Chatbots are transforming the world of business. By assisting users with everything from effortless purchases, insurance renewals, and online banking to offering product recommendations and booking a flight, Chatbots are increasingly being used across multiple industries. Chatbots are also becoming a new and important way for businesses to connect with customers in light of the digital transformation initiatives. In fact, according to a recent report, businesses that use Chatbots to automate conversations are 27% more likely to meet rising customer expectations than those that don’t. But how do businesses measure the success of their Chatbot or the benefits of using conversational AI? This is where Chatbot analytics can help.
Essentially, Chatbot analytics is the analysis of conversations between Chatbots and customers to generate meaningful insights about the customers. The crucial piece in the Chatbot analytics puzzle is defining the metrics. Here, key performance indicators (KPIs) play a significant part to gain in-depth customer insights, understanding how well a Chatbot is functioning, determining customer retention strategies, and understanding how the Chatbot can positively impact the growth of a business.
Here’s why every business should focus on Chatbot Analytics:
Improved Customer Insights
In an age of customer-centricity, businesses need to know their customers inside-out. To do this, organizations across industries are taking significant measures to analyze their data to gain deeper and actionable insights for their business strategies. But how do Chatbots help businesses gain customer insights? Chatbot analytics help businesses gain deeper insights into how customers engage with their digital assets, what their buying preferences are, and also help provide more information to support retention strategies.
Eased Customer Journey through the Marketing Funnel
Chatbots are helping businesses ease the flow of customers down the marketing funnel, from supporting marketing campaigns and potential purchases to enhancing customer loyalty. This flexibility enables businesses to integrate Chatbots within their existing strategies and help increase customer engagement. Chatbot analytics helps measure customer interaction, satisfaction, and retention rates. For instance, customer interaction rate is a significant customer engagement metric that provides insightful data like the number of messages exchanged between a user and Chatbot on average during a single session. The ‘leads generated’ metric is one of the most critical metrics in sales analytics, and leads generated and captured by Chatbots can lead to higher conversion rates. This can be exemplified as geography-centric marketing campaigns, which can help businesses focus on customers coming from a specific region. Another important metric is the retention rate, which measures the number of users returning and repeatedly interacting with the Chatbot. To follow this up with loyal customers, Customer Satisfaction Ratings (CSAT) help track customer loyalty by using feedback gathered by Chatbots and agents and running loyalty programs. To learn more about Customer Satisfaction Rating (CSAT) for chatbots and agents, click here.
Suggested Read: Chatbots for Marketing – A Valuable Asset
Better Customer Experience
Customer engagement and satisfaction are key indicators to measure customer experience. By better representing a human-like interaction, 24*7 availability, and instant resolution of queries, Chatbots can help ensure better customer satisfaction. To engage better with customers, businesses can use a Chatbot to initiate proactive chat. For example, the Bot can start a chat as soon as the customer experiences a payment error. Chatbot analytics uses a deflection rate to help businesses understand how Chatbots handle queries. Another vital metric to enhance customer experience is the human takeover rate. This measures the number of times Chatbots could not resolve customer queries and had to redirect to a human agent. Here, it is up to businesses to decide how and where to add further layers of training and development to their Chatbots to achieve the best possible results.
Analyzing data and making informed decisions are crucial for the successful growth of a business. Like other analytics, Chatbot analytics can enable businesses to track multiple KPIs and make meaningful decisions. For instance, a high Chatbot interaction rate can translate into active customer engagement and could underline a well-integrated Chatbot. The goal conversion rate (GCR) refers to a goal-reaching its completion. It can be illustrated by a customer signing up for a free service trial after interacting with a Chatbot.
Enhanced ROI Measurement
Technology adoption is at the forefront of enhancing ROI, and enabling cost savings by minimizing manual efforts can be a great advantage in achieving this. Conversational AI provides a blend of automation, AI, and analytics to help businesses assess and implement strategies best suited for their objectives and success. Chatbot analytics metrics help understand whether a Chatbot provides a positive ROI through their marketing efforts, sales cycles, or customer service initiatives.
Assessing Chatbot Effectiveness
In addition to ROI, the value addition a Chatbot generates also needs to be measured. The effectiveness and benefits of Chatbots depend on several metrics, including user metrics, fallback rate, cost per fall-back, and many more. Through detailed analysis, businesses can identify areas where their Chatbots are falling short and also compare them with other channels. Chatbot analytics provided by AmplifyReach helps you track real-time metrics to make data-driven decisions. Click here to know more about our chatbot analytics features.
Leverage Chatbot analytics with AmplifyReach to know your customers better. Talk to our experts today.