Chatbots: The Pros and Cons For Your Business

The era of interruptive marketing is over. 55% of consumers prefer talking to a business using Chatbots. So what are you waiting for? Find out the Pros and Cons of using Chatbots right here.

Chatbots: The Pros and Cons For Your Business

Are you using conversation marketing to grow your business?

The era of interruptive marketing is over. 

Consumers don’t want to be spoken to, they want to communicate with brands as part of the sales process. Enter conversation marketing.

While social media has allowed this to take place for years, the latest trend to take advantage of conversation marketing is chatbots.

Can you benefit from introducing a chatbot into your digital marketing strategy? 

In short, yes.

Technology is always coming up with new ways for you to improve. Today, artificial intelligence is a fairly common piece of technology.

With Siri on your iPhone or Amazon Echo in your living room, artificial intelligence is now accessible everywhere. 

Businesses are using these advances in technology, and the resulting tools, to their advantage. This has seen the increased introduction of chatbots into marketing strategies. 

If you're considering using Chatbots to grow your business, here's what you need to know.

What is a Chatbot?

Chatbots are computer programs and algorithms designed to communicate with human users through voice or instant message. While Facebook has introduced simple chatbots as part of Facebook Business profiles, more and more businesses are adopting this technology on their websites and landing pages.

Chatbots allow you to automate a huge part of your customer communication process without sacrificing customer service and support. 

And with studies showing that 50% of consumers are more likely to make a purchase via direct message, chatbots can impact tangible business outcomes.

Chatbots provide your business the convenience it requires and enables you to instantly connect with consumers in real-time. This can be done 24/7 too, so your business is effictively always open.

man holding chatbot graphic

What are the Pros and Cons of using Chatbots?

Pros

  • Fast, immediate customer service: The trouble of waiting for a human to retrieve queries is gone. 

  • Improved customer satisfaction: Faster responses mean happier customers. 

  • Reduced labour expenses: Reductions in employee wages can provide valuable cash to be invested back in your business. 

  • Multipurpose: Systems can be programmed to manage various aspects of your business such as advertising or customer ordering. 

Cons

  • Limited responses: Chatbots aren’t perfect, simple ones may have only limited responses for customers and not all customers will get the answers they want. This can increase frustrations.

  • Complex is expensive: There is limited availability of data and the time needed for self-updating. This process can be slow and costly and provide ineffective responses to customers. 

  • Not for everyone: Some businesses are far too complex for chatbots to be practical. Providing information for any possible scenario or circumstance is both timely and costly. 

  • Bad memory: It is very important that your chatbot is well optimised. Systems cannot memorise conversations it’s already had. Make sure that the program is able to understand users’ queries and respond accordingly.

Did you know that 55% of consumers prefer to talk to businesses using a chatbot? The success of Facebook’s ‘Messenger’ App has brought chatbots to the mainstream.

Facebook may take lead spot, but there are a collection of brands succeeding with chatbots systems in their own industries. Some include: 

  • Starbucks: Taking the food and beverage industry to new heights. Chatbots allow customers to order via the Starbucks app. They are notified of item costs and expected pick-up time. 

  • Lyft: The ridesharing company allows users to request a ride via the Facebook Messenger app. The bot provides driver information, location and photo I.D. 

  • Spotify: Utilizing Facebook’s Messenger app, the chatbot makes it easy for its users to search for, listen to, and share music.

  • H&M: Quizzing customers about their style preferences, H&M’s chatbot makes clothing recommendations tailored toward each customer’s taste. This uses chatbots as an effective way to upsell customers.

Chatbots aren’t just for major companies either. Small business owner and painter Richard Gabriel uses chatbots to nurture leads. He explains “since adding a live chat option to my website I’ve seen an increase in leads. The truth is you can’t be everywhere, and you might be losing out on leads because potential customers can’t reach you. Chatbots provide quick and simple customer service. By answering questions and providing value, you can nurture leads and see an increase too.”

Chatbots have introduced new ways for you to interact with current and possible customers. As a result of combining both digital and in some cases social media marketing practices, you can save time and money while servicing your audience. 

Do you think your business can benefit from chatbots? 

Let us know in the comments!
 

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