The 21st century consumer is one who is spoilt for choice! The expectation of superior customer service and the actual reality has led to easier shifts towards competing brands. So how does one resolve the ever-looming brand dilemma of providing prompt, accurate and individualized customer service? Well, the answer lies in automated touchpoints – “Chatbots”.
Chatbots have become more and more advanced in their very short existence. Fast-forward to today, chatbots—in all of its forms—are an essential tool for companies looking to expand their consumer base, improve service delivery to a larger audience, and save a substantial amount of money.
The introduction of chatbots has completely changed the way brands provide and operate. Chatbots use significant data insights to reduce costs, increase lead generation, streamline support, etc. They have become the “saving grace” for busy marketers. Anyone can now create and implement a chatbot without the need for a software developer thanks to the introduction of no-code chatbot tools.
Let’s explore how Chatbots have become a breakthrough strategy to creating meaningful marketing.
What are conversational Chatbots?
Whether you realize it or not, you have undoubtedly come face-to-face with a chatbot before. For instance, a window inquiring if you need assistance may appear on your screen when you’re using your computer to research a product or service. Or maybe you use your smartphone to send a chat request for a ride while enroute. Chatbots have become more and more prevalent.
In simple terms, a chatbot is a computer software that mimics and interprets spoken or written human communication, enabling people to engage with digital devices in the same way they would with a real person. Chatbots can be as basic as one-line programs that respond to a basic question, or they can be as complex as digital assistants that learn and develop over time to provide ever-more-personalized services as they collect and analyze data.
A few AI chatbots across industries:
Chatbots are not limited to industries. A crucial differentiator for businesses can be its Chatbots ability to adapt and personalize.
For instance, the versatility of chatbots is displayed from Bolt implementing the use of chatbots to walk drivers through the sign-up process, which included an automated ID check, the ride-hailing startup increased the conversion rate of new drivers by 40% in 2021. To the Bank of America claimed an improvement in their customer satisfaction with over 1.5 billion client interactions being fulfilled by their chatbot Erica in 2020. Or even users can get fashion guidance and recommendations from H&M’s Kik chatbot where a user is offered a tailored styling advice experience. With over 15 million monthly active users.
The Good, the Bad and the Ugly side of Chatbots
Benefits of Chatbots:
- Automation and Efficiency: Chatbots streamline and automate daily customer interactions, this enables organizations to respond to several consumer requests at once, leading to increased efficiency and quicker reaction times.
- All the time Availability: A chatbot offers 24/7service, guaranteeing that customers may receive help whenever they need it this will increase customer loyalty and satisfaction.
- Cost Savings: Chatbots reduce customer support expenses by managing several interactions at once. By taking care of basic problems and lowering the need for extra human resources, they can help brands save time and money.
- Enhanced Customer Experience: Chatbots are able to offer customized content and individualized interactions according to the choices of the user. Additionally, this captures and offers in-depth analysis that enhances the long-term general client experience.
Detriments of Chatbots
- Updating and Maintaining: Chatbots need to be updated on a regular basis to reflect modifications to policies, services, or goods. Maintaining your chatbots relevance is crucial in order to give customers accurate and up to date information.
- Lack of Emotional Intelligence: It’s possible that chatbots aren’t as sensitive or empathic as real customer support agents. When clients need complicated emotional support or are in such a scenario, this could be a disadvantage.
- First Setup and Integration: Setting up a chatbot could be time-consuming and resource-intensive for initial setup and integration into a website.
The future of Chatbots…
So the question now is “in what direction will chatbot evolution go?”. Like other AI tools, chatbots will be used to augment human capabilities and free up human time to focus on strategic rather than tactical tasks allowing more creativity and imagination in consumer centric activities.
Marketers simply cannot afford to get left behind in the “golden age” of interrupt, tell, and sell marketing. Marketing with meaning is how customers will demand business be done today for tomorrow. The Chatbots addition to the Martech evolution is a marketer’s guide to surviving and thriving in this fourth industrial revolution.