How Interactive Conversational Chatbots Create Lasting Customer Impressions

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By : Kasturi Goswami

Last Updated: September 04, 2024

8 min read

Owen is the VP of sales for a successful enterprise. While Phil is the brightly ambitious founder-CEO of a rising startup. Despite being different, they have something in common. Both carry the impact of working with XYZ, a sales automation software provider.

“XYZ is great to work with. We have just upgraded to the Enterprise suite, and I must say, their support is excellent!” ~ Owen, VP of sales.

“XYZ’s reception has been wonderful for our startup. Their customer support is unmatched.” ~ Phil, Founder and CEO.

The market is saturated with solutions for every conceivable problem. But only a few cut through the noise. XYZ is one such company, doing wonderfully well thanks to its long-term business thinking.

What makes XYZ stand out?

XYZ values its customers. It is well-known for providing memorable personalized experiences.

But what is special about the customer service? 75% of its premium service is automated. Customer issues are solved in real time and are majorly self-serviced.

Too good to be true? Well, XYZ has a conversational marketing chatbot implemented on its website.

Study claims, 80% of customers value company experience as much as products and services

Salesforce: (State of the Connected Customer Report)

Conversational Chatbots In Marketing

Life without conversations is meaningless, and marketing is no exception. The entire game in marketing lies in communicating an idea or a message. In simple words, trying to initiate a conversation.

However, traditional marketing is primarily one-way communication. Today’s day and age demands better interactive two-way conversations or communication channels.

Conversational marketing is now a widely accepted strategy that involves real time communication with your customers.

Imagine a customer-centric approach that helps people move down the buying cycle as quickly as possible. This is where a means to conversational marketing comes in - chatbots.

For companies like XYZ relationships are the secret sauce to their success. And no relationship is complete without conversations.

XYZ employs a conversational chatbot to carry out open, active, and personal conversations. Now, it is easier to create meaningful customer experiences. Customers feel valued and heard.

    The current global chatbot market is growing at a CAGR of 23.3%. It will be worth around USD 27.3 billion by 2030. ( Grand View Research )

What Are Conversational Marketing Chatbots?

These are advanced automated tools for conversing with customers through chats in real time. Many of these bots are AI-powered to understand customer intent and adapt responses. However, some operate based on predefined scripts or rules. These handle specific tasks such as collecting leads or scheduling appointments.

Conversational chatbots differ from traditional ones, which execute basic tasks such as responding to customers regarding their order statuses.

On the other hand, these chatbots have a focused marketing and relations approach. They can mimic human conversations to astounding degrees. They get better at answering queries and serving customers over time.

Businesses are open to making strategic decisions rather than routine customer service tasks. Thereby changing the way they connect with their customers.

How Can Conversational Marketing Chatbots Build Relationships?

Good conversations are the gateway to building relationships. Businesses that want to connect well with their customers invest in customer experience automations - in this case, conversational chatbots.

The friction is much less. The customers need to converse with the bot and make decisions regarding the purchase. These bots can turn meh conversations into productive solutions, resulting in companies earning great business benefits.

    Are you willing to turn your business into a success? Build your bot in minutes in four easy steps.

Let’s see how these bots can assist your customers and build relationships at every step of their journey.

5 stages of the modern customer's buying journey

Stage 1

Awareness: knowing your customers

People are curious at this stage and are just beginning to realize that they have a need. They are looking for answers and becoming slightly aware of your business.

Say you have implemented a chatbot on your website. This chatbot greets your visitors pouring in from various marketing channels.

But this is no ordinary bot. It is a conversational chatbot and, hence, smart and converses like any other human agent. The chatbot puts forth a series of qualifying questions to the visitors, which it answers in real time.

Generative AI chatbots

Your chatbot is an active listener. It helps you know what your potential customers like and dislike. It is easier to connect with them.

The bot mimics the quality of compassion, building trust and showcasing a genuine will to learn about customers. You become a carrier of goodwill and a contender for being the right answer to your customers’ needs.

Stage 2

Consideration: recommendations just for them

Now that customers know the business, they start weighing their options - its competitors. Nothing kills competition more than giving potential customers the experience of premium service.

Conversational marketing chatbot Bitx assists customer Enzo in the Consideration stage of his buying journey

Your chatbot creates a personalized experience with info gathered through simple questions. This way, it offers solutions to problems rather than business offerings.

Stage 3

Purchase: proactive problem-solving

In this stage, the customer decides to make the purchase. They have agreed on the business they want to bet their money on. Now, this is where relationships become crucial.

Conversational marketing chatbot Bitx assists customer Enzo in the Purchase stage of his buying journey

Relationships should be proactive, not just responsive. Your proactiveness towards the customer is the final deciding factor affecting their buying decision.

Mass cosmetic brand is channeling premium customer experience through smart virtual super sales rep Virtual Artist, Sephora's conversational marketing chatbot, interacts with customers

Source

Sephora employs a conversational chatbot, Virtual Artist, that uses AI and AR to sell personalized skin and makeup items. It has taken great care to convert visitors into customers at first shot.

The chatbot tracks human facial features and analyzes skin tones. It also asks specific questions about skin conditions, preference for any product, etc., and suggests customer items. Not only this, it also guides the customer through the transactional process to ensure the buying process is effortless.

The virtual try-on feature shows results similar to the actual product application. This provides the customers with assurance that the product is the same irrespective of whether they buy it in-store or online.

Stage 4

Retention: steady engagement

Once the purchase is made, the relationship becomes deeper and more substantial. Retention is all about keeping the connection alive through constant, meaningful conversations.

Conversational marketing chatbot Bitx assists customer Enzo in the Retention stage of his buying journey

Post-purchase, customers may want or need support from you or your user community. Your bot keeps your customers up-to-date about new promotions, exclusive deals, and all forms of support to keep them engaged and valued.

Stage 5

Advocacy: Feedback and surveys

Sharing the word is vital for a business’s growth. A satisfied customer is often an advocate.

Your chatbot next seeks feedback and actively requests survey participation from your customers to map their experience. The bot eliminates unseen problems and ushers in trust and long-term customer loyalty.

Conversational marketing chatbot Bitx assists customer Enzo in the Advocacy stage of his buying journey

Seeing Is Believing: Conversational Marketing Chatbots In Action

Najm is turning corners with worry-free, fast, and secure insurance service

Najm's WhatsApp conversational marketing chatbot interacts with customers

Najm is a leading motor vehicle insurer in Saudi Arabia. For years, Najm was dependent on traditional phone calls for its customer support. As such, long wait times and increasing customer issues were becoming a hassle.

To address the situation, Najm decided to partner with BAB and LivePerson.

They decided to bring on board a conversational marketing chatbot integrated into WhatsApp for a customer experience transformation.

The chatbot proved to be a lifesaver. By automating routine queries and providing instant answers, the chatbot made a significant change.

  • 250k conversations/month, of which 40% of conversations were from WhatsApp
  • 60% reduction in contact center cost
  • The response wait times came down to 15 min (vs. the previous 3 hours)

Since its implementation in 2019, the chatbot can now handle various customer queries, from simple information requests to complex claims processing. (Read case study)

Sage is delivering happiness with premium wellness budgeting

Sage, myHSA's conversational marketing chatbot, interacts with customers

myHSA is a leading facilitator aiding in-house HSA (Health Savings Account) budget allocation in companies. To take better care of its growing customer base, it sought to reduce response times and empower users through self-service.

To meet these criteria, the team decided to on-board new technology. myHSA collaborated with Intercom on this project. They implemented SAGE (Spending Account Guidance and Expertise), the conversational marketing chatbot, into the platform.

  • Reduction in labor costs as 80% of customer inquiries are automated
  • Enhanced customer satisfaction as 42% of users feel empowered by self-service
  • Improved efficiency due to a 32% increase in the automated customer issues resolution rate

SAGE is a combination of an ML model and human training. The investment is proving worthy in delivering myHSA’s promise of exclusivity in customer service. (Read about SAGE)

Ready To Invest In Customer Relationships For Your Business?

Study shows that 38% of individuals prefer human interaction over chatbot

Tidio: Survey

It is crucial to understand that 100% customer satisfaction is a flawed concept, especially without human agents. But, with time, chatbots are becoming more sophisticated and accessible.

From e-commerce to healthcare, they are proving their versatility and have a wide range of use cases. They are in their growth spurts, interacting, consuming, and learning in loops. It is becoming increasingly easier to communicate with these bots as they tend to mimic human behavior.

Businesses planning to improve their marketing game should consider putting their faith in these bots. With a solid conversational marketing strategy in place, these bots can prove to be lifesavers. They can help grow your business and make your customers’ journey as easy as possible.

    If you are building a company that values customer relationships, a conversational marketing chatbot is the right choice.
    Thinkstack’s no-code AI chatbot builder makes it easy to get your custom chatbot in just 4 steps.
    Try now.
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Kasturi Goswami

Kasturi believes in blending simplicity with insight. She works primarily in DataTech, turning complex ideas into relatable stories.