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Writer's pictureIshita Ghutake

Types of Conversational Marketing and How It Benefits Businesses

Updated: Jul 17


What is conversational marketing


In today's world, businesses must communicate with their customers effectively to create a strong brand image and customer loyalty. With the rise of mobile technology, SMS marketing has become an essential tool for businesses to reach out to their customers. But how can businesses make their SMS marketing campaigns more effective? The answer is conversational marketing.



What is Conversational Marketing?


Conversational marketing is a customer-centric approach that focuses on engaging customers in real-time conversations using various communication channels including SMS, social media, chatbots, and live chat. Conversational marketing aims to provide personalized, one-on-one interactions with customers to improve customer experience, increase customer satisfaction, and drive sales.



Why Conversational Marketing?


Conversational marketing offers a hassle-free approach to providing consumers with direct and concise responses to their inquiries, without the need to put them on hold. With the growing digital landscape, customers expect immediate solutions to their problems, and conversational marketing serves as an efficient and seamless way to meet their needs.


Furthermore, conversational marketing enables brands to establish robust connections with their customers and effectively promote relevant products.



Benefits of Conversational Marketing


01. Higher Conversion Rates


Engaging a customer with an authentic conversation can make the customer more likely to make a purchase. It can also encourage customers to make purchases faster, meaning that your brand can close leads faster.


Conversational marketing can increase conversion rates by providing customers with the information they need to make informed decisions.



02. Improved Customer Experience


Conversational marketing can improve the overall customer experience by providing personalized interactions and addressing customer concerns in real time. It can help your brand form stronger relationships with its customers.


Through two-way conversations, you can learn more about your customers and their needs. Conversations with customers can also make the customer's online buying process feel more human.



03. Cost-effective


Conversational marketing is a cost-effective way to communicate with customers, as it allows businesses to automate conversations and reduce the need for customer support staff.



04. Shortening the length of the sales cycle


Conversational marketing can also shorten the length of your sales cycle by streamlining the buying process. Quick messaging conversations can eliminate the need for emails or phone calls that can draw out the sales process.


Essentially, conversational marketing can allow you to provide more information to your customer in less time, making the customer's buying process faster and easier.



How to build a Conversational Marketing Strategy?

Conversational marketing involves two-way communication between the business and the customer.


It can be initiated by the customer or the business, and it can take many forms, such as surveys, polls, quizzes, and even games.


The goal is to engage the customer in a conversation that feels natural and helpful, rather than just pushing products or services.


Some steps that can be followed for a good conversational marketing strategy are mentioned below.



01. Define your goals


Determine the problems you aim to solve for your customers and how conversational marketing can help you achieve these goals.



02. Identify communication channels


Decide which communication channels you will use to connect with your customers, such as chatbots, social media, email, or SMS.



03. Personalize your messages


Tailor your messages to suit your customers' interests, needs, and behaviors at each stage of the buying process. This will help to establish an authentic connection with your customers.



04. Collect feedback


Seek feedback from your customers to evaluate the effectiveness of your strategy and make improvements where necessary. Use customer feedback to refine your conversational marketing approach and continue to provide value to your audience.




Types of Conversational Marketing with Examples


01. Chatbot


Chatbot is a computer program that uses AI to interact with customers through a brand's website, SMS, or social media. Available 24/7 but can only answer specific questions.

Bank of America, H&M, and many more companies are now using chatbots to provide customer support and answer specific questions.


02. Live Chat


Live chat is a popular customer support method that interacts with customers through various social media platforms to clarify doubts and provide support.

Most of the companies across the globe including Airbnb and Shopify use live chat to interact with customers on various social media platforms and provide support.



03. Voice Assistant


Voice assistants use voice technology to converse with customers, providing more interest in the product, especially when text-based communication may not be effective.

Amazon's Alexa and Google Assistant use voice technology to converse with customers and provide information about products and services.



04. Email Marketing


Although not fully conversational, email marketing still helps to build a relationship with the target audience and can be a professional way of marketing.

This is also a popular form of conversational marketing used by popular companies such as Airbnb and Uber. They use email marketing to build a relationship with their customers and promote their services.


05. Social Media Marketing


This provides a human conversation through various social media platforms, which customers may enjoy more than communicating with a chatbot.


Some renowned brands like Wendy's and Nike also use social media platforms to provide human conversation and engage with their customers.



06. SMS Surveys


SMS surveys are another form of conversational marketing that can help businesses gain valuable insights into customer preferences and opinions.

Subway and Chipotle use SMS surveys to gain valuable insights into customer preferences and opinions.



07. Conversational advertisements


Online advertisements can include chat boxes so that customers can start a dialogue with a brand within the advertisement.

Sephora and KLM Royal Dutch Airlines use conversational advertisements to start a dialogue with their customers within the ad and increase engagement.


08. Conversational SMS marketing


By using a conversational SMS marketing (Two-way texting) strategy, you can create a two-way communication line with your customers through SMS messages.

Papa John's and Dunkin' Donuts use conversational SMS marketing to create a two-way communication line with their customers through SMS messages and provide personalized experiences.


If you need to get started with two-way texting with your customers, Falkon SMS can help with you that.



Conclusion


Conversational marketing types vary among brands and products, and choosing the appropriate platform can help businesses better communicate with their customers and build stronger relationships.


In conclusion, conversational marketing is a customer-centric approach that can help businesses improve customer engagement, increase conversion rates, and provide a better customer experience.


By incorporating conversational marketing into their SMS marketing campaigns, businesses can create a more personalized and effective communication channel with their customers.



Frequently Asked Questions about Conversational Marketing



01. How does conversational marketing differ from traditional SMS marketing?


Conversation marketing focuses on two-way communication, personalized interactions, and building relationships with customers, while traditional SMS marketing tends to rely on one-way communication and generic promotional messages.



02. How can businesses develop a conversational marketing strategy?


Businesses can develop a conversational marketing strategy by identifying their target audience, selecting the right communication channels, and creating personalized content.



03. What types of businesses can benefit from conversational marketing?


Almost any type of business can benefit from conversational marketing. Whether you're a small business or a large corporation, conversational marketing can help you connect with customers in a more personalized and engaging way.



04. How do I measure the success of my conversational marketing strategy?


To measure the success of your conversational marketing strategy, you can track metrics such as engagement rates, conversion rates, and customer satisfaction. You can also use analytics tools to gain insights into how customers are interacting with your brand and adjust your strategy accordingly.

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