How to enhance customer engagement with chatbots for marketing in India

Customer engagement in the Indian marketing landscape has undergone a significant transformation in recent years. With the rapid advancement of technology and changing consumer preferences, businesses are adapting to new tools and strategies to enhance their customer engagement efforts. One of the most impactful innovations in this realm has been the integration of chatbots for marketing in India.

Chatbots are revolutionizing the way businesses in India interact with their customers, providing an efficient, personalized, and automated solution for engaging with consumers in a dynamic and ever-evolving market.

The rise of chatbots for marketing in India

As a tech-savvy nation, India is at the forefront of chatbot innovation. Back in 2020, when businesses around the world were still hesitant to expose their customers to chatbots, 61% of "Digital Indians" saw the benefits of chatbots, and 45% of Indian consumers were already using bots to shop online. 

Only a few years later, customers and companies across India have fully embraced the new technology. India is one of the top five chatbot using countries. 

As chatbots have gotten more sophisticated in their capabilities, less frustrating for users, and easier to build for companies in the past years, more businesses have started to expand their use beyond the classic customer service case. 

According to a Statista survey among more than 250 chief marketing officers, CEOs, founders, and directors in India, 

• 21% think that chatbots can generate qualified leads
• 21% believe that bots can increase sales and conversions on e-commerce sites
• 21% see a good chance that chatbots in marketing can increase brand engagement
• 13% consider bots helpful for consumer research and better understanding of the target audience

Many experts therefore see chatbots for marketing in India on the rise. As per Bonafide Research's research report, "India Chatbot Market Overview, 2028," it's projected that the India Chatbot market will expand at a compound annual growth rate (CAGR) of over 30% between 2023 and 2028.  

How to use chatbots for marketing in India

By leveraging chatbots in marketing, companies are able to offer tailored services and personalized product recommendations at scale and without binding all marketing resources. 

By understanding and predicting consumer preferences, chatbots can offer product recommendations, personalized solutions, and assistance aligned with the customer's needs. Chatbots can effortlessly customize the customer experience by presenting tailored offers in the customers’ preferred regional languages, such as Hindi, Telugu, Bengali, and more.

This tailored approach to customer service and marketing has led to increased brand loyalty and customer retention in the Indian market. Consumers feel more connected and valued when they receive personalized recommendations and solutions, which, in turn, fosters a sense of loyalty towards the brand or service provider.

Three key strengths of chatbots for marketing

There are specific aspects unique to chatbots that make the technology so interesting for marketing. 

1. Analyzing customer data

Chatbots can access and analyze customer data from a variety of sources, such as CRM systems, purchase history, and website browsing behavior. This data can be used to identify patterns and trends in customer behavior, which can then be used to make predictions about their preferences.

2. Interacting with customers in a conversational way

NLP is a field of AI that allows chatbots to understand and respond to human language. By analyzing customer conversations, chatbots can learn about their preferences and needs. And they can also interact with customers in a more natural and human-like way which drastically improves the customer experience. 

3. Asking customers questions

Chatbots can also ask customers questions directly to learn about their preferences. This can be done through polls, surveys, or simply by asking customers what they're looking for. Chatbots can even gather opt-ins for promotional newsletters or broadcasting services. 

Use cases for marketing chatbots

Businesses can take advantage of chatbots in marketing in several ways. 

Gather information about potential customers

Chatbots can ask potential customers a series of questions to gather information about their needs, preferences, and budget. This information can then be used to qualify the lead and determine if they are a good fit for the product or service being offered.

Provide personalized product recommendations

Based on the information gathered from potential customers, chatbots can recommend products or services that are likely to be of interest to them. This can help increase the likelihood that the potential customer will make a purchase.

Handle objections and address concerns

Chatbots can address any objections or concerns that potential customers may have about the product or service being offered. This can help to build trust and confidence with the potential customer and increase the likelihood that they will make a purchase.

Offer promotions and discounts

Chatbots can offer personalized promotions and discounts to potential customers. This can incentivize them to make a purchase and help close more deals.

Collect feedback and improve the customer experience

Chatbots can collect feedback from potential customers about the sales process and the product or service being offered. This feedback can be used to improve the customer experience and increase sales.

Generate more leads

Seamlessly integrated into various digital platforms like websites or messaging apps, chatbots play a significant role, not only in fostering customer interactions but also in generating more leads and delivering a more personalized and effective marketing experience.

For example, once Orion Mall in Bangalore started using a WhatsApp chatbot to send regular updates and answer questions about ongoing events and offers at the mall, the mall was able to double the number of visitors. 

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Provide inspiration for marketers

Chatbots can actually also help your own marketing team. Especially large language models like ChatGPT can be a great help for creating content or gathering inspiration for campaigns. 

The impact of marketing chatbots in India

Chatbots in marketing improve customer experience in India

In the Indian market, the customization of services and recommendations delivered by bots based on individual consumer preferences has significantly improved the overall customer experience.

This is due to a number of factors, including:

• The increasing availability of data: Indian businesses are now collecting more data than ever before on their customers' preferences, demographics, and behaviors. This data can be used to create personalized experiences that are tailored to each individual customer. And chatbots are particularly apt at sifting through that data and utilizing it. 
• The rise of artificial intelligence (AI): AI is being used to analyze customer data and make predictions about their behavior. This information can then be used to provide personalized recommendations and services in a more seamless and conversational way.
• The growing demand for personalization: Indian consumers are increasingly demanding personalized experiences. They want to feel like they're being treated as individuals, and chatbots are great at delivering that (without costing companies a lot of money). 

Five companies that use chatbots for marketing in India

Nykaa: Combining service with sales

The Indian beauty brand Nykaa uses a chatbot for lead generation. In a first step, users can ask the bot questions. For example: "What is the best shampoo for dry hair?" In a second step, the bot then makes product recommendations and sends a shopping link based on the user's specific needs. 

Myntra: "MyStylist" provides styling tips

The e-commerce fashion brand Myntra recently launched "MyStylist", an AI-powered virtual shopping assistant on their app. 

Shoppers can ask the bot to suggest a look for any occasion (a wedding, a costume party, a beach vacation, ...), and the bot then responds by making styling suggestions from a list of Myntra products, and based on the user's input or browsing history. This makes the online shopping experience more interactive, more fun, and a lot more appealing. 

Sirona: Growing brand awareness with a WhatsApp bot

In 2022, the femtech company Sirona launched India's first "Period Tracker". People that wanted to track their menstruation cycle just have to send Sirona a WhatsApp message, and a chatbot then guides them through several question to help them better track their periods. 

The chatbot provided real value to users, and was thus able to increase brand awareness. At the same time, it helped Sirona grow their WhatsApp user base, and generated many leads. 

MakeMyTrip: Personalized travel recommendations

MakeMyTrip, India's leading online travel company, uses chatbots to provide personalized travel recommendations. The chatbot can help customers book flights, hotels, and tours, and it can also answer questions about their destination.

Paytm: Increased brand loyalty

Paytm is India's largest digital payments company. It uses chatbots to provide personalized financial advice and recommendations to its customers. For example, a Paytm chatbot could recommend a new investment product to a customer based on their risk appetite and financial goals.

Getting started with chatbots for marketing in India

While chatbots for marketing bring many advantages and offer a variety of use cases, many businesses are hesitant to set up a bot because they think it requires IT resources and a big investment. 

However, there are several solutions that provide easy chatbot solutions that require zero coding skills. Sinch Engage, for example, offers an intuitive drag-and-drop chatbot that only takes a few minutes to set up. You can either build the whole bot yourself or use existing templates for an even faster start. 

We also offer special solutions for marketing chatbots. And if you're looking for a more complex bot, check out our AI bot. No matter what your chatbot needs for marketing are, we got you covered! 

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