Read ReputationUP Coach’s new guide to chatbots in marketing. Find out what they are, how they work, and what the benefits are for companies.
What is a chatbot in marketing?
Before answering this question, we must bear in mind that this strategy comes from conventional marketing and has gained more strength over the years.
Their potential is the increased probability of purchase since they are available 24 hours a day.
Revenue from the global chatbot market will rise significantly, as shown by the following graph:
In 2027, it will arrive at 454.8 million US dollars, compared to 40.9 million dollars in 2018; a significant income difference.
Now that we have clarified the importance of this technology, we can answer the previous question: what is a chatbot in marketing?
The Cambridge Dictionary defines it as:
“A computer program designed to have a conversation with a human being, especially over the internet.”
So, we can say that it is a program that manages to communicate with a user, providing responses according to its automation.
Its purpose is to answer questions and initiate conversations with buyers who enter the web.
Chatbot features
One of the main characteristics of a chatbot is that it is not necessary to download any application to use it.
We could even say that more than a feature, it is a huge advantage.
Over the years, consumer behavior has changed: immediacy has become a priority, and social media has become a purchasing platform.
For this reason, chatbots provide the necessary information to solve all kinds of doubts.
In this way, the user quickly reaches the purchase of the product.
It is an inbound marketing strategy in which you can sell from any device with an internet connection, without forms, emails, or subscriptions.
The main features of this automated technology are:
- The chatbot understands the context of each conversation to reach the purchase objective;
- A personalized service creates loyalty and connection with the customer;
- Communication is synchronous to be effective.
How do chatbots work in marketing?
Just as it is difficult to understand a human being, it is also difficult for a bot to communicate artificially with a user.
Therefore, they use different programming languages:
- Natural Language Processing (NLP): used to divide the buyer’s words and sentences correcting misspellings and emotions;
- Natural Language Understanding (NLU): this step helps to understand the client. Use algorithmic tools to create the conversation and tell the bot how to respond;
- Natural Language Generation (NLG): its objective is to provide the interested party with a good experience on the website.
This last step requires going beyond the programmed responses, using a natural language, consulting the necessary information to provide the user.
Taking into account those mentioned above, we can find two types of chatbots:
- Simple: the software works through a series of commands and keywords that are prepared to answer questions;
- Smart: this one has a more complex level. It does not work based on questions or keywords but on the text itself.
Offer a variety of information or dialogue for a more authentic and human experience.
Chatbots are a marketing strategy, which gives the consumer immediacy.
Chatbot strategies in marketing
When we talk about marketing, we must not leave aside that word that transforms all strategies: competitiveness.
The advancement of technology is constant, so much so that the increase in self-services is evident daily.
If you go to a store in person, you can pay for your purchase without depending on a person.
The same happens with online stores. Thanks to chatbots, the ability to automate conversations achieves a significant advance in sales.
For that reason we explain the advantages it offers to your company:
- Saving time and money: with this technique, you can forget about the waste of time and sacrifice.
You will no longer have to pay a person to take care of the user service in case of doubts or questions about a product or service;
- Customer increasing: achieved by gathering information to provide a practical support experience.
Interaction automation allows users to share what they are looking for; it is a data intelligence management strategy.
In this way, the agent is alerted to provide good service;
- It serves as a guide: consumers do not always know where to go, so the bot can answer questions and redirect them to satisfy their needs;
- 24h assistance: customers can clear up doubts or access information at any time;
- Synchronous interaction: previously, the only way to have a dialogue with a buyer was through email.
Thanks to this new technological advance, conversations have become closer, more enjoyable, and real-time.
This experience will achieve a marketing funnel with a structured process whose purpose is to get closer to the customer.
What industries use chatbots?
E-commerce and chatbots are undoubtedly a duo that can promise a specialized service in customer care and increase sales.
Next, we will name the industries that have benefited from the chatbots strategy:
- Banking sector: it is considered the area that received the highest benefit from this service since customers can access it at any time of the day;
- Health: the considerable increase in this chat has been seen after the covid-19 to speed up the process of appointments or exams;
- Tourism: social networks have become an essential connector for consumers.
They install this type of technology to initiate the interaction and redirect the user where they want.
Examples of chatbots in marketing
Large companies have made it clear to us that the good functioning of chatbots helps increase customers and sales.
Is the case of Marriott Bonvoy, a hotel brand distributed throughout the world with a high quality service that has its automatic chat on Facebook Messenger.
The bot’s technology makes it possible to identify the language of the potential user, and it helps to have a good experience with the website.
On the other hand, the US passenger railroad Amtrak has its chat on the official page.
And finally, Bankia provides an immediate service with its chatbot from the application. It only takes a few seconds to get a response.
With this, we can say that both for sales and services, the chatbot facilitates interpersonal communication between company and client.
Tools for chatbots in marketing
Now that you know the importance of chatbots, we will tell you the best tools that you can take into account for their creation:
- Centribot: it is a type of bot integrated into channels such as WhatsApp, Facebook Messenger, Telegram, and e-commerce platforms.
In it, you can train the bot and provide personalized service;
- Botslovers: it was basically created to improve the user experience in e-commerce. An example of the large companies that have it is El Corte Inglés;
- Inbenta: is a bot that stands out for being conversational; it connects with the client thanks to its artificial intelligence.
What are the benefits of chatbots in marketing?
Throughout the article, you have noticed the different advantages that a chatbot offers.
In this case, we will list five benefits:
- Immediate responses: the first step today to make a purchase is to communicate through a chat.
From there, it depends if the user wishes to purchase a product or service;
- Obtaining data: after answering the main bot questions, the buyer obtains the necessary information to get where it wants in a natural and friendly way;
- Improving the company reputation: with its 24-hour service, it enhances customer service one hundred percent, generating positive reviews;
- Feeling of closeness: thanks to this technology, the company can generate its own language of familiarity and attention to each person;
- Lower costs: reduce the cost of personnel and increase sales.
Are chatbots the future of marketing?
Absolutely yes, we are in the change process, and chatbots are a breakthrough in global marketing.
Thanks to our ReputationUP Coach team, you can have the best marketing tools and knowledge to increase your sales.
If you are already convinced that the chatbot is a good ally for your company, ReputationUP Coach can help you plan a strategy based on it.
It can give you a check-up of your site and web design and identify the weak points, installing tracking systems and reputation monitoring.
On the other hand, you will learn the copywriting of advertising texts to achieve marketing objectives from an analysis of the target market’s conversations and the brand’s identity.
A series of digital PR actions will be carried out to position the site and analyze the performance of the publications to guide investment.
For your company to be successful digitally, you need professionals who can meet your goals.
Conclusions
Through this text, you have discovered what chatbots are in marketing and how they work.
From this article, we can draw the following conclusions:
- The purpose of the chatbot is to answer questions and initiate conversations with users who enter the web with the interest of acquiring a product or service;
- It can be sold from any device with an internet connection, without forms, emails, or subscriptions;
- Chatbots are a marketing strategy, which gives the consumer immediacy;
- The banking, health, and tourism sectors are the ones that have had the most positive reactions to the chatbot;
- The benefits it provides are immediate responses, obtaining data, improving the company’s reputation, a feeling of closeness, and lower costs.
ReputationUP Coach will introduce you to the various logics of 1to1 marketing, the purpose of which is to build loyalty, increase brand perception, and the conversion rate of your services.
ReputationUP Coach te dará a conocer las diversas lógicas del marketing 1to1, cuyo propósito es fidelizar, incrementar la percepción de la marca y la tasa de conversión de tus servicios.