Conversational AI technologies have been the marketing hot topic of the year so far, and the past week has seen the introduction of Snapchat AI to the photo sharing app. Powered by OpenAI’s ChatGPT technology, it has divided many opinions.
However, chatbots can offer incredible value to companies. Let’s take a look at some of the many benefits that incorporating chatbots into your social strategy can provide.
Research from Hootsuite suggests the size of the chatbot market is expected to reach $1.25 billion by 2025 and shortly after this time, 25% of organisations are predicted to incorporate some form of chatbot into their main customer service strategy.
An automated alternative to a human on the other side of the screen, chatbots can appear in website chat windows, SMS text and social media messaging services such as Facebook, Twitter and Whatsapp (or all of the above!) Thanks to advances in conversational AI, are becoming plausibly alternatives, or at least supplements to human customer service.
According to Ccom Digital, chatbots can assist in enhancing data capture and analysis, allowing businesses to make better informed strategic decisions based on this collected data. Similarly, Sprout Social suggests that chatbots can help with social listening to capture data from their conversations. This relatively simple form of data capture can make it easy to determine common themes and trends in the form of FAQs, or basic sentiment analysis.
This data provides businesses with invaluable insights to inform new product development and personalisation, improving the overall customer experience. Businesses can examine chatbot conversations through “machine-learning text driven analysis and sentiment analysis” to extract insights into customer demographic data and purchase history to help personalise future offerings. This gives businesses using the tech significant competitive advantage over other firms. With big data and especially social listening becoming ever more useful, expect this segment to grow over the next decade, as more and more first-party data is collected on customers.
According to Sprout Social, chatbots are very effective at helping customers over the line of making a purchase. They can help customers find exactly what they are looking for and provide them with relevant offers and discounts, increasing conversions and revenue as a result.
For customers at the point of consideration but unsure about specifics, chatbots and conversational AI can ask customers a series of questions to point them in the right direction to receive efficient support to help them checkout more quickly. Once their questions have been answered, whether it’s query on delivery times, costs, or feature sets, chatbots can incorporate CTA buttons to entice customers into making a purchase by leading them to the product page or to checkout, resulting in a sale.
According to Hootsuite, Chatbots can effectively eliminate pain points in the customer journey to reduce bounce rate and shopping cart abandonment. Instead of customers receiving information at the end of their purchase journey and not proceeding with the sale, chatbots can provide support at each stage of the customer journey to reduce the chances of shopping cart abandonment. Therefore they can communicate essential information to the buyer before they reach checkout, increasing lead generation as a result.
According to Ccom Digital, chatbots are great for providing quick and efficient customer service which is now expected by customers and can improve their user experience.
Global adoption of chatbots in customer service is rapidly increasing day-by-day, to the extent that chatbots are estimated to now handle 80% of all customer queries. According to Tidio, a massive 88% of of customers had at least one experience with a chatbot in 2022. With advances in the tech, chatbots can now accurately understand audiences due to their unique ability to analyse user intent and provide appropriate responses. They can also tailor their response to suit the customer’s individual circumstances.
As opposed to humans, chatbots can provide customers with 24/7 out of hours support to solve any problems that they might have. Hootsuite suggests they can help with order tracking, provide customer recommendations and answer an increasing number of straightforward FAQs. According to Sprout Social, chatbots can save businesses a considerable amount of money due to their ability to automate customer service tasks by answering customer queries and obtaining feedback. Hootsuite suggests that chatbots can lower call and chat volumes which allows business support teams to focus on conversations which “drive the biggest impact”. By using a blend of humans and chatbots, businesses can rely on chatbots to automate high-volume routine queries which allows their support teams to spend their time on complex and high-priority tasks instead.
Effective customer service is very important as Hootsuite reports that 90% of customers explain that a quick resolution of their problem is their most important requirement when it comes to customer service. Ccom Digital suggests brand marketing today heavily relies on quick responsiveness and reliability with businesses able to increase their competitiveness by possessing a quick and efficient customer service provision. Hootsuite suggests that as a result, businesses can increase customer satisfaction, develop brand loyalty and increase their customer lifetime value through the use of chatbots in their marketing mix.
According to Hootsuite, it is predicted that social commerce will be responsible for $2.9 trillion dollars in sales by 2026. Facebook Messenger and Instagram incorporate chatbots allowing companies to provide an omnichannel customer experience, with others expected to follow suit.
Snapchat’s recent AI addition might seem like a harmless conversational bot to most users, but within days of its launch has already been adding sponsored links to its output, proving the commercial value of these tools is under significant testing, and unlikely to go away, claims The Verge.
If you’re unsure where to get started when it comes to using chatbots and how they can help profile your audience, or take some of the strain from a customer service team…