Updated: May 31
A chatbot is a service powered by rules or artificial intelligence that you interact with via a chat interface. It works as a virtual assistant and saves businesses time and effort by automating customer support. Almost 60% of U.S. adults use online messaging, voice, or video chat services.
A well-built chatbot uses existing conversation data to understand the type of questions people ask. It uses machine learning to learn the context of a query and continually get better at answering similar questions in the future.
Facebook was the first to use chatbots as part of their Messenger app after which Google used it as Google Assistant. Since then there are hundreds and thousands of chatbot apps built on websites and social media platforms for customer support and services.
Benefits of Chatbots
These days there is a lot of pressure on marketing and sales teams to not only show conversions, but to also constantly improve the customer experience which is not an easy task. Chatbots can play an active role in this in the following ways:
Improve Customer Service
According to a survey, 83% of online shoppers need support during shopping. Chatbots help customers understand which product fits their needs and budgets any time of the day. They can also help shoppers find what they are looking for when they are on your company website and answer questions related to registration, payment, checkout and delivery.
Increase Customer Engagement
It’s really important to keep your customers engaged with your brand because companies that engage with their customers on social media are able to increase the customer spend by 20% to 40%. Chatbots can contribute by making the engagement more interactive, usually with the help of a great sense of humor. Chatbots can also offer interactive communication where they ask questions to understand the real problem, using either text or voice.
Increase Website Conversion Rate
Marketers put a lot of work in to drive traffic to their website, only to have that traffic convert anywhere between 0.25% – 1.0%. With a chatbot, even a poorly optimized website can have a conversion rate of 2%.
Monitor Consumer Data
Chatbot is a great tool to communicate with customers. You can easily improve your product or service with the help of feedback collected through simple questions and even optimize your website by adjusting low converting pages. Chatbots help you track purchasing patterns and consumer behaviours by generating user data.
Chatbots can improve sales acceleration. Facebook launched lead generation in August last year allowing businesses to engage with potential leads. Almost 11% of the global population relies on the Facebook messenger app on a monthly basis. If you offer products or services that require a high level of purchase then chatbots can be a valuable solution.
Easy Approach to Global Markets
Chatbots can solve all your customer care problems in multiple languages whether you are a local brand who is ready for global business or a global brand with customers all over the world.
Implementing a fully functioning chatbot is cheaper and faster than hiring employees for each task. Since chatbots are automated solutions, they allow organizations to handle many customers at once. According to BI Intelligence, chatbots can easily save up to $39 billion a year in salaries across sales and customer support and services. By using chatbots you will not only save on employee costs, but you will also avoid problems caused by human errors.
Like it or not, chatbots are here to stay. They are getting cheaper and smarter day by day. Now it depends on you how you utilize it for your business or brand to increase conversion rates.