Chatbot marketing is gaining traction in digital advertising, which is not surprising because of its myriad benefits. Businesses that use chatbots have three times better conversion than those who use forms. Garner also projects that chatbots will become the primary customer service channel for a quarter of all businesses by 2027. Despite these, 60% of consumers prefer to wait in line to speak to a human agent than AI. In this article, we will weigh the benefits and drawbacks of chatbots in marketing.
The Benefits of Chatbots
Below are some of the pros of chatbots in marketing:
1. 24/7 customer service
The unique selling point of chatbots is that they provide instant customer support. Customers can make inquiries and troubleshoot issues with the business at any hour of the day. About 90% of queries from customers are resolved in 10 messages or less. This ensures that businesses provide round-the-clock support to customers irrespective of time zones or opening hours.
2. Personalised recommendation
Another benefit of chatbots is that they can provide personalised recommendations for customers. They gather information from their preferences and tailor messages suitable for each user. This way, you can advertise to each user only what is relevant to them and increase the possibility of conversion. 64% of customers prefer chatbots over regular customer service to provide personalised customer experience.
3. Ensure accuracy
Chatbots are smart bots so they provide accurate information and solutions to problems or inquiries. They incorporate algorithms and pre-learned content to replicate an agent of your business and give answers like you would. They can also help to sort orders, order and delivery details and customer information. Chatbots can handle multiple conversations simultaneously and accurately.
4. Reduce cost
Although Chatbots can be pricey to install, on the long run, it helps reduce cost on multiple staff. It is a great opportunity to have a marketing, sales and even customer service team all in one. You can invest these resources into production or improving the quality of your services.
5. Improve lead generation
Chatbots are very important for improving lead generation. They can help to analyse responses and customers going through your sales funnel. Chatbots can also help you follow up with customers if necessary. On another hand, as a smart technology, they help guide the audience through the sales funnel and help them make a purchase. For example, they can link customers to sales personnel or a form to book appointments.
6. Collecting valuable insights
Aside from engaging your customers, chatbots are very helpful in gathering valuable insights for your business. They track user behaviours based on interactions and you can use these customer data to make informed decisions. A good example is that you can discover defects in your products from the complaints that the chatbot receives.
The drawbacks of chatbots
Despite the benefits that chatbots afford businesses, there are still shortcomings with the technology. Some of them are:
1. It cannot solve complex problems
Chatbots are only able to solve straightforward queries based on information available to them. They may struggle with more complex problems and nuances that require human wit and flexibility to decipher. This can be frustrating for many users. Respondents to a survey on chatbots revealed they were unsatisfied with the AI because it could not understand them or solve their issues.
2. It takes time to implement
As with any technology, chatbots consume a lot of time, resources and expertise to implement. It takes more effort to set up so that it can solve specific queries. It also requires constant maintenance and upgrading for optimal performance. Thus, there may be better options for startups or small businesses.
3. It may miscommunicate
Another failure of chatbots is their limited understanding of natural language. While they simulate human language, they cannot communicate exactly like humans. Hence, they may misinterpret slang, lingos, sarcasm or colloquial language. This can result in miscommunication or providing wrong answers to queries.
4. Data privacy concerns
Chatbots, as with any AI, gather user data for a better personalised experience. First, they store this data which causes the risk of being leaked or hacked by a third party. Data privacy concerns have resulted in a huge trust gap between consumers and the technology. It is important to follow certain ethical guidelines such as encrypting stored data to ensure maximum data protection.
Latest advancements in chatbots for marketing
Chatbots have drastically improved over the years and technology continues to improve the capabilities of AI in marketing. AI platforms are leveraging machine learning to develop more intelligent and human-like chatbots. Some chatbots operate with voice search technology and integrate with smart home devices like Alexa. They are also evolving to create emotionally intelligent chatbots that can understand customers’ frustrations and empathise with them. However, a lot of these trends are still a work in progress. Start consulting with Primeclick Media today to learn the best strategies to incorporate chatbots into your marketing.
