Old methods of marketing are no longer as effective as they once were. Display ads and emails are no longer standing out to customers, who are already inundated by every other brand’s advertising and emails. Additionally, as privacy updates expand, digital ads don’t perform as well as before due to the increasing difficulty of tracking users. But chatbot marketing is a new channel through which brands can connect individually to their customers, interact with them in a privacy-forward way, and guide them to the products they need — all at scale.
Our team at Spectrm has helped our clients enable over 30 million one-to-one customer interactions in 2021 alone — all accomplished through our platform that helps businesses reach their customers through chatbot marketing channels. Here are five of the benefits we’ve seen chatbot marketing bring to our clients.
Five Benefits of Chatbot Marketing
Chatbot marketing will become one of the top channels for marketers. Why? Because it’s customer-first, messaging-first, and privacy-first. Chatbots personalize interactions and create seamless conversations that are just like chatting with friends. All of this happens in a privacy-first way, and capturing zero-party data allows brands to better understand their audiences.
Adopting chatbot marketing today will give brands a first-mover advantage in the space, differentiating them from competitors and attracting customers to something new.
Here are five benefits it can bring to your brand.
Benefit 1: Be where your customers are.
For a long time, chatbots were only used on brand websites, waiting passively for customers to find them and interact with them. Why wait? Brands should go to where their customers are spending most of their time: on social media and messaging apps. 55% of consumers find out about new brands from social media, and 43% of consumers have increased their social media usage in order to discover new products. By meeting customers on these platforms and inviting them into a chat, you’re building a one-to-one relationship with them. Chatbot marketing also offers more personalization, privacy-first interactions, an always-on approach to marketing, and more.
Also Read: The Role of Marketing AI in (Continually) Understanding Customer Sentiment During a Shaky Economy
Benefit 2: Reduce customer acquisition costs.
One-to-one conversations through messaging apps is a much more direct and cheaper way to engage and convert customers. Why deal with setting up and launching expensive ad campaigns hoping to catch your customers’ attention with no guarantee of return? Instead, chatbot marketing offers direct engagement and higher conversion rates, reducing ad spend and acquisition costs.
According to our new report on the “State of B2C Conversational Marketing,” marketers said that the metric most positively impacted by their chatbot marketing efforts was their acquisition cost.
Benefit 3: Increase customer lifetime value.
Customers want to have conversations with the brands they love. They’re also looking for brands to differentiate themselves by directly engaging them in conversations in the messaging apps they already use. By utilizing chatbots, you can build a high-value, directly-reachable audience, with more personal contact than your competitors.
How? By leveraging the data from the conversations and using those insights to personalize interactions and offer products based on preference. You can also achieve this by using that data to segment and retarget your customers one-to-one with the right message, sent to the right person, at the right time.
This can reap high returns as well, considering that 78% of customers say they would be more likely to buy again from a brand if their offers were targeted to their interests and needs.
Also Read: How Businesses Can Ace Customer Retention in 2023
Benefit 4: Own your customer data.
Customers are concerned about the privacy of their data today. At the same time, brands are becoming more restricted in what they can collect as ad platforms, browsers, and devices increase restrictions. But through chatbot interactions, customers volunteer their information through private messaging interactions, offering zero- and first-party data that is yours to keep. Our “State of Social Conversational Commerce” report found that over three-quarters of customers would be comfortable giving preferences to a brand in a private and safe way, in order to receive a more personalized experience. You can then build better segments for personalization and retargeting, while gaining a better understanding of your customer.
Benefit 5: Personalize at scale with ease.
Finally, chatbot marketing allows you to engage with customers in a highly-personalized way. Leveraging conversational AI allows a chatbot to guide a customer through responsive and personalized interactions that connect them to the products they want. Then, you can re-engage customers with mobile notifications they receive directly. Gathering all of that conversational data helps personalize your future interactions as well — and brands who have poor personalization efforts risk losing 38% of their existing customer base.
A New Channel for a New Day
If older methods of marketing aren’t working and not getting you the personalization, engagement, and revenue you want — try something new. By leveraging chatbot marketing for your customer engagement, you’ll set your brand apart from the others, and engage your customers with personalized, privacy-first interactions. Customers live on their phones, and you could be right there with them.
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