Chatbots: How They Help Increase Sales And Revenue For Businesses

Summary

Chatbots are a cost-effective tool for businesses to increase sales and revenue by leveraging conversational AI on messaging platforms and streamlining the purchasing process.

Abstract

The article emphasizes the significant role chatbots play in boosting business sales and revenue by providing access to a vast customer base through popular messaging platforms like Facebook Messenger. With over 1.3 billion users, chatbots can potentially save businesses substantial marketing costs associated with user acquisition. The efficiency of chatbots in facilitating orders, such as through the example of OrderBot, leads to increased sales by reducing the steps and time involved in the purchasing process. The article also predicts that by 2020, 85% of customer interactions will be managed by chatbots, highlighting the transition towards automated customer service solutions.

Opinions

Chatbots offer a direct and efficient pathway for customer interaction and transactions, bypassing the need for costly app installations.
The use of chatbots can result in a dramatic increase in sales by simplifying the order process, as evidenced by a 23% increase in order quantity and a 30% increase in sales for OrderBot clients.
The article suggests that chatbots are not only a trend but a necessary evolution in customer service, with the potential to handle the majority of customer interactions by 2020.
By facilitating seamless payments, chatbots are seen as a bridge between traditional brick-and-mortar businesses and e-commerce.
The article positions chatbots as a cost-effective alternative to human agents in customer service, potentially reducing costs by 30%.

Reach Millions Of Potential Customers Through Messenger Platforms

In order to grow your business, you need to interact with as many potential customers as possible.

This is where chatbots come into play, they create an effortless path for customers to transact with your business through conversational AI via messaging platforms like Facebook Messenger, which recently passed 1.3 Billion users as you can see from the chart via Techcrunch.

That is 1.3 billion potential customers with direct access to your Chatbot already installed on their devices.

For reference, the average cost per install (CPI) globally for iOS Apps in USD $0.86. Leveraging a Chatbot saves you roughly (1.3 billion x .86 = $1,118,000,000) in marketing budget dedicated towards user acquisition.

In short, Chatbots leverage messaging platforms with built-in audiences allowing your business to transact with hundreds of millions of potential customers without the need to waste valuable resources on downloads.

Increase Sales Through Improved Order Efficiency

Chatbots can dramatically improve sales for any business. This is accomplished in two ways.

Reduce the number of steps it takes to purchase a product

Reduce the amount of time it takes to receive the product

For example, A coffee shop struggles to serve a large volume of customers during the morning rush. Long lines slow down order efficiency and deter potential customers who are time sensitive.

However, with a bot such as OrderBot in place, customers can complete their order prior to arrival in three simple steps, illustrated below.

Order

Pay

Collect

Customers are now able to purchase and prepay for any product in three simple steps. Reducing the time in queue significantly for QSR businesses. A simplified order process has led to an average increase in order quantity by 23% along with a 30% increase in sales across OrderBot clients.

Wrap Up

By 2020, 85% of all customer interactions will be handled without a human agent. Chatbots are integral to the shift from human to automated customer services for every business. Bots will bridge brick and mortar businesses with e-commerce through their ability to facilitate seamless payments to the largest number of potential customers.

Originally published at mindat.io on September 10, 2018.