Twitter is preparing to defend itself against chatbots (TWTR)
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Using Twitter as a mode of business to consumer (B2C) communication could result in up to 20% more consumer spend in the future, according to a recent joint study from Twitter and Applied Marketing.
The survey examined interactions between more than 3,100 Twitter users with a variety of industries like pizza delivery chains and airlines. The glowing results from the study could be an attempt by Twitter to remind businesses of its capability as a customer service channel, which is likely being threatened by the uptick in interest regarding chatbots, according to Marketing Dive.
Here are the highlights from the survey:
- Responding to customers on Twitter increases word of mouth activity, likeliness to recommend to others, and customer satisfaction. Overall, customers are 44% more likely to share a positive experience after receiving a positive response on Twitter compared with other channels. Similarly, they are 30% more likely to recommend a brand.
- Responding to Tweets boosts customers' willingness to spend. On average, users are willing to spend between 3% and 20% more on a business' items in the future.
- The faster the response, the greater the revenue generated. While this varied across industries, the study showed that responding in around 5 minutes or less resulted in massive increases in willingness to spend on the next transaction.
Chat apps and chatbots — automated software that aims to replicate human interactions — are become an increasingly important channel for B2C communications. In fact, 53% of respondents from the US and Germany said in a study by Ovum that they prefer speaking to businesses over chat apps because of their faster speed compared with other channels.
Other popular outcomes from using chat apps (and, perhaps, Twitter) is that it minimizes the number of apps users need to switch between on their smartphones, and it keeps a history of past communications. Businesses that are not investing in technology that allow these interactions to take place, are not only setting themselves up to lose to rival businesses that do, but could also be losing potential revenue.
Advancements in artificial intelligence, coupled with the proliferation of messaging apps, are fueling the development of chatbots — software programs that use messaging as the interface through which to carry out any number of tasks, from scheduling a meeting, to reporting weather, to helping users buy a pair of shoes.
Foreseeing immense potential, businesses are starting to invest heavily in the burgeoning bot economy. A number of brands and publishers have already deployed bots on messaging and collaboration channels, including HP, 1-800-Flowers, and CNN. While the bot revolution is still in the early phase, many believe 2016 will be the year these conversational interactions take off.
Laurie Beaver, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on chatbots that explores the growing and disruptive bot landscape by investigating what bots are, how businesses are leveraging them, and where they will have the biggest impact.
The report outlines the burgeoning bot ecosystem by segment, looks at companies that offer bot-enabling technology, distribution channels, and some of the key third-party bots already on offer. The report also forecasts the potential annual savings that businesses could realize if chatbots replace some of their customer service and sales reps. Finally, it compares the potential of chatbot monetization on a platform like Facebook Messenger against the iOS App Store and Google Play store.
Here are some of the key takeaways:
- AI has reached a stage in which chatbots can have increasingly engaging and human conversations, allowing businesses to leverage the inexpensive and wide-reaching technology to engage with more consumers.
- Chatbots are particularly well suited for mobile — perhaps more so than apps. Messaging is at the heart of the mobile experience, as the rapid adoption of chat apps demonstrates.
- The chatbot ecosystem is already robust, encompassing many different third-party chat bots, native bots, distribution channels, and enabling technology companies.
- Chatbots could be lucrative for messaging apps and the developers who build bots for these platforms, similar to how app stores have developed into moneymaking ecosystems.
In full, the report:
- Breaks down the pros and cons of chatbots.
- Explains the different ways businesses can access, utilize, and distribute content via chatbots.
- Forecasts the potential impact chatbots could have for businesses.
- Looks at the potential barriers that could limit the growth, adoption, and use of chatbots.
To get your copy of this invaluable guide, choose one of these options:
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of chatbots.