Mobile technology has advanced by leaps and bounds over the past decade, by helping us exchange information, authenticate and carry out transactions seamlessly. A plethora of information is available at our fingertips, without the need for human intervention. The only area where human interaction had maintained an edge over technology was during a conversation, although even that is now being taken over by digital technology via chatbots.
Before we explore the world of chatbots, let us first understand the importance of having a digital marketing strategy for businesses. The millennial lives on their mobile: from financial transactions to grocery purchases, and from booking movie tickets to booking a doctor’s appointment — everything is done through the mobile phone. Adding to the convenience of digital transactions, today’s customer makes purchasing decisions based on the range of products and service information available online. Therefore, the best and the fastest way to engage potential customers is digital! Businesses looking for progressive and sustainable growth need to have a clear cut digital marketing strategy.
Conversational Marketing and the Evolution of Chatbots
In this era of millennials, marketing takes a great deal of organization and technical nerves. It does not come as a surprise that CMOs are rushing to build their tech stacks and buy software that enables them to stay ahead — if not keep up with the digital-savvy consumers. A few years ago, personalized conversations were reserved for human interactions. However, with the introduction of chatbots, this area of marketing is dominated by artificial intelligence (AI) technology.
Consumers expect highly personalized shopping experiences from retailers. A personalized experience leads to happy, loyal customers, while an impersonal experience loses customers. The 2017 State Personalization Report showed that an average of 71% of customers expressed some level of dissatisfaction with impersonal customer engagements. Conversational marketing is a great way to engage prospective buyers in personalized conversations.
What are chatbots? A chatbot is an intuitive AI-based customer interface that establishes text-based, voice-based, or human expression-based conversations. Personalized chatbots conversations are based on technologies like artificial intelligence and natural language processing. Chatbots can support several businesses across industries like banks, insurance, education, hospitality, healthcare, and more. From a simple digital tool a decade ago, chatbots have evolved into a complete digital assistant. Here is a look at the evolution of chatbots.
Artificial Intelligence in Conversational Marketing
As per the digital marketing and advertising Hype Cycle published by Gartner, conversational marketing is shown as a promising trend in the hype cycle. The report also highlights the role of AI in conversational marketing as one that enables marketers to deliver relevant experiences to prospective customers with increased effectiveness and efficiency.
Another Gartner research (in support of AI Chatbots) points out that messaging platforms and virtual personal assistants are increasingly becoming a way for retailers to reach out to customers for marketing and sales purposes.
AI chatbots enable real-time customer service and cost-effective AI-based customer support for businesses looking to optimize their sales funnels and buyer personas. Critical business functions like customer service, sales and marketing, order processing, HR functions, payments and billing, and technical support are being managed by AI-chatbots almost independently (90%) without human intervention.
Businesses can set up an intuitive AI-based customer interface through chatbots. Personalized Chatbot conversations enable businesses to turn prospects into deals by impressing consumers with exactly what they are looking for. Apart from providing responsive customer service, chatbots also gather visitor’s data which can be utilized for personalized product offerings.
Improve Conversion Rates with AI Chatbots
Automating customer service through AI chatbots increases the effectiveness and efficiency of customer engagement. By using AI technology for conversational marketing, businesses can automate, engage, and manage customers more efficiently. AI chatbots or virtual assistants when used for customer support reduce the manpower, cost, and time significantly. AI Chatbots are powered with natural language processing, which makes them capable of initiating conversations with customers and providing answers to similar queries.
AI chatbots are capable of gathering huge volumes of customer data from multiple channels and translating them into useful data analytics. The data captured by chatbots provide valuable business insights that enable businesses to further personalize their customer experience. A high degree of personalization translates to better conversion rates.
Managing customer data and creating buyer personas is another advantage of using AI chatbots. Huge volume of customer data collected across various touchpoints is broken down into silos and buyer personas can then be created easily by chatbots. Businesses looking to continuously engage their customers through meaningful conversations can safely rely on AI chatbots. Simple, straight forward customer queries are handled by chatbots efficiently.
AI technology in conversational marketing utilizes sentimental analysis to foresee customer’s emotions and providing relevant responses. AI chatbots can route complex queries to humans in a very efficient and timely manner. Based on customer data, chatbots provide personalized product offerings to customers. Such interactive customer engagement creates loyal customers and ultimately improves ROI of businesses.
Future of AI-Chatbots
Progressive businesses looking to establish an intuitive AI-based customer interface that establishes a personalized connection with the customers are adopting AI chatbots. As per data collected by Grand View Research, the US Chatbot market was valued at 190.8 million USD in 2016. The market is expected to grow steadily with various innovations in artificial intelligence and machine learning technologies enhancing the capabilities of chatbots. The graph below illustrates the projected growth of the US Chatbot market across various industries from 2014–2025.
It is evident from the above graph that the e-commerce (as well as other) sector is all set to embrace AI chatbots for better conversion rates in marketing and sales. As newer artificial intelligence and machine learning techniques are incorporated into chatbots, newer and more advanced capabilities will be added to their features.
AI-chatbots technology is slowly moving towards the mainstream with big names like Spotify, Starbucks, and Mastercard adopting chatbots as their frontline interface. Individual brands are also going big by creating chatbots on social networks platforms. AI chatbots can be beneficial for businesses looking to provide better customer experiences.
If you are looking to build great customer experience around your brand, Winimy is here to help. We are pioneers in AI-powered solutions that provide engaging and interactive customer engagement for highly efficient conversion in marketing and sales. Talk to us to discover the best AI-Chatbots solution for your business. We are contactable at firstname.lastname@example.org.