Performance Marketing Using Chatbots


Integrating a chatbot to your marketing strategy is soon becoming a popular trend. A chatbot offers various benefits that every brand can utilize. Needless to say, your marketing campaigns, when backed with the right technology can boost sales and revenue exponentially. In this article, we will particularly talk about how chatbots are leveraged in performance marketing. Before that, let’s begin by understanding the concept of performance marketing.

What is Performance Marketing?

What is Performance Marketing?

Performance marketing is a technique that is embraced by various businesses across the globe. It fundamentally revolves around the concept of paying the marketing cost only when a certain action takes place. The actions are typically a click, lead generation, a sale, and the like. Performance marketing is done through paid marketing such as local advertising, social media advertising, and search engine marketing etc. However, businesses have started leveraging conversational marketing recently for the growth of their brand. A chatbot is one such technology that companies vouch by. That being said, let us understand how to leverage performance marketing with the help of chatbots.

Why turn to chatbots for performance marketing?

Chatbots are becoming very popular these days and each one of us must have used a chatbot without even knowing about it. Needless to say, chatbots can speed up the processes and also capture adept data. Let us learn about the reasons why a chatbot is ideal for performance marketing.

  • The chatbot is always awake

The chatbot is always awake

Contacting a business outside of working hours can be difficult and customers can hardly get hold of the support team. Although companies have standard times in which they operate, it is great when they are available even after work hours. This is beneficial especially when an overseas client tries to reach out. Your business needs to accommodate such needs to serve more customers at all hours.

This is where a chatbot shines! It helps your business in continuously serving customers without any interruption in communication. Moreover, customers usually move on very quickly from one brand to another if their questions aren’t asked. So the window between the time when they show interest to when their questions are answered is crucial! A chatbot essentially automates conversations and so is very helpful for your performance marketing endeavors.

  • Chatbot never gets tired

Chatbot never gets tired

Your sales team can easily get overwhelmed with tonnes of requests they receive daily. Moreover, these requests are very repetitive and so it can also get boring to answer them all continuously. However, it is equally important to treat every inquiry with the same attention because any prospect can turn into a customer. This means that you can make the most of every opportunity of converting a customer. A chatbot processes every request with the same enthusiasm and doesn’t ever get tired or bored.

  •  Chatbots can process huge chunks of data

 Chatbots can process huge chunks of data

When you have a chatbot in your marketing arsenal, you don’t have to worry about processing huge data! Chatbots can help identify patterns and trends which you can use as feedback and enhance your offerings. It also gives you deeper insights into your target audience and how you should be dealing with it. When it comes to performance marketing, information like this is very beneficial and a chatbot helps you take care of it. When you have the right knowledge about your target audience you can design advertisements that are spot on! This saves your money and time drastically!

  • Chatbots help you make predictions

Chatbots help you make predictions

When you have access to the key patterns you can always plan better advertisements for the future. A chatbot talks to multiple customers in a day and thus has a lot of information already. The chat logs are indeed a reservoir of information that can be leveraged to make apt predictions about the results, budget, and much more.

While the advantages of chatbots are never-ending, you also need to know exactly how you can measure the success of a chatbot. Let us take a look at the performance metrics that help you see how successful a chatbot is.

Chatbot Performance Metrics

After implementing chatbots you would certainly want to measure its performance and so I have listed the top chatbot performance marketing metrics for your reference.

1. Total Reach of the Chatbot

Total Reach of the Chatbot

Getting a good reach for your business should be the ultimate priority for every marketing campaign related to chatbots. The more people you reach, the better your campaign performs. The interaction also takes into account new and repeat visitors. Besides the traditional tools, you can also incorporate conversational ads. This is basically when a user clicks on a URL and is taken on a landing page with a chatbot on it. The customers can easily ask queries and know about the products thus giving a greater reach and time for interaction.

2. Active, Engaged, and New Users

Active, Engaged, and New Users

The total number of users who read the messages by a bot are called active users. These leads are also potential buyers and for a promotional campaign, it is crucial to track active users. Likewise, engaged users are the ones that talk with a bot regularly. These are often the prospects from whom you are going to learn a lot. The insights you get from these prospects help in performance marketing. Lastly, there are new users! These are the users whom you have acquired recently. The way they respond to your content is also a nudge for you to refine your chatbot.

 3. Average Interaction Duration

Average Interaction Duration

One of the ways to measure chatbot performance is to check the average duration of the interaction. First, allow your bot to interact with a good number of users and then assess the duration of their interaction. Look at the count and stats to get a rough idea about the usage. The interaction duration also depends on the functionality of the bot. For instance, if the bot is designed for paying bills and placing orders then the duration is short. Likewise, if the bot does multiple jobs like booking an appointment and asking for personal details and the like then the duration increases.

4. Chatbot Response Time

Chatbot Response Time

It can be tricky when you are trying to provide a human-like experience to your customers with a chatbot. If you respond too early to their queries it might get obvious that a bot is responding. So make sure that you add reasonable typing delays. Failing to keep a good response time can also drive away the customers.

 5. Chatbot Retention Rate

Chatbot Retention Rate

The chatbot retention rate refers to the total number of customers who have responded to the chats amongst the total number of people with whom the chat was initiated. A high retention rate means that your campaign is successful whereas a low retention rate indicates failure. Moreover, to maintain a good retention rate you need promotional campaigns that offer something. Like a chat to get a discount or sharing a promo code with the customer.

Final Take

Chatbots can be truly instrumental in implementing performance marketing. They are available 24/7 and aren’t bored with the redundant tasks that come their way. A chatbot can help you scale your business faster while paying equal attention to the customers. The success of a chatbot campaign or chatbot hosted on your website can be measured with the metrics mentioned above.

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