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How Shelly Achieved 8-12x ROI Monthly with AI-Powered Product Guidance

https://shelly.com/

Shelly is a smart home automation company that manufactures Wi-Fi-enabled smart switches and IoT devices for remote control of home appliances and office equipment.

10x
Return on Investment

Story

8-12x ROI, monthly return on investment from improved conversions and reduced customer drop-offs

Key Points

• Eliminated "I don't know what to buy" friction with proactive product suggestions
• Provides instant technical support for home automation compatibility questions
• Guides customers to the right smart switch for their specific setup without human intervention
• Delivers 8-12x monthly ROI through improved conversion rates

Company Info

Shelly manufactures Wi-Fi-enabled smart switches and IoT devices for remote control of home appliances and office equipment. Their product line includes compact smart switches that retrofit into standard electrical installations, enabling users to remotely control lights, heating systems, and security equipment via mobile apps. Shelly products integrate with major smart home platforms including Google Home, Amazon Alexa, and Samsung SmartThings.

Industry: Electronics & Smart Home Automation  
Headquarters: Worldwide  
Website: View website

Challenges

Shelly faced the classic smart home retail challenge: customers who wanted their products but couldn't figure out which solution matched their specific needs.

The core problem centered on decision paralysis. Customers browsing Shelly's smart switches and automation devices often got stuck at the "I don't know what to buy" stage. With multiple generations of products (Gen 3, Gen 4, Shelly 1-5 series) and various compatibility requirements across different smart home ecosystems, shoppers frequently bounced rather than risk choosing the wrong device.

Technical complexity compounded the issue. Home automation buyers need to understand compatibility with their existing setup, installation requirements, and which protocols work with their smart home platform. These aren't simple product questions. A customer might need to know whether a specific Shelly switch works with their Samsung SmartThings hub, fits their electrical box size, or supports their home's wiring configuration.

Without immediate answers, potential customers either abandoned their purchase or submitted lengthy support requests that created bottlenecks for Shelly's team. The company needed a way to provide instant, contextual guidance that matched customers with the right product based on their specific home automation needs.

"Customers often need help understanding compatibility, setup requirements, or which device fits their specific use case," explains a Shelly representative involved in the implementation.

Solutions

Shelly implemented Zipchat to provide proactive, AI-powered product guidance and technical support directly within the shopping experience.

Rather than waiting for customers to get confused and reach out, Zipchat proactively suggests relevant products based on what shoppers are browsing. When someone views a smart switch product page, the system can recommend compatible devices or suggest alternatives that better match their setup requirements. This eliminates the guesswork that leads to cart abandonment.

The platform handles technical Q&A in real time. When customers ask about compatibility, installation requirements, or setup processes, Zipchat provides immediate answers in plain language. For a company selling technical products to consumers with varying levels of home automation experience, this instant technical support removes a major purchase barrier.

Zipchat's product matching capabilities proved particularly valuable for Shelly's diverse product line. The system guides customers toward the right fit based on their home setup, use case, and platform preferences. Instead of hoping customers correctly self-select from multiple switch models and generations, Zipchat walks them through the decision process.

"It acts as a first-line technical assistant for home automation questions," the Shelly team notes. "Zipchat handles a lot of those questions in-chat and guides customers to the right product for their home setup, without waiting on our team."

Results

Shelly achieved consistent 8-12x monthly ROI through improved conversions and reduced customer drop-offs.

The implementation successfully addressed both major pain points. Customers no longer get stuck in analysis paralysis when comparing smart switch options, and they receive instant answers to technical questions that previously required human support.

Operational improvements:
Decision speed: Customers find the right product faster, especially when uncertain about home automation compatibility
Support efficiency: Common pre-sales and technical questions get answered instantly, reducing team bottlenecks
Conversion rates: Proactive product suggestions reduce endless browsing and guide customers toward checkout
Customer experience: Technical explanations delivered in plain language help non-expert buyers understand product fit

The results show in Shelly's bottom line. By removing friction from the decision process and providing immediate technical guidance, Zipchat transformed how customers interact with Shelly's product catalog. Instead of bouncing when faced with technical questions or compatibility concerns, shoppers get the answers they need to move forward with confidence.

"It improves the shopping experience by making support instant, contextual, and product-specific, especially for customers who aren't sure what solution matches their needs."

Client statement

Zipchat autonomously handles thousands of support tickets every month.

Zipchat delivers a 10x return on investment (ROI).

Q&A

Which specific challenges or problems did Zipchat help you solve?

First, it reduces the “I don’t know what to buy” friction by proactively suggesting relevant products based on what the customer is browsing. That speeds up decision-making and keeps shoppers moving instead of bouncing.Second, it acts as a first-line technical assistant for home automation questions. Customers often need help understanding compatibility, setup requirements, or which device fits their specific use case. Zipchat handles a lot of those questions in-chat and guides customers to the right product for their home setup, without waiting on our team.Overall, it improves the shopping experience by making support instant, contextual, and product-specific, especially for customers who aren’t sure what solution matches their needs.

How did Zipchat help you solve this challenges?

Proactive product guidance: It suggests products while customers browse, so they don’t need to search endlessly or leave the page to compare options. This reduces confusion and shortens the path to checkout.Technical Q&A in real time: When customers ask setup or compatibility questions, Zipchat answers immediately and explains things in plain language, which is especially helpful for home automation buyers.Better product matching: It guides customers toward the right fit based on their needs (home setup, use case, preferences), so they’re less likely to choose the wrong item. Fewer support bottlenecks: Common pre-sales questions get answered instantly, which reduces back-and-forth with our team and helps customers move forward faster.

What kind of results did you achieve thanks to Zipchat (for example ROI, tickets managed per day, savings per month, etc)?

Strong ROI: On average, we see around 8–12x ROI per month, driven by improved conversion and fewer drop-offs during the decision process. Time savings: Because Zipchat handles a lot of pre-sales product and technical questions, it reduces the time customers (and our team) spend searching for or explaining basic product information. Faster product discovery: Zipchat helps customers find the right product quicker, especially when they’re unsure about what fits their home automation setup.

Were you using another chat solution before Zipchat? If so, which one—and what motivated you to make the switch?

No, we weren’t using another chat solution before Zipchat. We decided to add live chat because customers often have product and compatibility questions, especially for home automation. Zipchat stood out because it can proactively recommend products and answer technical questions in real time, which helps shoppers choose the right item faster.

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