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Chatbot: What it is and why it is important for companies?

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Chatbot messenger: artificial intelligence and machine learning to optimize business strategies.

The immediate interaction between company and customer is a fundamental tool to achieve significant business success: about 30% of consumers interact with virtual agents at least once a week constantly increasing the global turnover of chatbot services that will arrive in 2024 close to 995 million dollars.

The data emerging from the research of the digital communication company Amdocs and the reports of Transparency Marketing Research, a leading organization in the field of market research and analysis, leave no room for doubt: instant messaging systems, commonly known as chatbots, represent the last frontier of digital marketing 4.0.

Instant Messaging Apps are now an integral part of every individual’s everyday life, people love to communicate in an immediate and essential way, not only on a personal level, but also in the commercial sphere: according to Facebook, about 63% of users register a particularly positive opinion companies willing to communicate directly with their customers.

Within a market strictly dependent on the direct interaction between brand and customer, it is essential for company marketers to develop personalized communication and promotion strategies that are particularly focused on the needs of the specific user: a chatbot is undoubtedly the most appropriate tool to obtain considerable results in the innovative world of online sales.

What is a chatbot? What are its characteristics?

The chatbot is a software based on artificial intelligence that can simulate a one-on-one conversation with the user and provide the answers necessary to meet the needs of customers: in other words, it is a conversation window managed directly by the companies for entertain direct and immediate relationships with its consumers.

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The particularly innovative features that distinguish the chatbot are the immediacy of communications, the ability to record multiple data and the ability to provide the user with an interactive and immediate experience: any business with the aim of differentiating themselves from their competitors and building a valid online reputation will have to invest its resources in the implementation of its marketing strategies with artificial intelligence and machine learning.

There are two particular types of smart platforms …

1# Informative chatbots

software that base their functioning on well-defined and previously planned rules. Information bots have basic and limited functions and are usually used to find information about the user.

2# Utility chatbots

Complete and structured platforms with advanced technologies, able to automatically learn multiple information and to provide the user with detailed and qualified indications through fluid and natural conversations. Online chatbot utilities do not require programming and are able to understand natural language by constantly optimizing its performance.

Chatbot: The possible functions of the software within a company

The chatbots can be essential tools to optimize your web marketing strategies, we find out what are the most common application areas of smart instant messaging systems within the commercial realities …

Customer service and customer support

The support activities and customer care are without scope the ideal fields of application for chatbots: the instant communication platforms allow the company to provide constant support 24 hours on 24 to their users by sharing qualified information and answering the most frequent questions of customer center. A chatbot is the ideal tool to automate the communication between brand and consumer and make it efficient and immediate.

Business automation

A chatbot platform is able to automate business processes and functions significantly optimizing costs and timing: with the implementation of an artificial intelligence system, the company will be able to perfect the use and analysis of business data.

E-commerce

A smart bot system can be an indispensable tool to optimize the shopping experience by increasing sales and conversions: the automated chat is able to easily develop targeted marketing messages convincing the user to perform a specific action.

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Information and entertainment

A chatbot messenger software can be essential for developing relational marketing and entertainment: the distribution of personalized content, based on information obtained through automated chat, is an activity aimed at improving the corporate image and sharing a customer satisfying experience.

Outbound activities

The implementation of its corporate communication strategy with the use of a chatbot messenger within the Social Network can be the winning tool to establish a relationship of mutual trust with the customer: a company present and willing to communicate with their consumers in an immediate and informal way is particularly appreciated by their target audience.

Chatbot: The benefits of smart communication for your business

A recent US business survey conducted by BI Intelligence highlights the constantly growing trend of the business regarding smart communication: automation through the use of chatbot has enabled US companies to save about $23 billion in 2017.

It is evident that artificial intelligence and the immediate communication technology systems do not only lead to an improvement in business performance in the strategic field, but also guarantee a considerable optimization of resources in economic terms.

Let’s find out what are the benefits that the use of a chatbot guarantees to a commercial reality …

Improving assistance and communication

The use of a chatbot guarantees the customer constant assistance 24 hours a day: immediate and instant communication contributes to the promotion of an authoritative and qualified company image.

Automated data collection

The chatbot software is able to store user requests and store useful information to personalize the marketing campaigns of email marketing and digital marketing: the artificial intelligence system automatically categorizes the collected data and provides a quick and immediate analysis.

Optimization of the purchasing process

An automated chatbot is able to guide the user during the buying process by providing immediate and personalized information and optimizing the corporate image in the eyes of the consumer.

Incentivisation of loyalty

The chatbot platforms are particularly suitable tools for sharing and promoting discounts and personalized offers: the one-to-one communication guaranteed by the instant messaging service is able to dedicate to each contact a unique and original type of communication, encouraging customer loyalty.

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Brand personality

With the use of a smart bot, the company brand assumes a virtual identity: the user, through direct messages, has the perception of communicating directly with the company, establishing a personalized contact with the customer and directed to loyalty.

Chatbot: 5 tips to start using an instant messaging tool

Here are 5 useful tips to start using a chatbot software in an appropriate way …

1) Develop a suitable digital marketing strategy

A smart bot system is an indispensable tool for implementing the functions of a company, but before investing its resources in creating an instant messaging business platform, it is necessary to have a clear understanding of its objectives and its marketing and communication strategy: the chatbot is a tool to be integrated within its own communication plan, by itself it is not enough to obtain significant results.

2) Define the primary features

Analyzing the objectives to be achieved, it is possible to elaborate a list of functionalities to be assigned to the chatbot: it is recommended to start with the priority activities and then implement the operation at a later time.

3) Design conversations

Designing conversations and planning the user experience trying to predict the user’s actions is an indispensable activity to ensure the proper functioning of the chatbot software: trying to analyze the user’s needs the company will be able to provide authoritative answers in any situation by creating a real workflow of your bot.

4) Monitor the chatbot with training systems

The activity of a smart bot starts with a training phase and then continues during the actual online use: the chatbot is a smart system able to constantly optimize based on the information shared by the users and for this it requires an initial period of tests to test their functionality.

5) Periodically analyze the collected data

A chatbot is a tool able to find innumerable information about the user thanks to the direct interaction system: the company must periodically analyze the collected data in order to optimize its marketing and communication campaigns, personalizing them and making them targeted based on the different needs of consumers.

Do you want to grow your business and improve your business results?  

A.H. Sagar is Operations Manager at CYONWO, a company that committed to helping businesses with online marketing. A.H. has more than 6+ years of experience in digital marketing. His expertise helps him to be a professional blogger and he loves to share his ideas, tips, tricks and information by blogging.

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