Acquire

10 Chatbot Benefits: A Business Can’t Afford to Miss

author
Laduram Vishnoi
CEO, Acquire.io
7 min read
10 Chatbot Benefits: A Business Can’t Afford to Miss

Chatbots have recently become quite popular. They are being used by businesses to provide proactive assistance to their customers. Brands like American Express and H&M implemented chatbots, to supercharge their customer service experience.

Whitepaper- The Rise of Chatbot in Customer Service

Chatbots have grown and improved to capitalize on social media and messenger platforms. Most people haven’t openly identified the true potential of chatbots, so this article is designed to provide helpful Chatbot benefits for businesses.

No more hearing that Chatbots will be the next big thing because they already are. In fact, the year 2017 has become the “year of Chatbot”.

The number of businesses using Chatbots has grown exponentially. Chatbots docked to Facebook’s Messenger have increased from 30,000 in 2016 to over 100,000 today. Every major company has announced their own Chatbot and 60% of the youth population uses them daily.

These statistics prove that Chatbots are the new-gen tech.  No more waiting for the right time to incorporate them into your business. By the year 2020, nearly 80% of businesses will have their own Chatbot. Below are some of the benefits of Chatbots. Let’s have a look.

Whitepaper- The Rise of Chatbot in Customer Service

1.  Chatbots will excite your customers, so don’t disappoint them!

“When the customer comes first, the customer will last.” – Robert Half

People are very excited about the technology and love exploring it. According to an online survey, about 44% of U.S. consumers prefer Chatbots over humans for customer communication. Therefore, businesses excite their customers when adopting a new Chatbot.

Still, it’s the businesses’ responsibility to ensure a smooth experience. To be successful, they must ensure their Chatbots are:

  • Professional and bug-free.
  • Aligned to the brand rather than just random affairs.
  • Providing good linguistics.
  • Providing well-defined tasks.
  • Providing proper answers/ solutions for queries
  • Working seamlessly on a variety of devices.

2.  Chatbots won’t replace services or people

The biggest Chatbot misconception is that they’ll take over services and automate everything so businesses wouldn’t need humans to function.

This won’t happen; at least not completely. While Chatbots may appear to replace apps and will minimize human efforts for more productive outcomes, they cannot completely replace people and services.

Chatbots merely interact with people to clarify their queries within the preset scope as much as possible. For issues outside the scope, Chatbots are still able to determine a customer’s initial query. A chatbot is more helpful when customer ask repetitive questions because all information required for further resolution has already been gathered, saving time and energy, resulting in more expediency and accuracy.

3. Chatbots help cut down on operational costs

Every year, around 265 billion customer support requests are made and it costs businesses whopping $1.3 trillion to service them. These costs can significantly be reduced with the help of AI Chatbots. As per reports of Chatbots Magazine, implementing virtual agents or Chatbots can help businesses to save up to 30%.

Chatbots won’t completely replace human agent or employees. Chatbots give support and solve repetitive queries of the customers and as a result, customer service agents will be able to handle more complex queries and provide better service to the customers. Therefore, Chatbots ensure lucrative productivity from the investment in agent or employees. Hiring agents for 24*7*365 and adding resources to give support to the customers round the clock can be too costly for the company.

Companies like Auto desk, receive calls for general inquiries that can be handled quickly by Chatbots. Virtual agents or Chatbots will be the first point of contact and for more complex queries it can be escalated to human agents, hence Chatbot helps in improving customer service and reduces cost.

According to industry research, Chatbots are predicted to deal with 90% of all customer inquiries within 5 years. This means that by 2022, it’s expected that they will cut business costs by $8 billion.

4. Chatbots offer progressive avenues for marketing and sales

“A sale is not something you pursue; it’s what happens to you while you are immersed in serving your customers.”

Competent Chatbots developed by effective sources, like acquire, can close more sales through robust marketing attempts. For example:

Whitepaper- The Rise of Chatbot in Customer Service

  1. Improved customer engagement - Chatbots can establish personalized customer interactions to provide them with credible shopping advice based on their purchase history and preferences.
  2. Marketing funnel guidance - Chatbots won’t keep customers waiting. They seamlessly guide them through every aspect of the sale, addressing each query as it arises.
  3. Relevant notifications - Chatbots are knowledgeable about predicting customer behavior. Because of this, they can push the appropriate notifications to the right people, every time.
  4. Broadened reach - Chatbots can reach out to innumerable prospects through social media like no human could ever achieve.
  5. Heighten brand value - Chatbots can catch customer attention through historical interactions and gather and analyze customer feedback and data. This is then used to effectively communicate your brand to the right people in the best way.

5.  Chatbots impact the business by improving sales and customer services

Chatbots collect customer information like names, professions, and website or social network contact details to create customer profiles. In this way, the chatbot is used for both sales and marketing purposes. They keep existing customers engaged with interested brands and products with push notifications.

Chatbots act like a bridge between brands and customers by providing 24/7 interaction. They communicate like a human being, but reduce human error and don’t get frustrated, like humans often do. Chatbots can perform routine tasks simply to enhance customer service. They also provide customers with complete product details..

6. Chatbots need consistent evaluation and optimization

As with anything else, Chatbots require continuous evaluation and optimization for success. According to a recent estimation, 1.2 billion people use Facebook’s Messenger. This estimation represents 11% of the world’s population. This means millions of messages are being sent through the platform and predictably, most are being ignored.

Chatbot performance must be regularly tracked and evaluated based on the capability of retrieving relevant information like user experiences, linguistic capabilities, and usability. Businesses can devise changes necessary to achieve definitive goals.

Chatbot optimization includes:

  • Setting appropriate goals.
  • Varying inviting welcome messages.
  • Incorporating additional information about the brand.
  • Adding new products.
  • Pricing changes.
  • Broadcasting new and more attractive offers.

7. Chatbots meet customer expectations and boost brands

“Products are made in the factory, but brands are created in the mind.” – Walter Landor

Chatbots are well-designed to propel brand values to a wide range of prospects. They provide friendly interaction and a good rapport with customers.

Customers expect simple business interactions. This requires expedient responses to customer complaints or queries. Chatbots can clearly understand issues and instantly deliver possible resolutions.

Below are some points which help to meet customer needs and boost brands:

  1. Better open rate Chatbots proactively interact with the customers and give quick responses to them. Because of this Chatbots has higher rates compared to email.
  2. Better engagement Bots sends visual content and gives information regarding discount offers, or product information to keep the customer interested. This boosts customer engagement.
  3. Personalized Experience It’s important for any business to deliver a personal experience to the customers across many touch points. Creating a pleasant Chatbot interface will increase the efficiency of Chatbots. As a result, it will be able to increase sales and give more satisfaction to customers.

And since customers can avail themselves of any necessary information at any time, they aren’t annoyed by having to wait for a CRM to arrive at work or for support hours to open. These factors ensure customer retention like no employee could. Therefore, they earn positive reviews and boost the brand.

8. Chatbots showcase new products and services

Chatbots form a conducive platform for broadcasting a business. They reach massive audiences. They maintain constant and friendly customer contact, eliminating customer annoyance from cold calls.

This forms a favorable basis for pushing notifications and showcasing new products and services. As these notifications are only sent to the appropriate people, based on their interests, customers feel appreciated rather than irritated. These factors combine to make Chatbots the best platform for explaining a business’s new products and services to consumers.

9. Chatbots could change the nature of marketing

Business is all about reaching relevant audiences. But conventional means make it difficult to analyze and predict customer interests and preferences. In this way, Chatbots change the nature of marketing endeavors and form the customer service strategy.

Whitepaper- The Rise of Chatbot in Customer Service

They build good customer relationships and possess the ability to delicately persuade consumers to purchase by suggesting preferred items. Chatbots monitor consumer behavior and can track customer interest, which helps to propel appropriate notifications based on individual interests.

10. Consumers can purchase and receive recommendations from chatbots

It can be tedious for a customer to try to choose what to buy. This is why they seek advice. Chatbots are good at providing this. They don’t offer voluminous irrelevant product recommendations. They analyze various facts associated with each specific customer and render relevant choices.

Customers are always in search of better options, so Chatbots also recommend similar products to assist them. So, it’s no surprise that more than 22% of consumers are interested in receiving Chatbot recommendations.

Chatbots don’t just provide support assistance and product recommendations, they also sell. They have improved so much that they can now hold payment options. About 37% of consumers and 48% of millennials are eager to buy through Chatbots, making them an influential buying channel.

The cosmetic brand Sephora has implemented a Chatbot in partnership with Kik messaging application. Customers get in touch with Sephora through Chatbot and ask recommendations for makeup or requests product reviews based on their needs. Chatbot recommends selected products to the customers as per their needs and also sends videos of various types of makeup. Thus Chatbots increases customer engagement and improves sales and conversion rate.

Conclusion

There are many benefits of Chatbots, some of which have been described in this post. Businesses have saved a lot of money while increasing more sales and conversion rate with the help of Chatbot.  With the advancements of AI, NLP and machine learning, Chatbots are becoming more and more intelligent, and the future of Chatbots seems bright.

You may also like

Why Great Customer Service Is Critical To Business Success

“Customer service is an opportunity to exceed your customer’s expectations”: John Jantsch, Duct Tape Marketing If there is one...

How Technology Can Bring You That Lucrative Extra Sales Growth

“What new technology does is create new opportunities to do a job that customers want done”: Tim O’Reilly Nearly...

How to Build Customer Relationship through Visual Engagement

Every single day, companies are looking to develop more interactive and exciting ways to connect with their shoppers. As...