How many leads do you want?
More.
More is always the answer.
To deliver ‘more’ leads, some of the
largest companies in the world are turning to artificial intelligence — more
specifically chatbots.
How can a chatbot turn 28.3{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} of conversations into a lead and 23.7{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} of leads into sales?
This is exactly what we will cover here.
In this article, we will cover the many benefits of turning to conversational software (aka ‘chatbots’) to grow your business, increase conversion rates, and generate leads.
Chatbots help increase conversions
A chatbot, particularly one focussed on
lead generation, will impact businesses in two major ways.
The first is, obviously, lead generation. A
fine-tuned chatbot will create high quality leads at a faster pace than any
other tool you may have tried before.
The second is business insights. A chatbot
is a fantastic tool to keep your understanding of your business, your industry,
and your customers up to date.
I know generating more leads is really what
gets you out of bed in the morning, so I’ll start with that. Please stick
around for part two, though, as you’ll get an understanding of just how deeply
a chatbot can impact your business.
How do chatbots increase conversions?
1. By providing a more natural path to conversion
Websites are surprisingly hard to use, even
today.
Though navigating the internet has become
second nature to most of us, some of the aspects remain complex.
This is not news to us CRO people. It’s
extremely common for websites to completely fail even the simplest user tests.
Forms, buttons, navs, modals, menus, images, call-to-actions, copy — all these
things can (and often do) prevent the user from achieving their primary goal on
your website (and you from capturing that sweet sweet lead).
No wonder websites only convert at an average of 2.35{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760}
What can chatbots do about it?
Chatbots are conversational software. They
provide users with a conversational interface, allowing them to simply… talk.
There is no complex user interface to deal
with. Few buttons (and users are not forced to use them), no popups, no forms
— just a chat window.
By allowing users to simply talk, chatbots alleviate most of the pain and drive them (conversationally) to their ultimate goal. Oh, and grab that lead for you.
2. By answering questions
Did you know that 20{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} of ecommerce purchases are abandoned because of missing or unclear information about the product?
Chances are, you’re missing out on
conversions for the exact same reason, especially if you work in a complex or
niche industry.
Sure, you could remedy this by stuffing
your website and landing pages with as much content and information as you can.
But then you run the risk of over-stuffing your page, confusing the reader, and
driving them away with a headache.
What can chatbots do about it?
The great thing about chatbots is they are
on-demand goldmines of information. The keyword here is ‘on-demand’.
Instead of stuffing all the content on your
page and hope for the best, a chatbot is a helpful assistant. It sits on the
page, ready to answer any question the user has about your service, products,
shipping, return policies — anything.
In 2017, 69{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} of consumers interviewed said they prefer engaging with chatbots because they provide instant answers. Why wouldn’t you want to provide that level of instantly gratifying help? Answering the users’ questions has a direct impact on conversions, making them a lot more confident in your offer.
3. By personalising the user experience
I could tell you about the fact that
chatbots are fully automated, the most on-point lead generation assistant
you’ll ever have, running 24/7 without ever taking a break or turning up late
for work.
I could tell you that chatbots can work at scale without missing a beat. A professionally developed chatbot can handle over 150 conversations per second without missing a beat.
But instead, I’ll tell you about how an
AI-powered chatbot can provide the most unique and personalised experience to
each user (24/7 and at scale).
As a conversational interface, your chatbot
sits between your organisation and the user. It can connect to tools like your
CRM to know everything there is to know about the user it is talking to. It can
connect to tools like your CMS to know everything there is to know about the
content you have available.
A professionally built chatbot can use its
integrations to understand the user it is talking to, know where they are in
their journey with your company, and offer the best next step.
What do you think the impact of a highly tailored and personal conversation has on conversions? Some businesses are achieving a 20{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760}+ conversion rate thanks to this exact approach.
Beyond conversions: how chatbots help you know more
It also has a series of background,
business-wide impacts that may not be immediately evident.
Now that we have covered the direct impact
and got you all excited, it’s time to look deeper.
Let’s look at how chatbots improve the mechanics of your business, better your offering, and continuously helping you perfect your flywheel.
1. Diagnose funnel leakage
To grow your business, it’s often best to
first look at your funnel leakage before pouring more leads (or traffic, or
phone calls, etc.) at the top.
Funnel leakage — leads that just drop off
your funnel without ever reaching the final step — is often responsible for
your biggest lost. You spend all that money on marketing getting juicy leads at
the top and poof, gone.
Of course, the common advice you will find on this is to look at Google Analytics. While this is a fantastic first step, Google Analytics has limitations.
It’s often hard to use, hard to pull out
insightful reports, hard to deal with cookied/non-cookied experiences, hard to
tie sessions to actual users, and so on.
How can a chatbot help you plug the leak?
With chatbots, you get to log the entire
experience in a coherent sequence. Not only can you see exactly how the user
interacted with your funnel, it’s also all in natural language. No need to make
assumptions, figure out attribution of a click from one page to the next —
it’s all there in plain English.
Analysing this data will give your business
a tremendous amount of information about your funnel.
Where do people drop-off? What step is it they don’t understand? Which offer is just not resonating with them? At which point during the interaction do they ask lots questions?
And much more.
2. Understand content dissonance
Content dissonance is another reason leads
fall through the cracks.
Your users may experience this when your
website’s copy, tone, and feel changes from one page to the next. If there is a
gap between what you say on your homepage and your landing page, users are
quick to pick it up and… well, give up.
This is how a chatbot can help.
Remember how chatbots allow users to ask
questions whenever they want? At any step of their interaction (aka the
funnel), the user can question this super smart robot about what’s going on.
This is how you spot content dissonance.
Trawl through your chatbot’s analytics and the conversation logs, and find out where users get confused. Confusion is a dead giveaway. Explore that step, compare copy, and make sure everything matches.
3. Understand missing content
What’s worse than content dissonance?
Missing content.
Using the same technique as above, your
business will quickly learn the content that’s missing from your pages.
Whether it is missing FAQs, missing
information on your product pages, potential blog posts — you will find it all
in your conversation logs.
No wonder top SEOs of the world are also turning to chatbots to fuel their content creation strategy. It’s a goldmine of information on what your customers want to learn from you, directly from the horse’s mouth.
4. Learn from interactions
Finally, and this is a personal favourite,
chatbots help you learn more about your customers.
Conventional wisdom tells startup founders
to ‘go out and talk to customers’. Engage with your target audience, they say.
Figure out how they talk about the challenge you’re trying to fix, they advise.
Then build the product.
Then… sort of, maintain the product and
make money? Shrug.
Here’s the truth: you’re never done talking
to your customers. You’re never done learning about the challenge you’re trying
to fix. Unfortunately, once things take off a little bit, finding the time to
engage 1o1 with your audience to gather more intel takes a bit of a hit.
I guess you see where I’m going with this.
Chatbots allow you to keep the velocity of those conversations (and learnings) up. Your brand can now engage with customers, log conversations, and keep learning at scale, forever.
Experts turn to chatbots, and so should you
I hope this article got you excited about
the potential chatbots can bring to your business.
They are more than a clever tool that increases conversions. They can truly impact all aspects of your organisation. By 2020, over 80{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} of businesses will have some sort of chatbot automation implemented. Are you ready to harness the power of conversational AI?
Originally published June 14, 2019 – Updated April 01, 2024
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Authors
Alex Debecker
Alex is the founder and CGO of ubisend, the UK’s leading chatbot, artificial intelligence, and conversational software company.