10 Benefits of Chatbot Marketing

August 12, 2020

From lead generation to guided shopping, chatbot marketing is revolutionizing the way business is done.

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Chatbots have made the headlines both in and outside of the business world. Almost all industries, including e-commerce, travel, real estate, education, and healthcare, use chatbots. Research reveals that $4.5 billion will be invested in chatbots by 2021.

The last few years have witnessed the considerable adoption of chatbots for business. From lead generation to guided shopping, chatbot marketing is revolutionizing the way business is done.

Chatbots streamline consumer communication, making it easy for brands to connect with customers and prospects at scale.

Chatbots are the present and future of marketing. They offer endless benefits and massive potential for growth for brands.

Here are ten of the top benefits of chatbot marketing.

What is a Marketing Chatbot?

First off, it is important to understand what exactly a marketing chatbot is.

A marketing chatbot is a bot that streamlines your marketing funnel into an automated conversation that drives an action valuable to your enterprise.

It increases a customer’s purchase intent by learning about his preferences and personalizing the customer journey in real-time.

A marketing chatbot engages and converts customers at scale on their channel of choice and at their preferred time. In a nutshell, a marketing chatbot guides customers, personalizes experiences, offers recommendations, and drives business outcomes.

Benefits of Chatbot Marketing

Chatbot marketing has a number of benefits for businesses. These include:

1. Drive Engagement at Scale

Research shows that engaged customers account for 23% of your company’s profitability, revenue, and relationship growth. Also, organizations that engage customers on social media report a 20-40% increase in customer spend.

Chatbots offer a valuable way for businesses to engage customers at scale. While customer service chatbots that pop out on the right side of a website have a reactive mode of handling customer issues, marketing chatbots proactively engage customers to drive conversions valuable to your business.

Marketing bots connect with customers online on websites, mobile apps, and social media platforms. They engage customers by giving them immediate attention, guiding shopping experiences, answering questions, and recommending products that convert.

2. Collect Declared Data on your Audience

Marketing chatbots powered by Spectrm allow you to gather declared data on your audience. Declared data is the information consumers provide when interacting with your business in one to one conversation. It helps you to validate demographic data as well as identify the needs and wants of customers.

What is declared data?

Declared data is information that is explicitly volunteered by consumers in a direct interaction with your business. It can be used to validate demographic data. But it also enables marketers to identify the needs, wants and desires of a customer. It is data most marketers can only assume about their audience unless they explicitly collect it.

Chatbot marketing enables you to collect declared data so that you can personalize the customer journey, automate personalized retargeting, conduct marketing research for new offerings, and extract customer insights from social media.

3. Personalize the Customer Experience

Chatbot marketing personalizes the customer experience using a feedback-driven process. Chatbots guide customers to discover your brand and its offerings. Then, they ask customers what they are interested in and recommend products, content or even additional information to increase the desirability of your brand.

Declared data plays a significant role in the personalization of the customer experience. Chatbot marketing personalizes every step of the customer journey from ad click to purchase at scale.

4. Drive Leads on New Channels

Chatbot marketing drives leads on new channels such as Facebook Messenger and Google Display. Lead generation bots are helpful in prospecting, qualifying, and acquiring customers. They personalize the customer journey to create value, simplify product discovery, and generate more qualified leads.

5. Optimize Your E-commerce Funnel

Chatbots powered by Spectrm automate your social inbox with chat funnels that convert customers and respond to their queries anytime. They also streamline the different stages of your marketing funnel into a single conversation. This way, prospects move from discovery to consideration and action in one conversation.

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Click play to watch the chatbot in action.

Daniel Wellington Guided Selling Bot Drives Conversions on Facebook Messenger

Daniel Wellington helps customers by recommending relevant products from their extensive catalogue using Spectrm.

6. Improve Shopping Experience

One survey reveals that 83% of online shoppers require support when shopping. These shoppers may need help navigating through your site and understanding products. They may also have queries regarding registration, payment, checkout, and delivery.

Chatbots built by Spectrm act as personal shoppers and guide customers in their shopping journey. They notify customers about relevant offers and customize the purchase process to meet the needs of distinct consumers.

This all happens before the customer even visits your site, enabling brands to instantly add value and generate demand.

For customers, this offers a truly seamless shopping experience.

7. Increase Conversion Rates

Chatbot marketing increases conversion rates in various ways.

First, guided shopping chatbots ensure customers have a seamless shopping experience to increase the likelihood of converting.

Second, by offering personalized experiences, chatbots increase conversions. In fact, brands that personalize web experiences report a 19% increase in sales.

Third, chatbots have lead generation tools to qualify and nurture leads. This way, you concentrate on the qualified, not unqualified, leads to increase conversions.

Finally, due to their 24/7 availability and fast responses, chatbots engage with customers when their purchase intent is high, which increases the conversion rate.

8. Improve ROI

It is indisputable that chatbot marketing improves ROI.

57% of enterprises agree that chatbots deliver high ROI. E-commerce chatbots improve ROI by increasing customer engagement, optimizing e-commerce marketing funnel, enhancing the customer experience, and providing a competitive edge.

By offering personalized, instant, and effortless buying experiences, chatbots powered by Spectrm yield high ROI.

Chatbots also cut costs for businesses, which improves ROI. According to Juniper Research, by 2022, chatbots will save enterprises an estimate of $8 billion annually. Lastly, chatbots engage and acquire customers more effectively than humans, and at a lower cost.

9. Generate Customer Insights

Over time, chatbots powered by Spectrm gather vast amounts of customer data. You can derive insights from this data to optimize marketing, improve personalization, and enhance remarketing at scale.

Spectrm’s exclusive bot analytics technology equips marketing teams with easily actionable declared data on your customers. This data can be used to segment, retarget and convert customers in real-time. All from a single platform.

10. Build Brand Loyalty

Chatbot marketing cultivates customer relationships and enhances the customer experience to increase brand loyalty. By offering personalized experiences, chatbots improve brand loyalty.

After a personalized shopping experience, 44% of consumers say they will purchase from the business again.

The Takeaway

Marketing chatbots offer endless benefits for brands, regardless of size and industry. They drive engagement at scale, optimize your e-commerce funnel, increase conversion rates, improve shopping experience, and enhance your bottom line.

Marketing bots also provide loads of declared data about customers and an easy way to personalize every experience from ad click to purchase.

If you are not leveraging marketing chatbots for your business, you are missing out.

Take your bot marketing to the next level with Spectrm’s advanced conversational marketing platform.

BOOK A DEMO TODAY.