a chatbot is an artificial intelligence (AI) program that simulates interactive human conversation by using key pre-calculated user phrases and auditory or text-based signals.
A chatbot is also known as an artificial conversational entity (ACE), chat robot, talk bot, chatterbot or chatterbox.
Where can we use Chatbots?
Chatbots are frequently used for basic customer service and marketing systems that frequent social networking hubs and instant messaging (IM) clients. They are also often included in operating systems as intelligent virtual assistants.
Why Businesses Should Consider Chatbots?
- The global Chatbot market is expected to grow exponentially between 2016–2023. — Credence Research
- 85% of customer interactions will be managed without a human by 2020. — Gartner
- 32% of executives say voice recognition is the most widely used AI technology in their business. — Narrative Science
- 6 billion connected devices will proactively ask for support by 2018 — Gartner
- 44% of executives believe artificial intelligence’s most important benefit is “automated communications that provide data that can be used to make decisions.” — Narrative Science
- By the end of 2018, “customer digital assistants” will recognize customers by face and voice across channels and partners. — Gartner
- 40% of mobile interactions will be managed by smart agents by 2020. — Gartner
- 10k+ developers are building chatbots on Facebook Messenger. — Facebook
4 ways chatbot marketing may change the industry
Chatbots could help businesses with creating quality leads and nurturing them. You can use them to fully automate this process, and they could engage your prospects without you having to send annoying emails and bother people on social media. They can also be helpful with selecting the right leads, as they can quickly obtain and process important customer and prospect information.
This is especially useful in the post-sale process, as chatbots can immediately recommend new offers and products based on the customer’s purchase history. And with an algorithm advanced enough, these won’t be just wild guesses but recommendations that would actually feel as if they’re designed exactly for the particular user in question.
The amount of data chatbots acquire is vast, and will only continue to widen. You could use this information to improve your marketing efforts across multiple channels. Apart from personalizing ads and suggestions on your website for every particular visitor, you’ll be able to employ this intelligence for advertising on other channels and to improve your overall marketing strategy, as well.
There are at least two ways chatbots can help you with your branding efforts.
Firstly, this is still a rather exclusive technology companies are still discovering. By making use of chatbots, you can present yourself as a business that cares about being innovative and original.
Secondly, you can literally make your chatbot the voice of your company. This will take a lot of work, but if you make your bot more than just a generic customer service representative and instead try to put a little heart and soul in it, you can adjust its tone and language to represent your brand in the best possible way.
Using Chatbots at Each Stage of the Customer Journey
Bot helps define the problem and begins sending relevant content:
- Bot Helps Diagnose the Problem: Use Quizzes, Calculators, Questionnaire to help the customer diagnose their problem.
- Bot Sends Content of Value: Send guides, tutorials, videos to confirm that this is the problem.
Bot helps compare solutions and guides the customer towards purchase:
- Bot Helps Compare Options: Shows user how they can solve the problem and the benefits of each solution. Drills down on what is important to the customer and helps guide them to that solution.
- Best Practice: Connect you’re the Chatbot to every piece of decision content on your site.
The buyer chooses a solution:
- Purchasing via Bot: Use webviews for your purchase page. They convert better and have some much need information such as reviews, product description, pictures, etc
- Abandoned Carts: If/when a customer abandon their cart, the bot will remind them. This feature is so powerful that as many as 50% of abandoned carts are recovered.
- Receipts & Shipping: After purchase, the bot gives the customer a receipt and updates them on shipping status. This substantially decreases the number of customer service requests and costs.
- Upselling: After the purchase, the bot can recommend other similar items. About 1/3rd of customers will buy a second item.
- Reviews: After the customer has received the product, the Bot can ask them how they like it and gather a customer review.
- Customer Service Chatbot: After the purchase, you can provide follow up support via your bot.