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How are Chatbots used in Marketing?

Pragya Soni
Jan 13, 2022

Isn’t amazing how we visit a marketing site and a tiny box appears on the screen. Asking us about our choices and guiding us for the same. And even it guides us to the things we are genuinely interested in.

Well, that tiny box is a type of chatbot. Let us understand how this tiny box is setting the base for big industries and brands. In this blog we will read the role of chatbots in marketing. We will also see the advantages and limitations of chatbots in the marketing sector.

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What is the meaning of Chatbots?

Before jumping to the role of chatbots in marketing. Let us first clear the meaning of chatbots. A chatbot is basically defined as a computer program. It helps in simulating and processing human conversation in both written and spoken.

It allows humans to interact with digital devices and machines. The best part of chatbots is that it makes the interaction look like communication with a real person. Chatbots serve different purposes, it can solve a single query as well sophisticated questions.

Types of chatbots

There are basically two types of chatbots that serve different purposes and have different processes.

Task-oriented chatbots

Task-oriented chatbots are also known as declarative chatbots. They are single-purpose programs and deliver one function. They use simple machine language and NLP. Declarative chatbots have highly specific and structured interaction.

Their applications include, think robust, interactive FAQs, etc. they make the experience of users conversational and are the most popular chatbots in current. They are more basic in nature as they use the basic level of NLP and don’t involve a variety of variables.

Data-driven chatbots

Data-driven chatbots are also known as predictive chatbots. Sometimes, these chatbots are also referred to as virtual assistants and digital assistants. This type of chatbots is more sophisticated and complex than the previous type.

They are more interactive and personalized. It employs all the techniques such as natural language understanding (NLU), natural language processing (NLP), NIC, and machine learning (ML).

Predictive chatbots employ predictive analytics and intelligence. It enables personalization based on user profiles and user behavior. It upgrades itself according to the user’s preference over time and provides recommendations according to it. Alexa and Siri are examples of data-driven chatbots.

Role of chatbots in marketing

Chatbots have marked its presence in the entire world. From outer to the business world, chatbots have spread in the entire globe. The famous marketing industries that have utilized chatbots are e-commerce, travel, real estate, education and healthcare.

Since the last few years chatbots have revolutionized the marketing sector. A chatbot in marketing streamlines the marketing funnel into an automated conversation. It drives a valuable action from its actions. It offers several facilities in the field such as lead generation, guided shopping and performing human-like conversation with the users.

By learning the preferences of customers and studying their behaviors, chatbots stimulate customer’s purchase. It enhances customer’s engagement and offers recommendations to them.

Chatbots help the brands and companies to connect with each other globally. Assisting streamline consumer communication, chatbots bring prosperity and popularity to the organization.

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Advantages of chatbots in Marketing

Chatbots are the gems of the marketing world. Due to their endless benefits, they serve as the present and future of marketing. Though, chatbots have endless benefits, some major ones include:

Enhance customer engagement

One of the greatest advantages of chatbots is that it drives traffic, by enhancing customer engagement. According to a report, engaged customers are quite essential for a company's profitability, revenue, and relationship growth.

By offering an interactive way to engage customers, chatbots increase the visibility of the company at the global scale. It helps the customers to connect with the company and the market.

Chatbots help in drawing traffic by giving immediate attention to the customers, solving their queries, guiding shopping ways, and by giving recommendations according to their behavior.

Organize declared data

Chatbots collect declared data based on the audience. Declared data is basically defined as the information that is directly offered by the customers by different interactions. It assists the marketers to detect the needs, wants and desires of the customers. It also helps in validating the demographic data.

Chatbots rescue the marketing agencies by gathering the declared data. The collected declared data thus helps in personalizing the customer journey, conducting marketing research and extracting customer insights.

3. Personalize customer experience

Chatbots employ a feedback-driven process which helps in personalizing the customer experience. For this chatbot track every single step of the customers from ad click to purchase at scale. Here also, declared data plays a significant role.

Chatbots trace the customer behavior and actions. Then, they guide the customers towards your products or brand. Thus, increases the visibility and desirability of your products and brand.

Drive traffic on new channels

If you are conducting your business by a social media platform. Chatbots can help in driving traffic to your channels. Such kind of chatbots are called lead generation bots. It helps in qualifying and acquiring customers. They generate more qualified leads by declaring data and personalized customer experience.

Automate social inbox

Chatbots serve as an automated social inbox. They entertain the customers and respond to their queries anytime.

Generate insights

By gathering declared data and analyzing customers actions overtime chatbots can indirectly derive the insights. This enhances remarketing of the business. The data driven from these insights can be used to segment and retarget customers.

Build brand status

Chatbots increase brand loyalty and status. They give global recognition to the business.

Cut costs

Chatbots cut several costs during the process and thus improve ROI. By increasing customer engagement and optimizing their behavior, chatbots increase ROI of the businesses.

Increase conversion rates

Chatbots increase conversion rates in marketing sector by following ways:

By offering a seamless experience.

By offering personalized experience.

By offering lead generation tools.

Due to their 24/7 availability and rapid responses.

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Limitations of chatbots in marketing

The limitations of chatbots in marketing sectors are as follows:

Can handle only one basic question

At a time, chatbots can handle a single question. They can’t solve complicated queries at single times.

2. Can’t think out of the box

Chatbots can’t think out of the box. They can’t solve unscripted questions.

Sounds too mechanical

The conversation tone of chatbots is quite mechanical. They just respond in programmed language and lack emotions and sensitivity.

Require maintenance

Chatbots require regular maintenance. Thus sometimes, it becomes a costly process.

Difficult to design

The creation of chatbots is based on natural language processing, which is a complicated process. Thus, chatbots are quite difficult to create.

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All advantages and limitations of chatbots are related to one another. Chatbots help in driving traffic and optimizing customer experience. They drive engagement scale and help in optimizing ecommerce funnel and conversion rates. By gathering declared data, they help in managing insights.

Thus, despite the size and status of your business, it is essential to employ chatbots in every business. So, if you’re not employing chatbots in your business, you are definitely missing something.

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How are Chatbots used in Marketing?

What is the meaning of Chatbots?

Types of chatbots

Task-oriented chatbots

Data-driven chatbots

Role of chatbots in marketing

Advantages of chatbots in Marketing

Enhance customer engagement

Organize declared data

3. Personalize customer experience

Drive traffic on new channels

Automate social inbox

Generate insights

Build brand status

Cut costs

Increase conversion rates

Limitations of chatbots in marketing

Can handle only one basic question

2. Can’t think out of the box

Sounds too mechanical

Require maintenance

Difficult to design

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