What Is A Chatbot And Does your Local Business need one?
QUICK OVERVIEW:
Part 2: Which industries can benefit from a Chatbot?
Part 3: Facts & Statistics – 15 reasons why you should invest in a Chatbot for your business now
Part 1: What Is A Chat Or Messenger Bot?
Let’s quickly break this down.
Messenger = something that facilitates communication; in this case, a messenger is a software used for chatting online.
Chat = to talk or communicate (mostly informally used)
Bot = short for Robot and used to describe a piece of software that runs automated tasks on a computer or the internet.
Without getting technical, a chatbot is a software that mimics a conversation with a human, based on certain conditions, triggers, and events.
A messenger chatbot acts like an automated customer service rep that works 24/7 and can be used for your Facebook messenger or to offer a live chat feature on your website without an actual human having to be present all the time.
It could appear on the bottom right of your website as seen here:
A chatbot can be “trained” to service the customer with tasks as essential as providing opening hours or as advanced as processing orders or booking appointments so that you can deliver faster customer service without hiring full-time staff.
Of course, you can also use it for Lead Generation and to acquire new customers. For example, as part of a Facebook Advertising campaign.
In that case, the messenger bot would be the destination of the ad (rather than your website), and it can help you to qualify leads, book appointments for new customers, and even take their payment.
As certified Messenger Experts, we use messenger bots regularly in our Lead generation campaigns for local businesses, and it’s one of our favorite strategies to ensure Leads get taken care of instantly.
Part 2: Which Industries Can Benefit From A Chatbot?
Do you run a small business and have a website or Facebook page?
Then it is very likely that adding a chatbot will help better to serve your visitors, leads, and customers.
Here are some examples of industries that could use a chatbot and a few benefits for potential customers:
Restaurants
- Reserve a table
- Check the menu
- Check for opening hours
Real estate agent
- Check available houses
- Send requirements so they can receive instant updates for upcoming houses
- Schedule a call
Cinemas
- Reserve seats
- Check frequently asked questions
- Cancel or change their reservation
Delivery Services
- Order products
- Receive delivery status
- Find out the radius of the delivery area
Hotels
- Check availability
- Book a room
- Check out hotel amneties
Junk removal
- Schedule a call
- Ask for a quote
- Check out services
Travel agency
- Request information about a trip
- Check for last minute deals
- Enter contests or giveaways
Interior design
- Get a quote
- Checkout different services
- Get Color recommendations
Pilates studios
- Get training tips
- See class schedule
- Win a free workout
Gyms
- Schedule intro workout
- Get workout tips
- Reserve training session
Mortgage broker
- Request a quote
- Get mortgage recommendation based on credit
- Schedule a call
Attorney
- Schedule a free intro consultation
- Request tips for a specific subject
- Download templates
Roofing companies
- Fill out a survey to request a quote
- Check different services
- Schedule a free visit
Car Dealerships
- Get Car recommendations
- Request a quote or see existing inventory
- Schedule a test drive
Is your business not listed here? Don’t worry, these are just some examples, and a Chatbot might still be a valuable addition to your website or Facebook page.
Send us an email or schedule a call to find out how a Chatbot can help set your business apart from the competition.
Curious to find out how a chatbot can help your business? We’d love to set one up for you.
Part 3: Facts & Statistics – 15 reasons why you should invest in a chatbot for your business now
Do consumers really want to use this, or is it just a brief trend that will pass?
We compiled the below statistics to help you see the bigger picture and decide for yourself if chatbots are right for your local business.
And if yes – in what way?
Under every statistic, we provide a brief explanation of how that statistic could apply to you.
1. 80% of businesses are expected to have some sort of chatbot automation by 2020 (Outgrow, 2018)
Key Takeaway:
- when comparing different businesses online, those who offer instant chatbot support would have a competitive advantage over the others
- those who started the earliest will already have the most experience and the most optimized chatbot when other businesses start catching up
2. 53% of customers are more likely to shop with businesses that they can message (Outgrow, 2018)
Key Takeaway:
- Increase the chance to be chosen as a preferred service provider compared to business websites without chatbot or live chat.
3. Over 50% of customers expect a business to be open 24/7 (Oracle, 2016).
Key Takeaway:
- While it’s not possible to be “almost open,” a chatbot can give the customer the feeling that you are doing your best to service them 24/7.
4. Chatbots can save up to 30% in customer support costs (invesp, 2017).
Key Takeaway:
- Pretty straight forward: Saving money (and time) that you can spend on marketing, payroll, or product development.
5. 37% expect to get quick answers to questions in an emergency. (Outgrow)
Key Takeaway:
- Show customers that they can count on you and thereby increase lifetime value. While a chatbot isn’t going to take care of a real emergency, you can still tell them what immediate steps to take and make it easy for them to find your location by providing driving directions and your emergency phone number. This could apply to a Veterinarian or Dentist.
6. 35% expect to get detailed answers or explanations. (Outgrow)
Key Takeaway:
- Set up your chatbot with appropriate responses that mimic what you would tell customers over the phone to avoid frustration. Use pictures and natural language. Don’t sound like a robot.
7. 34% use a chatbot as a means for getting connected with a human. (Outgrow)
Key Takeaway:
- People like getting an instant response when they have a question. If there is a chatbot available, they know that there is a higher chance to also receive live chat with a human. Make it evident that they can reach a human and will be taken care of.
8. 33% wish to use chatbots to make reservations, order online, etc. (Outgrow)
Key Takeaway:
- Don’t miss the chance to gain a competitive advantage by giving customers the option to conveniently order online instead of calling you, visiting you, or waiting for an email response after filling out a form.
9. 95% of consumers believe ‘customer service’ is going to be the major beneficiary of chatbots. (Outgrow)
Key Takeaway:
- Some say this is the decade of relationships, so doubling down on improving customer service is the way to go for any business.
10. 53% of people are more likely to shop with businesses that they can message. (campaignlive.com)
Key Takeaway:
- Sell more by instantly answering questions and handling the most common concerns about your product or service.
11. 64% of internet users say 24-hour service is the best feature of chatbots. (smallbiz.net)
Key Takeaway:
- Being available while your competitors aren’t is an excellent opportunity to close more leads and improve customer happiness.
12. Chatbots can answer 80% of standard questions. (IBM)
AND
13. 55% of people who use chatbots would expect them to provide instant responses and answers to simple questions. (Drift)
Key Takeaway:
- If you worked in any kind of customer support job before, you probably noticed that most customers tend to ask the same questions. If you could automate those standard questions, how much time and money could you win back?
14. Interest in chatbots increased by 160% in 2018. (Gartner)
Key Takeaway:
- It’s Coming – Don’t Ignore It
15. 46% of users would prefer to communicate with a live person instead of chatbot. (Tidio)
Key Takeaway:
- Make sure you always provide the option to talk with a human with the click of a button. A messenger bot can be set up to notify a live agent automatically when this button is pressed.
Part 4: Conclusion
The main reason that a chatbot is essential for any company conducting business or communicating with their potential customers online is to provide instant support and get questions answered 24/7.
Since this is what consumers love, it provides additional benefits to you:
- Reduced Customer Support Cost
- Reduced Customer Frustration
While it may appear to only apply to customer service, it also has a significant impact on how many online leads will convert into a customer.
In an age of instant gratification and impatience, driven by streaming services and same-day deliveries, consumers expect immediate assistance as the norm rather than the exception.
If you take a moment to consider just how prominent this has become, you might remember the vast amount of delivery services that have become mainstream, ranging from Google providing instant answers and Instacart bringing groceries to your home within a couple of hours.
Nobody wants to fill out a contact form, just to wait for hours or even days. A well-planned chatbot provides instant help for common questions and concerns and makes the user feel taken care of. If the chatbot can’t help the user, a customer service representative or salesman can jump right into the conversation and take over.
PART 5: SUMMARY
Chatbots are an affordable solution to:
- instantly connect with consumers at any stage 24/7
- qualify leads and increase conversion
- reduce customer service cost and frees up business owners time
We hope this chatbot summary was helpful. Let us know what you think about messenger marketing and chatbots. Do you have one yet? What could you automate if you did?
