbot can directly access and offer personalised information linked to their
accounts, this includes information about the status of their orders, deliveries, and returns.

Knowing customers don’t always recall their order IDs, the chatbot’s easy to understand UI concept
presents purchases intuitively with pictures of individual items within each order. This is especially
important to our ZALORA VIP customers who can easily navigate and sort through multiple orders.

Supporting Human Customer Service Capabilities

In addition to delivering a seamless customer experience, the chatbot is envisioned to support and
augment the capabilities of our human customer service representative. Across the eCommerce industry, millions of customer service inquiries have to be answered each year, which traditionally requires a human customer representative to address.

Since the launch of our highly intuitive customer service chatbot, ZALORA’s deflection rate has improved
by 30% since launch, which exceeds our early targets. This means more questions can be answered by
the AI-powered chatbot without the need for human assistance. For more complex enquiries, the chatbot
will provide a summary of the conversation and hand it over to a human customer service representative
if they need to step-in for further support.

This ensures shoppers need not restate the details of their conversation, which allows for a seamless
customer service experience while also providing cost savings and time for our invaluable human
representatives to focus on providing excellent personalised service to ZVIP customers and handling
nuanced challenges that require human touch and understanding.

Proven Results and Continuous Improvement

The chatbot has already demonstrated its effectiveness, adding to our excellent customer experience
proposition and has enabled our customer service teams to achieve upwards of 20% YoY improvements
in Customer Satisfaction Score (CSAT) for markets like Singapore and Hong Kong, above our previous
chatbot channels, and a Net Promoter Score (NPS) of over 80%, which is among the highest in the
eCommerce industry, driving the best-in class customer experience. ZALORA plans to further integrate
the chatbot into core services and explore new use-cases, ensuring a constantly improving superior
online shopping experience for customers.

“As a fashion company at heart, we want to help our customers discover great products and brands that
make them feel great and confident. ZALORA is known and loved for its industry-best customer service
and we’re continuously exploring ways to improve that experience, especially in a more scalable and
digital-first way.

The innovation around Generative AI and Large Language Models (LLMs) has given us access to more
capabilities and partnerships to deliver experiences to give our customers an elevated fashion shopping
experience,” shared Liam Hutchinson, Director of Product, ZALORA Group.

“The chatbot sits as part of our broader investments in automation & artificial intelligence under TITAN,
our proprietary platform intended to lead Fashion eCommerce innovation in maintaining a safe and
seamless experience for customers and taking the online shopping experience to the next level,” added
Sumit Jain, Chief Technology Officer, ZALORA Group

With Artificial Intelligence (AI) transforming how we live and interact, particularly in the realm of retail and
eCommerce, ZALORA is committed to continuously embracing cutting-edge technologies to improve our
customers’ journeys and experiences, ensuring we remain at the forefront of delivering exceptional
service across all our touch points.

*Cover Photo/Thumbnail Photo from Zalora