According to a 2016 study by Botanalytics, around 40% of users don’t continue after the first message, while 25% drop off after the second. In the end, the retention rate of chatbots is around 7%. Currently, this situation seems to have changed little in most implementations worldwide.

In other words, there is still much room to increase retention in chatbots for companies, as long as they are implemented with well-defined strategies.

According to a study by Juniper Research, global retailer spending on AI will reach US$ 7.3 billion per year by 2022, compared to US$ 2 billion in 2018.

Companies, from small businesses to large corporations, know that investing in chatbots for customer service is a good idea. However, for many, there’s a lack of planning before, during, and especially after deployment.

In this article, you will discover what chatbots are, their importance, and how to increase customer retention with these service robots. Enjoy the read!

 

The simplified concept of chatbots

 

A chatbot is a conversational robot capable of interacting and conversing with humans through text messages, in an automated manner.

These robots can be integrated into websites, communication platforms such as WhatsApp, Facebook Messenger, Telegram, and various chat systems.

 

The role of chatbots in customer service

 

Chatbots usually solve simpler issues, forwarding only the cases that require human intervention to the attendants.

Thus, chatbots free up the time of customer service teams so they can focus on more strategic activities that add value to the business.

This helps companies reduce personnel costs, increasing employee productivity as well as customer satisfaction, as customers can have their questions answered and problems resolved more quickly.

Additionally, chatbots can take a proactive stance, instead of just responding when users initiate contact.

These service robots can be programmed for sales and customer retention actions. Below, we will explain how.

 

The importance of customer retention

 

You’ve probably heard that acquiring a new customer is much more expensive than retaining an existing one. But maybe you’ve never had access to a survey that proves this.

Now you do. According to a study by Frost & Sullivan with NICE Latin America, acquiring a customer can be up to 25 times more expensive than retaining one that’s already in your base.

Furthermore, instead of investing all your money in acquiring new customers, companies can focus on retaining their existing base, and these customers will recommend others.

Once they’re loyal, these customers will become advocates and even promoters of your brand, without charging anything for it, which isn’t too bad, right?

 

7 steps to increase retention with chatbots

 

Now that you’ve refreshed your memory on the concept and role of chatbots, as well as the importance of customer retention, let’s go through the tips to “hook” consumers with these service robots.

 

1. Understand your customers

 

Before you start developing your chatbot, it’s essential to know and understand your customers regarding their wants and needs, as well as their preferred platforms.

Do they shop more on e-commerce or in-app? Do they prefer service via WhatsApp or phone? Do they engage more on Facebook or Instagram? Answering these questions is the first step to increasing your retention.

 

2. Pay attention to onboarding

 

Customer onboarding, which is the process of introducing and adapting the user to your chatbot service, should be unforgettable. Modern consumers seek experiences, and yours should be the best possible.

Here, the less effort the customer has to make to talk or buy from you, the better. Simplify your purchase journey, provide agile and efficient service, and you will make the experience more pleasant.

 

3. Boost conversion

 

Chatbots allow you to increase your database to understand your customers’ needs, behaviors, and preferences, and with this information, you can boost your conversion.

From the first contact, on your business website, for example, chatbots can already collect information to optimize your marketing campaigns and sales strategies with more assertive and personalized actions.

 

4. Shorten the sales cycle

 

Chatbots can be a great tool for lead generation and qualification. They can filter a lot of information and thus reduce the sales cycle, delivering a well-educated customer to the human attendants.

This way, the customer gets what they need more quickly, and the customer service team becomes more productive, closing more deals in less time.

 

5. Invest in cross-selling and up-selling

 

Intelligent chatbots can make personalized and highly assertive recommendations to customers, increasing the average ticket and offering a more diverse product mix. The end result of this is an increase in the company’s revenue and profitability.

 

6. Make your customer come back, always

 

Give your customer reasons to come back, using your chatbot to send special offers, promotions, and discounts, as well as using it to send notifications, updates, and tips about your products and services. Make your chatbot proactive, creating, in fact, a relationship with the customer.

 

7. Always optimize your strategies

 

Finally, it’s essential to revisit your strategies, including the knowledge base, vocabulary, and tone of voice of your chatbot, as well as each step of the process. Collect and analyze data to identify gaps and areas for improvement. This way, you will be able to evolve your chatbot, constantly.

That’s it! With this step-by-step, we’re sure you’ll be able to increase customer retention through your chatbot, along with your human attendants’ performance.

 

Thank you for reading. See you next time!

Also read: Customer Centric: What it is, advantages, and how to apply it to your business