Customer retention is an important part of business growth, but it can often be hard to achieve by traditional means like in-person customer service or phone calls. Fortunately, chatbots can help you strengthen customer relationships without much effort on your part, enabling you to focus on other aspects of your business that need attention.
Here are five reasons why your business needs a customer retention chatbot to be truly successful and competitive in the marketplace.
Introducing Customer Retention Bots and ideas on a winning customer retention strategy using bots.
Keeping customers engaged means offering them the tools to use when and how they want, as well as ensuring their needs are being met. There is nothing worse than a customer calling your company only to be put on hold for 30 minutes or more.
Customers need instant service, which is where customer retention chatbots come in handy. In order to win over a customer, it’s important to get them what they need as quickly as possible. That way, you’re not just winning one sale; you’re also retaining that customer for future purchases too.
Customer retention bots can also help answer questions that might not be specific enough for an FAQ page and provide faster resolutions to common problems that might arise with the product or service you offer. These bots have been proven to increase customer satisfaction and reduce time spent handling calls.
For example, imagine a business with 50 callers waiting in queue–a new-customer phone line bot could eliminate 10 of those calls every day by dealing with less urgent queries and directing them to email or social media instead.
A survey from Drift revealed that 66% of people prefer using a chat interface to resolve their issues because there’s no wait time, better communication, and instant feedback. Not only does this decrease wait times for other customers but it also creates happy customers who don’t need to speak with someone on the phone about something simple like ordering products online. Here are five reasons why your business should consider deploying a customer retention chatbot.
Enhanced customer reach
If you need help increasing the customer reach of your business, then you should seriously consider looking into chatbots. Not only can chatbots be used to engage with existing customers and encourage customer loyalty, but they also provide an avenue for reaching potential customers who are not even aware of your company’s existence yet.
For example, one way that businesses can use chatbots is by offering free estimates on products or services through messaging apps. The fact that this technology is so versatile means that it will undoubtedly have a significant impact on all types of businesses in the near future.
Of course, there are many other ways that chatbots can improve customer retention for any business. They can remind people about upcoming deadlines and appointments; offer suggestions for similar products; monitor what customers search for online; analyze how much time someone spends on a website; and much more.
By using chatbots, companies will be able to find out what people want from them without having to pester them with intrusive surveys or annoying pop-ups. To put it simply, chatbots work as a middleman between the customer and the company.
As such, these tools represent both new marketing opportunities as well as a new way to interact with current customers. With these advantages in mind, there is no reason why any business would refuse this opportunity!
Perfectly timed customer engagement
The first time that your customer will reach out to your company is when they have an issue with their product. What does this mean for you? It means that the sooner you resolve their problem, the less likely they are to turn into a bad word-of-mouth referral source. And let’s be honest, the only good word of mouth is good word of mouth!
A chatbot can help make sure that every interaction begins and ends on a positive note by following up and resolving any issues on the spot. But what if we’re not available at all times? Our service operates 24/7 so it doesn’t matter what time of day or night someone contacts us – we’ll always answer them as soon as possible.
No more waiting around on hold: Waiting on hold for hours before speaking to a live person is not uncommon. With a customer retention chatbot, customers won’t have to wait at all. Plus, if they do want to speak to someone right away, there is no need to spend money on call centers which can run businesses thousands of dollars per month.
Customers feel heard. They get in touch because they need something from you (e.g., shipment information). They don’t like feeling ignored and brushed off by a machine. But if your chatbot handles everything smoothly, then customers will walk away satisfied knowing that they were able to get their needs met quickly and efficiently.
Customers get immediate satisfaction: They don’t have to wait on hold for hours just to speak with a human being about the latest deal.
Differentiated customer experience
Engaging customers as soon as they show signs of churning will go a long way in ensuring that they never leave your business. A great way to do this is by deploying an intelligent customer retention chatbot to monitor and respond to customer conversations in real-time. You can learn more about how they work by reading on!
1) Monitor conversations
2) Predict when it’s time for the next interaction
3) Be proactive when necessary
4) Personalize interactions
5) Enable automated customer service (on chat, SMS, email)
Defer decisions until you have enough information: Chatbots are designed to help you make informed decisions without having to wade through irrelevant information. They also are programmed with pre-programmed responses so that they can answer customer queries quickly and efficiently.
For example, if someone asks what’s the weather like today? The chatbot might say its cloudy today. If someone says how does one change their password? The chatbot might reply with a link to their password reset page or tell them how much it costs to change their password now.
There’s no reason to spend time figuring out what response to give when a chatbot can do it automatically! Plus, having a personalized experience not only builds trust but also increases the likelihood of future purchases from your company.
Just think about how many customers you’ll save from becoming disgruntled because they couldn’t find the answer to their question!
Lower service delivery costs
Bots are more affordable for businesses that don’t want to invest in an expensive human-powered customer service team.
They allow customers to deal with the brands when they’re available at the time they need it most, without having to wait or hunt around.
With chatbots and less dependency on actual human customer service reps, your customers won’t have to spend their hard-earned money sitting on hold waiting for someone to answer their call or answering all of their repetitive questions.
Don’t worry about needing to hire a new team: Replacing humans with bots is not only good for business, but it’s also good for the environment. Talk about lowering your carbon footprint! You can save power and water consumption by using fewer resources with bot technology.
Plus, you’ll be able to offer 24/7 customer service without the high labor costs associated with traditional employees. And finally, how cool is it that you can get rid of annoying telemarketers while making your consumers happy? That’s right – if you use a bot as part of your customer retention strategy, then your phone will never ring again from pesky sales calls.
No longer will you need to tolerate annoying robocalls or recorded messages from companies who don’t know any better. No more talkative telemarketers asking the same old questions to which they already know the answers. With a bot, you get efficient customer service 24 hours a day, 7 days a week – even holidays!
Boost ability to re-capture lost customers
By now, you’ve probably learned about chatbots and the benefits they can bring to your company. You may also be wondering what sort of situation would prompt you to hire one in the first place. This is an important question because chatbots require significant time and resources to install, train, and maintain. If it’s not necessary for your business or there are other strategies that work better for you, then this type of investment may not make sense.
One instance where a chatbot could be beneficial is if customer retention has been a challenge for your company. A CRM chatbot could help recapture lost customers by providing the customer with personalized offers via text message or email, which will hopefully lead them back to purchase from you again! An example of how this might work:
There’s no doubt that customer loyalty programs have helped many companies grow their bottom line and customer base. They are often cheaper than acquiring new customers and they provide more repeat business than any other form of marketing.
That said, there’s always room for improvement when it comes to loyalty programs as well as CRM strategies as a whole. For example, on average between 30-40% of customers will drop off after making just one purchase from a company, so there’s clearly room for improvement in terms of the way that businesses interact with these buyers.
That’s why businesses should consider adopting customer retention strategies like CRM chatbots to reach out to these valuable but easily forgotten buyers before they leave completely.
Increase recurring revenue
With today’s hectic lifestyle, it’s easy to forget that what made you loyal in the first place are your friends and family. Sure, they’ve grown up or moved away but they still want to hear from you and hear about what you’re doing in your life.
So make it easier for them by setting up chatbots for each major time of day: morning, midday, evening and night. These bots can have pre-written messages like good morning! Did you eat lunch? Are you getting ready for bed?
Since many consumers spend hours chatting with customer service agents every year, chatbots offer an affordable way to provide more support without having more people on staff. They can also use artificial intelligence to deliver personalized responses based on what the user says so there’s no need to have an army of customer service agents answering phones and chatting online all day long.
Reduce customer outreach costs
Cost savings is the major advantage of implementing customer retention chatbots. By reducing your outbound call volume by 80% on average, you save around $500K per year. This savings could make your chatbot’s investment worth it within six months!
Reduce lead generation costs: Eliminating the need to pay for outbound calls and e-mails has another advantage: cost savings. You can expect to spend less than 10% of what you would on traditional lead generation efforts.
Optimize lead conversion rates: When customers are able to engage with your company through a personalized and human-like experience, they will feel more invested in their relationship with your company. And when they do have a problem or question, they’ll be happy to find that customer service agents are available 24/7!
Plus, retaining just five more customers each month with this type of chatbot translates into an extra $15,000 in profits each year. Implementing a customer retention chatbot should result in tangible ROI after just one quarter.
Prevent high turnover rates: Employees who work with these bots also report feeling happier because they’re helping people all day long without ever having to deal with difficult customers. You don’t have to worry about burnout either because employees can only see messages from users who’ve opted in and are expecting them, so there’s no risk of overexposure.
Collect feedback easily: These intelligent systems allow businesses to collect data from interactions at scale and analyze trends across channels, devices, browsers, operating systems and languages. All of this helps you improve marketing campaigns with minimal effort!
Improve customer satisfaction
A chatbot is an emerging form of customer service and helps retain customers. A good chatbot responds to a customer’s request for information, fulfills their needs, and/or closes the sale. This improves customer satisfaction and makes it more likely they will come back again in the future.
When you have a customer service chatbot, you can reduce costs associated with call centers and cut staff hours by 75%. If your customers are happy, they are more likely to share positive reviews on social media or even buy other products from your business.
A Quick Wrap
Businesses across the world are employing customer retention chatbots to help their customers get the help they need. Some of the benefits of these chatbots include: saving time and money, providing customer insight, decreasing customer churn, creating customer satisfaction and improving customer relations. We’ve also seen that some businesses have used them for sales campaigns as well! What are your thoughts on customer retention chatbots?