From bricks to clicks: how chatbox Charly is redefining customer service in Merchantland

What started with a link forwarded by a partner grew into a strategic AI project at the Swiss construction wholesaler HGC: the implementation of Chatbot Charly. This virtual assistant really understands what a customer is asking and can answer in all possible languages.

Traditional chatbots have been around for years. They are designed to prevent customers with simple questions from occupying the telephone service desk. However, they fall short when it comes to providing personalised and complex support – an area in which AI chatbots are gaining ground, thanks to machine learning and natural language processing. For instance, an AI chatbot can interpret the intent behind the question, understand its context and generate dynamic, human-like responses – all automatically and in any language.

The story began around two years ago. Thomas Schwarz, Digital Product Owner of HGC’s digital customer platform, received a link to one of the first AI chatbots, called Jumbot. ‘I clicked on it and was immediately excited: this was much better than we what were used to. Not a classic FAQ bot, but a conversation partner that really understands you. We wanted that too.’ What followed was an accelerated digital transformation beyond customer communication.

 ‘We instantly realised that if we could implement this within our e-commerce environment, we could make a big leap in customer engagement,’ says Schwarz. ‘And the great thing was: it wasn’t purely experimental. This solution was already working, we just had to adapt it to our world.’

The implementation started with a pilot in a closed demo environment. ‘We tested it internally, gathered feedback, and then rolled it out step by step,’ says Schwarz. Within two months, Charly was live on the website. Customers could ask questions about products, availability, instructions and consultation – and got immediate answers. ‘We wanted Charly to be more than a glorified search engine.’

A key success factor, according to Schwarz: ‘We not only integrate Charly technically, but also positioned her as a brand.’ The chatbot was given a picture, a name, a voice, and a distinct personality. ‘We really see Charly as part of our team. Internally, we call her our digital colleague.’

But Charly was just the beginning. HGC soon saw that artificial intelligence could have much broader applications. ‘We suddenly had an AI solution in house that worked well. But then you start getting questions: Could we also use this for internal processes? Could we link other models to, say, invoice processing or product management?’

Of course, all this is possible with AI, which seems to make programming new applications faster and simpler than ever. Unfortunately, the current abundance of AI tools also brings a new problem: ‘At one point, we had six different AI solutions from different vendors. All good, but also all with their own costs, licences and maintenance. That started to become inefficient.’

That is why HGC is now working on a broader AI strategy. ‘We realise that we cannot keep implementing separate use cases endlessly. We need to make choices, prioritise and also build internal knowledge,’ Schwarz said. A key element in this is to make sure, that all AI initiatives need to come together and that someone in the company needs to take the lead and keep an overview of all applications.’

The cost of AI is also a concern. ‘Using AI is not free. Licences, implementations, training – it all adds up. So we always have to look critically: what does it deliver, and at what cost?’

Another important part of the new strategy will be the wider dissemination of AI skills within the organisation. ‘AI should not remain a playground of the IT department. Everyone must learn to work with it – from the salesperson to the sales representative on the construction site.’

As a first step, HGC is considering training around 100 employees via the online learning platform of the Management School of St Gallen (80 kilometres east of Zurich). This business school specialises in AI. ‘The platform offers not only training but also hands-on labs and innovation projects,’ says Schwarz. ‘Employees thus learn not only how AI works, but also how to apply it in their daily work.’

The key question, of course, remains: is Charly worth the investement? According to Schwarz, the answer is somewhat nuanced. ‘If you look solely at the extra turnover Charly generates – say,  when customers place products in their shopping cart via the chatbot – the answer for now is: no, it does not yet cover the costs.’

In practice, customers not always use Charly for complex queries. The most frequently asked question is whether a certain product is in stock at a certain HGC-branch. ‘That is a somewhat disappointing finding,’ says Schwarz. ‘Especially since we have not yet linked our stock management system to the chatbot. But we need to take a broader perspective. Thanks to Charly, we have strengthened our digital reputation. We are seen as an innovative company, leading the way. That also affects our brand value.’

Moreover, indirect revenue is harder to quantify. ‘Our e-commerce revenues have grown significantly in recent years. This is due to several factors and Charly is definitely part of our digital progress.’

One of the main reasons the chatbot was implemented smoothly, Schwarz says, was the digital infrastructure already in place. ‘We already had our data in order, and our systems were ready for integration. Without such foundations, you can’t deploy AI successfully.’

He advises other companies similarly:  ‘Before launching AI, make sure your data, systems and digital processes are up to a good standard. Without this, you will never unlock AI’s full potential.’

Looking back, Schwarz is pleased with the project. ‘We are happy we took this step. Not just because of Charly, but because it made us reflect on our digital future.’

He ends with a clear message: ‘AI is here to stay. It is not hype, but a structural development. As a company, you now have to make the choice: do you want to be ahead or fall behind?’ For HGC, the answer is clear. With Charly by their side, they are fully committed to a future where technology, customer focus and human creativity go hand in hand.

Try chatbot Charly for yourself! Visit HGC’s website.