Conversing in Code: The Rise of Chatbots and the Art of Conversational Marketing

Kimaya Parjane

The world is in the AI-era and adopting cutting-edge technologies to improve client experiences and optimize marketing campaigns is an inherent capability for today’s enterprises. Chatbots are one such emerging technology that redefines how marketers interact with their audience. These conversational assistants driven by AI are revolutionizing customer service by giving users personalized interactions around the clock, prompt responses to their questions, and assistance with purchases. Gartner1 predicts by 2027, digital assistants will account for 25% of all commercial client support channels.

Conversational marketing is a paradigm shift in marketing tactics emphasizing personalized, real-time customer discussions to increase engagement and conversion rates. By mastering conversational marketing techniques and navigating the development of chatbots, businesses can offer seamless customer experiences and forge closer bonds with their target audience.



How are Chatbots beneficial to Businesses in Conversational marketing?

Let us discuss the primary advantages of using Chatbots when developing a conversational marketing strategy:

1. Around-the-clock availability

Unlike conventional customer service centers and agents, a Chatbot can work 24/7, 365 days a year, without requiring a break. This feature allows an aggrieved client to use the Chatbot’s to initiate their query, request, or complaint in real-time.

2. Potential for Lead Generation

Predetermined criteria embedded into the chatbot program can help segregate good leads from cold ones. Chatbots can help an organization with lead qualification and nurturing potential clients by providing prompt customer support, leading to maximum lead conversion. Bots can sort out the most prospective customers directly to the agents for further conversion process.

3. Cost-effectiveness of Bots

Developing the right Chatbot for your platform can take some time and money. However, once that is done, chatbots’ ability to handle numerous queries simultaneously can help organizations cut costs by using fewer human agents and incurring cheaper operating expenses.


What are the various types of Chatbots popular among Marketers?

Organizations can choose to use any Chatbot to optimize their conversational marketing strategy. Let’s go through some types of chatbots that are popularly used by organizations for conversational marketing:


1. Menu/Button-based bots

Menu-based or button-based chatbots offer users predefined options to choose from, guiding them through a decision tree. While they’re helpful for essential queries, they may struggle with more complex requests and lack flexibility for free-text input.

Menu/Button chatbot example: Dominos2 chatbots assist customers in placing delivery orders.

2. Rule-based bots

Rules-based chatbots employ if/then logic to direct discussions according to predefined questions and responses. They work well for simple questions, but they need help answering complicated ones and might irritate users by repeatedly requesting the exact details. When faced with unfamiliar queries, these chatbots may transfer users to live agents or become gatekeepers, hindering the user experience. Rule-based chatbot examples include booking tickets, canceling orders, making hotel reservations, etc.

3. AI-powered bots

AI-powered chatbots use Natural Language Understanding (NLU), intent recognition, and improved search capabilities to understand user inquiries regardless of phrasing. When unsure, these bots seek clarification and gradually learn from their mistakes to provide better solutions. They make ordering and customer service easier by integrating with company systems and smoothly moving users to live agents when necessary.

Compared to a Rule-based bot, an AI-powered chatbot can process non-standard queries.

4. Voice chatbots

Voice chatbots enable users to interact by speaking rather than typing. While traditional Interactive Voice Response (IVR) systems may frustrate users with limited functionality, AI-powered voice chatbots leverage Natural Language Processing (NLP) and integrate it with telephony technologies to understand spoken queries and provide relevant responses. This enhances customer engagement, improves call resolution rates, and reduces wait times compared to text-based chatbots.

The best examples of Voice chatbots are Siri3 Alexa4

5. Generative AI chatbots

Generative AI chatbots, also known as language models, use advanced AI techniques like deep learning to generate text responses that mimic human-like conversation. In contrast to rule-based or AI-powered chatbots, Gen AI chatbots operate independently of databases or pre-programmed responses. Instead, they take in massive volumes of data, identify patterns and structures, and then provide responses based on the information received and the context. With the capacity to provide original and contextually relevant responses, Gen AI chatbots can hold more organic discussions with users.

GenAI is redefining chatbot5 conversations with human-like responses.


Examples of how various industries are using Chatbots in Conversational Marketing

1. E-commerce

A well-known platform for AI-powered chatbots for Facebook6 Messenger, Instagram7, Shopify8, and e-commerce is called Manychat9.


2. Banking & Finance

In the same way that a bank professional would, the Chatbot known as SBI10 Intelligent Assistant, or SIA, will assist clients with routine banking needs.


3. Travel and Hospitality

Singapore Airlines Group’s Pelago11 is a generative AI-powered travel consultant.


4. Education

Big names like Duolingo12 and Mondly13 are inventively utilizing AI bots to improve learner engagement and accelerate concept comprehension.


5. Fashion & Beauty

Big brands such as Sephora14, Tommy Hilfiger15, Victoria’s Secret16 and Burberry and 17 use their bots to give custom styling tips, product reviews, virtual trials, and virtual stylists.



In conclusion, Chatbots have become invaluable conversational marketing resources, helping companies improve client communications, simplify processes, and increase engagement and sales. The future of conversational marketing and Chatbots looks promising. As artificial intelligence and natural language processing grow, Chatbots will develop further, becoming more intelligent & wiser and able to provide more seamless & personalized interactions. Businesses will find new ways to innovate, stand out from the competition, and propel success in the digital era as they embrace and leverage Chatbots. 

At V2Solutions, we know the revolutionary potential of conversational marketing and Chatbots for driving company growth. Our seasoned specialists have extensive knowledge and experience navigating the ever-changing field of conversational marketing. As your dependable partner, V2Solutions can assist you in maximizing fresh opportunities, spreading your message, and standing out in a crowded market.


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