8 Reasons Why Your Business Needs a Chatbot, Not an App

Reasons Why Your Business Needs a Chatbot, Not an App

A chatbot is not just another AI program that can be taught to exchange instant messages with people. It actually has a huge potential that will bring your business to a higher level, attract more visitors to your e-commerce website, and convert them into customers quickly and painlessly. According to the Business Insider survey, about 80% of businesses will be extensively using chatbots by 2020.

In today’s ever-changing world of technology, it’s not enough to just create an app and leave it as it is. The app should be constantly changed with updates, upgrades, and new UI design, let alone all those sales and marketing efforts that are needed to advertise each new release. All of this can be quite costly and time-consuming, and still you may have not enough downloads for all those efforts to pay off.

Today you can easily build your own chatbot based on familiar messaging apps, such as a Whatsapp chatbot or a Facebook Messenger chatbot. As a result, the invested effort isn’t that high, but the outcome will surprise you. What was hard to achieve with a traditional app, has become reality with a bot meaning that now bots can actually replace apps. Many popular brands, such as Uber, H&M, or Pizza Hut, are already using chatbots, and probably your brand will be the next successful example.

Let’s see how an artificial intelligence chat bot can help your business as compared to a traditional app, and why you should consider using a chat robot.

1. A chatbot can complement or even replace a team of customer support agents  

Many companies still employ human agents who interact with customers in a chat and help them troubleshoot various technical issues. However, customers ask basically the same questions, so it could be a waste of time for an agents to answer all those questions over and over again. Even canned responses don’t always help, as additional questions may arise during the troubleshooting process. But you can program a chat robot to answer those questions and interact with customers in an AI chat based on several algorithms. This may significantly simplify the entire workflow, so you can focus on more important tasks. In addition, a talking bot can process huge volumes of requests as compared to humans. According to research by Customer Relationship Metrics, human agents can handle only 3 chats at a time, so a smart bot has more capabilities here.

2. With an AI chatbot, you can sell your products or services with just a couple of clicks

Sometimes it may be hard for a visitor to make a choice in your online store. They may spend lots of time comparing different items and eventually abandon the shopping cart. However, a chat robot can act as a virtual shop assistant and help the shopper to make this hard choice in the form of interactive messages, so-called “conversational commerce”. As a result, your products or services are sold right in the AI chat within a couple of clicks. Moreover, an artificial intelligence chat bot is available 24/7, so it will act much faster and convert a visitor into a customer within minutes.

3. A chat robot can push your potential customer down the entire sales/marketing funnel within a short time period

Without a chatbot, you would use traditional email marketing or SMM tactics, such as Facebook posts. But let’s face the truth: quite a few people actually read your email campaigns as well as Facebook posts and ads, not to mention the fact that they hardly click any links in those marketing media. So what do you get in return? You invest lots of effort in your marketing campaigns and may get almost no ROI, as those campaigns act more like “try and error” approach. On the contrary, a Facebook chatbot implies immediate interaction, so the people are much more likely to view the bot’s message and even respond to it. As a result, you get more engagement. According to Mobile Marketer, 1.4 billion people interacted with an intelligent chat bot in 2015, and it was just a couple of years ago.

4. An AI chatbot can help you analyze your market

Actually, you can use chatbots to research your target audience and collect various metrics. Chat robots can remember the behavior of your customers and help you identify the reasons why, for example, e-commerce store visitors abandon their shopping carts or leave the chat. They can also assist you with studying the customers’ interests and preferences based on their questions and problems. There’s even a platform called Chatfuel that can help companies tailor their intelligent chat bots to the needs of their customers. There are also tools that analyze user behavior, such as clicks and downloads, on your website or even inside the software product UI. However, it would take much more time and money to build such analytics app and collect data than it would take with a bot.

5. An artificial intelligence chat bot can extend your target audience

If your target audience is quite broad, a chat robot can attract younger people to your brand. The reason is that people in their 20s are active smartphone users and prefer text chats to other kinds of customer support. According to the survey by Nielsen, Facebook Messenger is the second most used smartphone app as for 2016. Messenger chatbots are a perfect fit for smartphones and for younger people as well. The latter would be excited to talk to a bot and shop with your intelligent chatbots. The reason is simple: they would be using the familiar communication channel and thus feel more comfortable and engaged. Finally, chatbots are very easy to use, and this would be appealing for the non-techie audience.

6. An AI chatbot can increase your conversions with geo targeting

A talking bot can extend your target audience not only by age, but also by geolocation. Due to 24/7 availability, a smart bot can act in all time zones, thus attracting customers from all over the world. It would be much faster than to set up and run a geo targeting campaign for a traditional app.

7. An artificial intelligence chat bot can help your customers better understand your product

If a product appears to be complex to potential customers and they have no time to read lengthy manuals, there are at least two options. The first one is to schedule a personal demo or webinar showing the functionality of the product and its benefits that put it ahead of competition. Although it’s a good way to present the product to a potential customer, it may require quite a lot of time and resources. Another way is to talk to a robot who’ll help the customer understand the benefits of your product in a personalized manner of an AI conversation. It’s a quicker, easier, and more fun way in comparison with a live demo. A good example is IKEA – they converted their furniture assembly manuals into a chat interface.

8. An AI chatbot can improve the reputation of your brand

An effective chatbot strategy can make the customer experience more pleasant and interactive. It builds trust and shows the customers that you know what is chatbot and use the latest technologies to make their lives easier. Eventually, they would feel grateful that they receive such personalized help instead of downloading apps and trying to figure out how to use them.

Chatbot Use Cases

Here are some real-life use cases of AI chatbots that we consider interesting.

  1. An App Turned into a Chatbot. There’s a story by P. Daniel Tyreus, a software developer, who converted his app into a chatbot on Facebook Messenger. The app is called Hayfever, and it’s giving the user a list of potential allergens based on provided symptoms. At an early stage, the app worked good, but eventually it ended up getting not that many downloads, so the owner decided to turn it into a chatbot.
  2. Online Dating Chatbot. According to Chatbots Magazine, founders of the Leeloo.ai startup created a ChatGirl smart bot that attracted male visitors to dating websites. The idea is simple: the guys talk to a bot, are engaged with this flirty AI conversation, and end up creating an account at the dating website. It took only 14 days to create and teach the dating bot; we bet that it took much less time than it would take to create some Tinder-like dating app. 20% of chat participants had no idea that it was actually an AI chat.
  3. Election Day Chatbot. The same Chatbots Magazine describes another story that is worth attention. In 2016, during the presidential election, a Facebook Messenger chatbot was helping the voters to find their voting locations. The AI conversation would start after people visited the Facebook page of a political organization. The people just entered their addresses in the AI chat and got info about the location where they could vote. Those locations were taking from the voters’ database by using Google API.
  4. Medical Chatbot. KGW.com reports about Rick Bakas, a digital marketing professional, who developed the Facebook Messenger chatbot called ABBI. This AI chatbot helps people choose medical marijuana based on their disease, e.g. cancer, multiple sclerosis, anxiety, etc. The talking bot doesn’t make any diagnoses, it just gives recommendations. However, it’s still actively used and is completely free of charge.

Of course not all businesses may need a smart bot, but almost all businesses involve customer interaction, so it’s a good idea to consider, especially if you’re proactive and enthusiastic about future technologies. We at Arsum can help you develop an artificial intelligence chat bot strategy for your business and adapt it to needs and requirements of your target audience. Contact us today and we’d be happy to consult you.

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