Conversational Marketing 101: All You Need to Know
Solomon Mugo
Digital Marketing Content Writer | Creator of B2B & B2C content that converts | I will help grow your audience and get more leads
I hate being put on hold for hours by customer support staff.
Or hearing “Please leave a message after the beep” while trying to contact a brand.
And you know what's worse?
Scrolling a brand's homepage without getting the needed information or being redirected to broken URLs.
In fact, according to a Tidio study, 53% of shoppers claim that waiting too long for a reply is the most frustrating part of dealing with brands and 71% of online shoppers expect brands to communicate with them in real-time.
And there's more.
.
Unfortunately, most businesses still rely on outdated, one-way communication strategies that frustrate customers and affect their bottom lines. The solution? Conversational marketing — a strategy that drives real-time engagement and streamlines how brands connect with their audience.?
In this guide, I’ll show how conversational marketing can help your brand deliver instant, personalized interactions that meet customer expectations.
If you're a business, this article is for you!
What is Conversational Marketing?
Conversational marketing refers to personalized, and real-time interactions between businesses and their clients.
Think of live chats, instant messaging on social media, chatbots, and other interactive customer-client platforms.
You've probably experienced conversational marketing on a personal level already as this form of marketing is currently very popular.
For example, last month, I decided to change my VPN provider and NordVPN sounded like a solid option, so I visited the company’s online page
A small chat icon was located on the right-hand corner of the company's homepage. Clicking the icon opened a dialogue box, which connected me to a live chat agent who addressed all my concerns in a few seconds.
The fast, personalized, and friendly service sealed the deal and I signed up for the service.
That's all conversational marketing is about - providing a platform where clients get fast, friendly, and personalized attention from businesses.
How Does Conversational Marketing Work?
Conversational marketing is a straightforward marketing technique that strives to make communication between businesses and their clients as seamless and simple as possible.
The days of the traveling salesman, pigeon carriers, and cold calling are long gone and now brands meet with their clients on social media and other online spaces
Noting that global retail spending via conversational commerce channels is expected to grow from $11.4 billion in 2023 to $43 billion by 2028, conversational marketing is a strategy every business should embrace.
Here are a few of the more popular conversational marketing channels for brands in 2024.
Chatbots
If you regularly interact with businesses online, there's a high likelihood that you've used AI-powered chat assistants called chatbots.
You know, the little pop-up widget at the corner of a business's homepage where you engage brands on their prices, deliveries, and other mundane stuff that always bother you when buying things online.
So what is a chatbot and why is it important for conversational marketing?
A chatbot is an AI program that uses LLMs to simulate and process human conversations, allowing people to engage with digital services online.
Chatbots can be virtual assistants, social media bots, or customer service bots and help users navigate a business's online resources quickly and clearly.
Chatbots are so important that, according to an Ipsos poll, 49% of Americans used them for customer support in 2023.
Given that chatbots solve user queries in?10 chats or less on average, these tools are great for improving customer experience while cutting down on operation costs.
Chatbots are great for business due to their:
Live Chat
If it's about personalization, live chat takes the crown as it gives customers the human touch critical for building trust and brand loyalty.
Live chat software allows businesses to engage with their clients in real time through highly trained human agents who answer user questions and concerns.
Imagine you're shopping for headphones from an electronic e-commerce store but aren't sure of the product specifications. Instead of scouring the site for this information, the store offers a dedicated live chat department of knowledgeable agents who answer all your questions quickly and professionally..
Live chat excels in:
Instant Messaging
Instant messaging platforms like WhatsApp, Facebook Messenger, X (formerly Twitter), and Telegram are also great for conversational marketing.
Brands can use these channels to improve customer experience by sending personalized and relevant messages at the right time.
An example is how Airbnb allows clients to contact an Airbnb host directly for directions, pricing, and other reasons.
Uber also offers dedicated instant messaging service between rides and their fares, which improves customer satisfaction and reduces fraud.
Instant messaging is great for brands because:
The Key Elements of Conversational Marketing
Here are a few principles to remember that will improve the success of your conversational marketing strategy.
1. Conversational marketing works on customer time
Let's be honest.
We are all guilty of late-night shopping, especially for takeout meals that if you're like me and the over
Now imagine contacting your favorite eatery in the wee hours to place an order and finding no one home yet the brand prides itself on 24-hour service.
No chatbot, social media messaging, or live customer agent!
I bet this will piss you off and cause you to reconsider your loyalty to the brand.
It doesn't matter how quick or efficient your customer care team is if they won't be available for the customer when they need them.
Whether on their lunch break, a night out, or halftime during the Cubs game, your customers demand prompt, high-quality information about your brand.
If a client is short on time and needs to purchase a product ASAP and cannot reach customer care at that very moment, they would probably think of another product as the options are limitless.
Immediacy is so important that 90% of interviewees in a Hubspot study, rank an “immediate response” as very important when dealing with brands.
2. Keep it scalable
Customers are almost the same, and so are their questions and concerns.
It doesn't matter how big your customer base or your customer care team is; I expect to get my concerns addressed quickly.
What does this mean for businesses?
You need to scale your customer-facing departments and make them available 24/7. If you don't have enough manpower consider getting AI chatbots or other automated systems.
That said it's important to balance machines and humans since nothing can ever replace the human touch. And truth be told machines can just go as far especially when dealing with complex customer concerns.
For example, a restaurant can use bots for order tracking, and reservation management freeing the staff for more in-person interactions.
3. Context
No human conversation exists in a vacuum.
When talking to your friends you expect them to pay attention which also applies to businesses.
When I contact a brand multiple times within a reasonable time frame, say 24 hours, I expect that our conversation is on file eliminating the need to repeat myself.
I recently had an issue with my bank account due to double billing for a purchase I had made before. As is the norm, the bank representative asked for my name, bank account number, and other details.
As I was tossed between different departments, I had to repeat my name and account number multiple times, which was extremely frustrating.
While I did get the issue sorted this experience left a bad taste in my mouth.
In short, brands should invest in;
4. Meet clients where they live
Conversational marketing is about offering clients helpful information in real-time, which means meeting them in their favorite online hangouts.
For example, if your target client is on Facebook you should contact them on the platform.
That’s exactly what Domino’s has done with its anyware campaign, where customers can order pizza on the go using Alexa, Apple Carplay, Apple Watch, or text using a simple pizza slice emoji.
I wouldn't want to call a toll-free number to get a product's info if I could as well shoot the sales team an Instagram message.
Brands should learn clients' preferred communication channels and deploy staff or bots to deal with customers on these platforms.
The Benefits of Conversational Marketing for Brands
Conversational marketing isn't just about offering value to clients; this marketing strategy also offers real value to businesses.
Let's look at the importance of conversational marketing for brands.
1. Improve Customer Experience
Asking questions, seeking clarifications, or placing orders with businesses can be stressful, especially through email or phone.
Besides long hold times, getting ghosted, or waiting for ages to get a response, you may not be ready to deal with customer care's BS.
Conversational marketing, with its range of friendly, customer-centric approaches, makes communicating with brands easier and more fun.
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For most people, social media channels like Whatsapp, Facebook Messenger, Instagram, or live chat are their go-to for contacting brands thanks to their simplicity and engagement.
On these, you can shop, make payments, and follow up with the business without leaving the platform,?
This is why many companies have optimized their customer communication platforms for mobile, making these channels conducive for their clients.
A business chatbot will ideally recommend products or services that meet a customer's unique needs. At the same time, a live agent will give real-time answers to clients' queries, such as the payment methods.
For instance, Sephora, the beauty giant, uses a chatbot, a virtual artist app, and a beauty community for curated recommendations, answers to common queries, access to product reviews, and book consultations or makeovers
2. Enhance User Engagement and Satisfaction
Engaging your client is critical for increasing and building brand loyalty.
Imagine walking into a store and meeting a salesperson who answers all your questions and efficiently helps you find all the products you need to purchase.
That's exactly what conversational marketing does, thanks to responsive tools like chatbots and live chats.
Take the example of Hubspot.
When you visit their site, you're met with HubBot, the firm's automated AI chatbot, which quickly directs you to its core offerings.
You can quickly access the free training, enjoy a free trial, chat with the sales team, or continue with the chatbot.
Including these offerings in the chatbot saves customers time and incentivizes them to try unexpected things, like the free trial.
When clients quickly access your brand's products and services, it enhances user engagement and satisfaction, turning one-time visitors into returning customers.
3. Grow Lead Generation
Customers thrive in environments that understand and appreciate their needs and concerns.
Using conversational marketing allows your business to curate a unique shopping experience personalized for a specific client, improving the chances of conversion.
Let's say a client is shopping for safari hats and wants to know about the shipping costs for the product.?
Your AI chatbot preferably on the medium they use, in this case, Facebook, will engage the client, answer their question, and quickly guide them to a live sales representative who may convince the customer to make the purchase.
From an exploratory search, your AI chatbot or live agent will convert a potential lead into a buying customer, improving your lead generation efforts.
Another excellent example of how conversational marketing improves lead generation is Hiver’s AI chatbot Coco, which collects user email addresses.
As you interact with Coco, it will ask for your work email address, ostensibly to follow up with you in case your chat gets suddenly disconnected,
Hiver AI can curate targeted emails that may lead you to purchase in the future which is great for the company.
4. 24/7 Availability
Customers don't operate on a fixed shopping schedule, and neither should brands.
I often order takeout late at night after binge-watching movies and usually opt for brands with 24/7 availability.
The best part about being available 24/7 for your clients is that you don't need to hire extra staff. You can easily automate the process and deploy bots to do the heavy lifting.
Imagine that after a night out with your buddies, you want to take a cab home in the wee hours of the morning.
You will likely opt for Bolt, Lyft, or Uber, which offer 24-hour customer support. On these platforms, you can easily request, book, inquire about prices, or get updates on their driver location from the convenience of your mobile phone.
5. Real-time Feedback
Client feedback is important for your business to understand client needs, challenges, and expectations.
These insights help you improve your products, services, and customer experiences, define trends, and make smarter business decisions.
And what better way to collect user feedback at scale than conversational marketing??
Conversational marketing channels like chatbots and live agents, allow customers to safely vent, applaud, offer suggestions, or air grievances without fear of criticism or backlash.
Take the example of popular food giant Domino Pizza, which uses chatbots to take customer orders on popular platforms like Facebook Messenger.
The detailed customer interactions help Domino's nail down popular food items and provide feedback on product and service quality and customer preferences. Dominos uses these insights to curate unique offerings tailored for specific users, improve quality control, and enhance bot capabilities over time.
6. Increased Conversions
Real-time, personalized conversations have the potential to increase urgency and force customers to make purchases.
Picture this.
You're out shopping and stumble across the most aromatic fresh naan you've ever seen. As you deliberate whether this Indian snack will add more inches to your bulging waistline, a sweet customer assistant approaches you and gives you an irresistible personal discount!
They even list the bread's main ingredients, including natural and organic products you love.
You'll surely take the deal, right?
LEGO the board game giant has perfected the psychology of personalized marketing. In 2017 LEGO launched its interactive chatbot, Ralph, to help shoppers choose the best gift box for Christmas shopping.
Ralph used personalized prompts, to pinpoint the best gifts for individual shoppers and even specially curated discounts for clients that led to increased conversions.
According to James Poulter, senior manager, of digital consumer engagement at Lego.
?“We are continuously searching for new and fun ways to engage with our consumers and shoppers. Chatbots are increasingly being used by brands to engage in the digital space, and in turn to drive sales. The Lego Group is one of the first in the toy industry to embrace this concept.”
7. Saving Costs on Customer Support
We all know how expensive it is to hire help, especially if it's qualified and highly trained personnel manning customer support departments.
For SMBs and, even larger organizations, the cost of training and maintaining a 24/7 customer support department may be prohibitive.
You can drastically reduce expenses by using chatbots and other AI-powered tools to handle the bulk of customer inquiries and human agents for complex issues.
The global fashion retailer H&M uses conversational bots for customer support on its website and popular social media channels, like WhatsApp.
The bot answers customers' FAQs, helps them track orders and returns, and provides information on product details, reducing the load on human agents and improving the overall efficiency of the customer care team.
Conversational Marketing Examples in Action
How are real brands using conversational marketing to increase conversions and drive sales? Here are a few real-life examples to inspire you.
1. Bank of America
Bank of America uses an AI-powered chatbot, Erica, to notify users of duplicate charges, monitor recurring charges, offer bill reminders, and track weekly spending.
It also offers personalized financial advice, identifies opportunities and risks, provides 24/7 support, and educates customers on financial topics.
Since its launch in 2018, Erica has been responsible for over 1 billion personalized interactions with Bank of America clients, handling an average of 1.5 million daily interactions.
And it's not only about curated customer interactions. In Q2 2023, Erica helped BOA realize a 19% increase in net income from $6.25 billion to $7.41 billion.
According to David Tyrie, the Chief Digital Officer and Head of Global Marketing at Bank of America, “Erica is the definition of how Bank of America is delivering personalization and individualization at scale to our clients,”
2. Amazon
Rufus is an AI-powered chatbot that offers detailed product descriptions, personalized recommendations based on user preferences, product comparisons, and order assistance.
Amazon, the e-commerce giant, uses Olympus, its Large Language Model (LLM) with over 2 trillion parameters to power Rufus to engage in real-time, human-like conversations with users
I asked Rufus for the best mountain climbing boots and it started by highlighting the main features of a good boot for climbing mountains before listing the best results for my needs.
3. Hellmans
When you think of Hellmans, the first thing that pops into your mind is mayonnaise, right??
You may not know that this Brazilian mayonnaise giant ran a very successful WhatsApp campaign that reached millions of participants.
To participate in the “whatscook campaign” all Brazilians had to do was text their mobile numbers to the company page and share a photo of their fridge's ingredients.
Professional chefs would then contact the participants and guide them on how to create stunning dishes and incorporate mayonnaise in their next meal.
Within the first 10 days, the campaign achieved a 99.5 approval rating, 13000+ new WhatsApp signups, 500+ recipes shared, and an average 65-minute brand-customer interaction.
The campaign was such a success that Hellmans extended it to Chile. Uruguay, Paraguay, and Argentina.
4. 1-800-Flowers.com
Picking the perfect gift for your loved ones isn't easy.
It's even harder when shopping on a large e-commerce platform like 1-800-Flowers.com which boasts tens of thousands of listings.
1-800-Flowers understands this well enough that they partnered with IBM Watson to create a smart virtual shopping assistant to help buyers quickly find the perfect gift packages.
Using an AI-powered chat assistant named Gwyn (Gift When You Need Them), all you have to do to get the perfect gift recommendation is state your event and zip code.
Conversational Marketing is the Future
Not so long ago businesses didn't have to try too hard to engage customers before making a sale. But in today's fast-paced digital world things have changed and customers now expect businesses to meet them where they are, offering instant, meaningful interactions.
While the days of the telegram and horse-drawn cart are long gone, remember that engaging customers in a friendly, helpful, and timely fashion will always endure.?
Integrating conversational marketing tools into your business can improve customer experiences and create a seamless journey for your audience. So to stay competitive, it’s time to adopt conversational marketing for stronger relationships—one message at a time.