Apr 23, 2021

Chatbot Marketing: Trends and Statistics

By [24]7.ai

chatbot marketing

Chatbot marketing strategy is a critical component of customer service in any modern business that functions on the Internet. About 53% of customers are prone to buy from business organizations that provide messaging facilities for communication (Intercom, 2019). Chatbot marketing technique will become the future of business strategy in the future.


Here is all you need to know about the chatbot market, their benefits to businesses, and usage of chatbots for effective business management.


What is chatbot marketing?


Chatbot marketing refers to a marketing strategy that uses computer applications to auto-generate conversations with customers for sales purposes. These usually function on business websites or applications. It allows businesses to interact with customers even at off hours, irrespective of an online customer care team. They respond to customers with definite messages that they seek answers to, based on the creator's predefined rules. Chatbots are the modern-day computerized sales representatives essential for every business to provide efficient customer service and yield profits.


Benefits of chatbot marketing


The benefits of chatbot marketing include:


Engage and qualify leads


Chatbots are used to attract website visitors with an engaging pop-up message. They collect relevant data by asking additional questions to customers such as their email, company type, or size.


High intent leads


Users spending more than a minute on the pricing page or clicking on the "Click to know more" button are very likely to be interested in the product. It immediately qualifies them and assigns a call with the sales team.


Nurture upsells users


Bots can make customers aware of the latest features and have sales representatives contact them when they are interested in upgrading. 


Improve customer experience


Chatbot customer experience is improved by never leaving the customer's questions unattended and providing them with all the leads they seek, despite the absence of an online customer care team. 


Saves resources


Improves time-cost efficiency for companies by not using human agents to attend to their customers while maintaining goodwill.


How to use chatbots for marketing?


Using chatbots for marketing is essential for the following reasons:

  • Chatbots are used to access new customer bases by integrating themselves with various social media. 
  • They send relevant notifications to customers that are useful for them instead of torturing them with irrelevant business news.
  • They make fun and interactive interactions with customers that leave a long-lasting positive impression.
  • They provide customers with personalized experiences by analyzing their social media activity and presenting them with engaging content.


Real-world chatbot marketing example


An ideal example of a real-life AI chatbot app is the Volvo chatbot. Volvo Cars Amberg, is a German car dealership that has created a chatbot that has turned out to be remarkably successful in attracting customers and providing more than satisfactory service to them. More and more customers as well potential customers visit the website with their queries and for researching prices. The Volvo chatbot immediately appears to customers as soon as they access the website and converses with them. It also provides a personalized experience to customers by providing them with customized price quotes based on their inputs.


The managerial unit of Volvo reported that their leads increased up to 300% after the incorporation of the chatbot on their website. It also helped them prioritize high-quality leads and provide them with a better-personalized experience. There is a very high probability that leads coming via chatbots are 200% more likely to make a purchase versus leads that come through offline channels. As chatbots provide immediate answers to customer's questions and even let them explore other services such as test drives.


Several other successful real-life chatbots that have improved customer experience remarkably and have benefited companies by providing more leads and increasing sales include: Swelly, eBay, Lyft, Yes Sire, and many more.


How to build your own AI chatbot app with [24]7.ai


[24]7.ai is the ideal solution to develop your own AI chatbot app. It provides step-by-step guidance to build the chatbot app by consulting developers, product managers, business executives, and client managers to shape the product strategy.

Conversational marketing chatbots


Conversational marketing chatbots help in hearing out the requirements of customers and potential customer's needs. It uses a particular code for a website and makes a chat platform appear. It even continues the conversation until a sales representative arrives.


Chatbot market statistics: growth and size


The chatbot market was valued at $703 million in 2016 (Outgrow, 2018). It  is estimated in chatbot statistics that by 2024, the worldwide consumer retail spend in the chatbot market will become $142 billion from just $ 2.8 billion in 2019 (Insider, 2021).

Chatbot market trend and forecast


80% of companies worldwide are supposed to incorporate  some form of chatbot by 2021 (Outgrow, 2018). They are increasingly popular with millennials and baby boomers (Chatbot Magazine, 2019).


Why chatbots are the future of marketing?


Every reputed business on the Internet today uses chatbots to handle customers and satisfy their requirements at any point in time without active customer service. Chatbot marketing also contributes to gathering more customers for business in various ways. With [24]7.ai Engagement Cloud, you can easily integrate and operationalize messaging into your business and serve customers more efficiently and effectively through chatbot messaging.