Reducing Customer Acquisition Cost (CAC) can be a constant business challenge, particularly when coupled with pressure to deliver quality customer experiences. Recent advances in customer engagement tools that harness the power of artificial intelligence now provide a means to bridge this gap.
The graph below is an example of the potential cost savings artificially intelligent conversation can create for organisations.
Source: data from BI Intelligence, The Chatbots Explainer, 2016
Here are seven ways that customer engagement tools can decrease CAC by utilising artificially intelligent chatbot conversation:
For what might equate to the cost of one customer service or sales agent’s salary, you can service as many potential customers as you wish with artificially intelligent conversation. Queries can be accepted and processed instantly, 24 hours a day, 365 days a year for a fraction of the cost.
2. Get more value out of employees
Bringing on a chatbot doesn’t mean that you no longer need to employ staff.
Rather, customer service and sales agents will have more time freed up to better deal with complex issues or more demanding customers, better serving and converting those customers.
Getting more out of your existing staff will also assist in reducing CAC and delivering better customer experiences.
3. Capitalise on Messaging App users
With over 5 billion monthly users worldwide of messaging apps and nearly 50 percent of people preferring to contact a business through messaging than phone or email, chatbots with artificially intelligent conversation are a fantastic way to capture leads and acquire more customers right where they are.
4. Better customer journeys means more conversions
Consumers are more likely to convert to customers and buy your products if there are less barriers to entry. To create an easy conversion process, companies need to provide a customer journey where the acquisition to decision process is seamless and painless. This includes quick responses, self-service and personalised responses which are all capabilities of sophisticated customer engagement tools today.
With automated artificially intelligent conversation, customers don’t need to troll through a website or FAQs for information, wait for an email reply, or press 1 to wait in the queue for a cold response from a frustrated customer services agent. Rather, potential customers can ask questions, receive product suggestions and make purchases on the fly, right from their desktop or mobile.
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5. Increase ROI - Capitalise on your social media spend
Have you ever had a successful paid social media campaign with lots of impressions and reach but you’re just not seeing any conversions?
This often happens because people have to leave the social application in order to make the conversion. With the latest artificially intelligent customer engagement tools, customers can ask questions and purchase products instantly, directly through the application.
6. Make more informed decisions
The information collected with this technology can be used to better marketing strategies that target new customers. Not only can you receive information about the customers themselves, but feedback can easily be collected about a products strengths and weaknesses.
With more informed strategies, your acquisition spend is likely to be far more effective.
Artificially intelligent conversation is also available directly through your website. So when a potential customer is visiting your site, they can save time and effort by chatting with a bot and instantly receive product information and make purchases. This is incredibly valuable, with 55 percent of people spending 15 seconds or less on websites.
By offering engaging, instant conversation through your website, a chatbot can keep more people on your website longer, giving you a better chance of acquiring them as a customer.
Customer engagement software that merely enables user companies to communicate with potential customers by traditional methods like phone, SMS and email are no longer providing the most effective means of managing customer acquisition. By harnessing the power of artificially intelligent conversation, enterprises can drastically reduce CAC while also delivering better customer experiences.