How Chatbots Help Businesses Save Time and Money

chatbots for business

With more and more people getting exposed to chatbots, businesses will naturally want to utilize more of these AI automations. In this article, you will learn how chatbots help businesses and their customers.

To begin with, chatbots are great for

  • consultants
  • insurance
  • real estate agents
  • service based business
  • virtual assistants
  • coaches
  • designers
  • any marketing arms of most businesses

Chatbots Provide a Quick Response to Users

Customers want immediate response to their queries. They don’t want to deal with challenges that are too difficult for them. They want to be able to handle the challenge on their own, and only then will they need assistance from a live chat agent.

At the very least, they will be happy to receive a message from a “smart” chatbot telling them the exact time they will receive solutions to their problems. Even better, if the problem is complex or there are many potential solutions, the message could include a video or audio recording of the chatbot giving a step-by-step explanation of the solution.

In most cases, when a customer refers to the FAQ page, the bot can quickly respond by referring them to that specific page so they can get the answer to their question.

Chatbots Create Customer Engagement

The future of brand engagement is chatbots. Customers who are engaged are more likely to move down your sales funnel and into your conversion funnel. 

For example, on your messenger app, a chatbot can initiate a conversation with your customers to promote an offer or tell them about your latest product.

When you create an engaging chatbot, your customers will feel a connection. Your chatbot will seem more human, less mechanical, and customers will be far more likely to buy from you.

Chatbots Can Help Save Customer Service Cost

Clients will always ask questions and ready to receive the information they need. But a good customer representative will not be available all the time.

If you want to make sales online, chatbots are indispensable. They are always available to take orders, provide answers to questions, give status updates, send follow-up communications and even remind you to follow up with customers.

Chatbots are an essential tool for any entrepreneur. They are there and very active at all times of the day, ready to engage with your customers. This means your customers won’t have to wait several business days before their questions can be answered.

Customer service agents are expensive and they can’t work 24 hours a day. Brands with a high or low budget can use a single chatbot to handle most of their customer service needs.

Using a single chatbot can help brands save customer service costs. It’s not a complete solution, but it can significantly reduce the number of customer service agents you need to employ.

Businesses Use Chatbots to Handle Repetitive Uncomplicated Tasks without Errors

Chatbots are extremely useful. Not only do they do repetitive uncomplicated tasks very efficiently, they also never get tired, make no mistakes, and never lose interest. In fact, they are always ready to help.

Businesses use chatbots to handle tedious routine tasks efficiently. This saves time and energy for their human employers to concentrate on more complex aspects of running the business.

Chatbots Reduce Human Error

When a person is involved in a repetitive task, there is a tendency for him to take short cuts which may result in an error. However, a chatbot cannot make such kind of mistake.

It is like a factory production line where nothing is left to chance. Every aspect of the process is highly controlled.

This is one of the main reasons why many businesses are turning to chatbots to handle their simple day-to-day operations.

Chatbots can also help businesses cut down on their overheads since they do not need expensive healthcare and insurance benefits.

How Chatbots Help Businesses – Brand Marketing

Many brands host webinars, online summits and other live events.

For example, Facebook usually creates a Messenger Bot for their annual conference to remind people to attend their scheduled seminars, webinars and Facebook Lives.

This is automated. Both time and effort are reduced due to technological automation.

The business owner no longer has to do the tedious work of sending out individual reminders nor reply to frequently asked questions.

Chatbot Agency – Traditional Businesses

How chatbots help businesses especially traditional business like restaurant and store owners is to:-

  • showcase your products
  • talk about your service
  • provide instant answer
  • having a virtual answering assistant (FAQ)

Having this competitive advantage will lead to your having more buying clients as customers tend to choose the vendor which requires the least amount of effort during the sales process.

While automated, chatbots can help give your company a face. For many potential customers, your chatbot will be the first touchpoint with your business. As the replies are instant, they provide better service then waiting for an email or phone call.

Benefits Of Using Chatbots For Business – Better Understand Your Customers

You can also understand more about your customers’ needs by creating a survey to collect information and ask them specific questions to help you better serve them.

Big data analytics can help you understand your patrons better.

In this way, you can increase profit by guiding your customers to the suitable product or service faster.

Facebook Messenger Bots For Business – Enhance User Experience

Since Bots are built inside Messenger, a communication tool, they are a great way to provide customer support.

You can use Bots to educate your visitors about your product or service.

They can also complement your website to provide people an additional way to access information about your business.

Messenger Bots can help you capture new leads and help you sell your product or service to warmer leads.

A single Messenger Bot can perform one or all of these tasks all within Messenger.

Myths About Chatbots

Now let’s go over some of the myths and benefits when it comes to messenger Bots.

Myth Number 1 – Nobody wants to use messaging to talk to businesses

Studies showed that 9 out of 10 consumers want to use messaging to talk to businesses.

In fact, people and businesses send over 8 billion messages each month on Facebook Messenger alone.

This means that by introducing Messenger Bots, you’ll allow users to contact you using their preferred method of communication.

how chatbots help businesses

Myth Number 2 – Messenger Bots are impersonal

64% of users would rather message a business rather than call. Around 74% of customers used chatbots in their interations with businesses in the past year.

While individual salespersons or telemarketers may struggle to remember the interests and requirements of each client they service, Messenger Bots built using best practices can learn more about each person and remember details.

More engaged conversations and better rapport with your clients results in greater brand loyalty.

Personalized recommendation and advice is not scalable unless you have a customer support team that works around the clock!

Messenger Bots act as an additional tool to your business that can act as a first level customer support to guide visitors to the product or service that can address their current problem.

This saves your business the cost of maintaining a full customer service team 24/7.

It is important to note that Messenger Bots are not meant to completely replace human support. They are meant to help you offload the more repetitive questions that customers have. This accords you have more time for more meaningful conversations.

This is why Messenger Bots are such a great tool to send reminders about webinars or other time-sensitive events. There is evidence that shows that if you use Messenger Bots for these reminders, you’ll see an increase in engagement and participation.

Second, when a user interacts with your Facebook Messenger Bot or taps on a send to Messenger button you will automatically have access to the user’s name and other basic information from their Facebook profile.

This means that users do not need to waste their time entering in their email or name in order to subscribe or to download the lead magnet.

When a user taps on a send to messenger button, your Messenger Bot can send them your free PDF or confirm their subscription instantly!

A user’s name isn’t the only information that you should know or collect.

Your Messenger chatbot can ask users about their interests or needs, in this way, you can send out more relevant content.

After all, nobody wants to receive junk that doesn’t concern them.

How Chatbots Help Businesses – Best Chatbot Usage

When using chatbots, brands should focus on a pull model where the chatbot is facilitating a conversation and client discovery. This helps you understand your customers. By doing so, you can serve their needs better.

Don’t use chatbots to push your marketing messages or agenda. Forcing your brand into your customers’ faces will have adverse effects on your business.

So if you’re planning to build or introduce a Messenger Bot into your business, be sure to use them to learn about your visitors and existing customers. Monitor your customer data as it will provide better insights on how to grow your business.

Become aware of who they are and what they want. You’ll need that information in order to provide relevant content and helpful recommendations.

You can do this by sending users a message to let them know about your latest blog article or ebook. Get them to sign up for an educational mini-course or video series.

You can tell subscribers about your upcoming challenge and send them a message each day to keep them motivated.

Alternatively, get them to register for your upcoming free webinar.

Balance Automation with Human Touch

Chatbots and live chat are the best ways to provide seamless customer service. By combining AI technology with a human touch, you can provide a much more personalized experience for your customers. Likewise, by using both live chat and chatbot software you will give them the power to self-serve and connect with a human agent when needed.

Using AI-enabled chatbots as your primary channel for customer service will give you a huge advantage over your competitors. You’ll be able to quickly respond to customer questions, answer those questions instantly, and boost customer satisfaction tremendously.

However, there might be instances when the chatbot can’t identify the user intent and so it needs to make a human handover.

Therefore, you should understand the difference between chatbots vs. live chats and integrate them together for improved customer service. It’s a very powerful combination.

Facebook AI Chatbot – Helping Move Clients along the Customer Journey

Bots can help with a registration process and send out reminders.

Since users check their messages more often than they do their email, there’s a higher chance that the user will see the reminder and attend.

You can also build a Messenger Bot to ask questions to prequalify and make sure that the user is a right fit before you schedule a live one-on-one conversation. In this way, you can use Chatbots on Facebook Messenger to increase conversions.

If built correctly using best practices, a chatbot can be an extremely helpful assistant for both you – the business owner and your visitors. It is available 24 hours a day, 7 days a week. They do not require rest and do not complain.

It can help you automate repetitive tasks and connect with visitors to build trust and a relationship at scale. This cuts down operational costs of hiring drastically.

It can also help your customers by providing them with the right information at the right time.

Your visitors can conveniently get in touch with you though chatbots.

If users are not interested in hearing from you or your Messenger Bot they can always unsubscribe.

Artificial intelligence no matter how advanced it may be is not yet at the level that can replace actual human beings. Many bots are poorly programmed because they have been rushed to market to take advantage of the surge in chatbot usage.

So it is imperative that you understand that the cheapest solution isn’t always the best.

Messenger Bots shouldn’t be used to send out spammy promotional messages. This is something that you should not do. Platforms like Facebook have strict rules and guidelines when it comes to interacting with people.

When it comes to chatbots and Messenger Bots, it is best to first attract users, engaging with them through education and sending valuable relevant content.

Then, identify the warmer leads before converting them to users.

Remember, the goal of a Messenger Bot is to build relationships. Do so by sending out useful informational content like news or your latest articles.

If you’re hoping to build a Messenger Bot to only send out messages about sales, promotions, discounts, coupons, all to push users to make a purchase, then Messenger Bots are not a great fit for you. Facebook does not allow this.

If you decide to go down this route you might end up getting your Facebook Page and Messenger Bot banned by Facebook.

How Much Does A Chatbot Cost?

Chatbots are going to be a big part of any modern society. They allow automated payments and immediate help for client’s with problems. The instant process improves customer satisfaction and makes customers happy.

Naturally, depending on the complexity of tasks required, chatbots can vary in costs.

Below a break down of what you can expect to pay for:

Chatbot Software Platform – $50-$500/month. This is the typical amounts you have to pay for the software for your website.

Chatbot Development and Setup – $800-$2900. This requires technical knowhow and skilled execution by your service provides. It is usually a one time fee. It typically takes 4-6 weeks to set up and test your chatbot in different scenarios.

Chatbot maintenance and support – $400-$3500/month. This is an ongoing fee where an agency or a staff member ensures that your chatbot is optimised and working as best it can.

How to Calculate Chatbot ROI

At the end of the day, chatbots are an investment of time, money and manpower. Not only do you have to invest in the development of the chatbot, but you also have to invest in making sure it runs smoothly at all times.

There is no direct way of calculating ROI on chatbots. However, using these simple calculations you can get an idea of how much ROI you may be getting.

Query resolution time

Chatbots are superior to human agents because they can handle multiple simultaneous inquiries and are available 24/7. That gives them an incredible advantage over human agents who can only handle a single user at a time.

You will be able to calculate your agent efficiency improvement once you know how much time was saved by using the chatbot. This can be measured in many ways but one of the most common ways is by looking at the number of tickets that were resolved with no human intervention whatsoever.

Time saved = (Average time taken by a human agent to resolve a query) * (Total number of queries per month)

This time saved can be converted to a dollar value by multiplying the amount you pay your staff on an hourly basis.

Let us assume that the time saved per month is 200 man hours per month and that your staff are paid $10 per hour. 

Company savings = 500 hours x $10/ hour = $5000

If your monthly cost for maintaining a chatbot system is $450,

Your monthly Chatbot ROI = [($5000 – $450)/ $450] x 100%  = 1011%

Enhanced internal and external satisfaction

Not all ROI is linked to monetary or time savings; some of it can also be measured in both workforce and user satisfaction.

Chatbots ease the workload of live agents, provide better information to various teams like marketing or sales, and help create a better lead-generation process. Also, due to the quick response times and ability to save all user information, chatbots provide fast and relevant information to each user and drive personalized conversations.

These factors result in higher satisfaction both for the customer and employees. Satisfied employees are willing to give a higher output and satisfied users can turn into loyal customers.

It is important to remember that ROI for every business will differ, as it depends on many factors, including:

  • Company size
  • Number of live agents
  • Compensation per agent
  • Average chats per agent
  • Average length of each chat
  • Predicted chat/query growth 

Conclusion

Implementing chatbots is a smart choice for organizations that want to increase their market share, customer base and boost engagement. The conversational nature of AI chatbots can help businesses build a human touch in their conversations with their users. Thus, enhancing their business value significantly.

Chatbots make it easier for you to reach out to clients where they are on different channels. They provide a great platform to engage with customers and market your products. This, in turn, can help to boost your sales revenue.

If you decide to be an early adopter of chatbot marketing, you will be on the forefront of marketing techniques.

It is well worth considering adding chatbots and Facebook Messenger BOTS to your marketing toolkit to give you an edge over your competition. By combining Messenger bots with other outreach channels, you can lower your advertising cost on Facebook.

Contact Blazing Conversions to discover how you too can use messenger chatbots to benefit your business.

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