Keair Bailey, Msc Digital MArketing Management
Chatbots are the cost-effective way for a business to stay engaged with their customer 24/7, this blog will discuss why businesses should be including them in their next marketing implementation.
On a very simple level, a bot is just a bit of software that can carry out pre-determined actions on its own without being actively controlled. This is discussed in further detail by Neil Patel who describes it as a “wind up toy”, you build it to carry out what you want it to, you wind it up, and then you let it perform the action it was designed for.
The Customer comes first
The first advantage that a business will notice when introducing chatbots to their marketing is the speed in which the bots reply to customer support messages. This is extremely important as its very common for customers to get very frustrated when made to wait for a human over the phone on through a chat. There is no way to accommodate enough human customer support workers for every customer with a query which results in long wait times. TheModernFirm did a study on customers who have had to call in order to reach customer support, these numbers were found:
- “67% of customers hang up out of frustration when they can’t reach a real person.
- 75% of customers think that it takes too long to reach a human being.
- 72% of callers who reach an automated/recorded phone line will hang up.”
These problems will result in lower customer loyalty and eventually a loss of profits.
Implementation of a chatbot would eradicate these problems, A chatbots response is immediate and a customer can have their query solved in a matter of seconds. Customers are also more likely to reach out for support if they see a ‘Live Chat’ button.
More information
Businesses today put a lot of emphasis on knowing everything about their customer, this is normally done through primary research. Information such as what a customer is buying is available as a company can just look at sales statistics, however, products that a customer is choosing not to buy is harder to work out as there are far more variables involved. The best way to gain this information is straight from the customers their selves, this is made possible by the mighty chatbot. Email doesn’t result in as accurate information due to the back and forth nature, a live chat allows the customer to reply naturally which leads to more accurate information.
Modern Evolution
LearningHub stats show that Chatbots will power 85% of customer service by 2020 and by 2022, chatbots will help businesses save over $8 billion per annum. If these stats stay true, which information is leaning towards, companies who HAVEN’T introduced chatbots into their marketing strategy will be left behind. Customers will simply stop doing business with company’s that require extra steps to get what they want. Together with the cost efficiency of the chatbot, It makes less and less sense to continue to pay a human to do an AI’s job. Speaking of humans, its very common for somebody working customer support to make a ‘human’ error, this could be something as simple as interpreting the meaning of a question slightly wrong which can lead to frustration or a loss of sales from the customer.
They’re taking our jobs!
While the AI in a chatbot can usually accommodate for most requests from a customer, it’s very easy for a chatbot to get stuck if a customer’s query is slightly different to its base algorithms that its been taught. Also, as a chatbot learns from the responses it receives from a customer, it can sometimes make the wrong decision internally due not being able to actually choose which decision it wants to make, it is just following the code. An example of this is a Microsoft chatbot used on Twitter being taught racist and misogynistic responses by customers in less than 24 hours, to avoid this, the chatbot must be optimised properly.
Conclusion
There is an endless supply of advantages when it comes to assessing chatbots, they can save your company money and time, improve your customer relations and customer loyalty and ultimately create a better brand image. Although, an influx of AI and bots makes the whole customer service process very impersonal and cold as suggested by Neil Patel. Neil also suggests that chatbots should most definitely be used in their marketing strategies but the businesses should also be careful as to not “water down” their marketing.
“All good things in moderation”.