We hear the saying that conversational AI is taking over businesses' engagement strategies, and if you're not adapting, you're losing. Every new technology gets this hype from the early adopters. There is some truth to it. But what are the real use cases of conversational AI, and how can businesses adapt this to their routine? In this article, we try to break everything down.
What is conversational AI?
To engage in a natural, human-like conversation at scale and at any time with customers, businesses use conversational AI that can answer questions, resolve issues, and increase overall operational efficiency.
Benefits of conversational AI
As conversational AI can simulate humans, businesses can benefit immensely if it's deployed correctly. Some of the benefits of conversational AI are:
- Available all the time and can take any number of conversations simultaneously
- Can be deployed to assist any of your human-facing teams
- Improved engagement experience with extensive self-service functionalities
- Responds faster to customer questions, with zero waiting time
- Instant response rate and increased resolution rate
- Cost-efficient and improves overall operational efficiency
- Ultimately, more satisfied and loyal customers
But how exactly can businesses use conversational AI to achieve these benefits and more? We'll discuss them in detail in the coming sections.
Conversational AI use cases
Conversational AI—basically, a chatbot—can be deployed to businesses of any type and size. The general requirement for conversational AI is that the business have customer-facing departments. So, it can be deployed to your marketing, sales, support, and customer success teams for various use cases.
Conversational AI use cases in sales and marketing
Lead generation, qualification, nurturing, and conversion
For any business, websites are the final destination they want their prospects to reach. Even if they own other channels, ultimately, websites are designed as the engine that converts visitors into customers.
So, having conversational AI on their websites is crucial for businesses, as it can help their sales and marketing teams.
How does that work?
When prospects visit a website, they don't interact with the businesses unless they fill out a form or contact the business via email.
The average website conversion rate1 is 2-3% across industries, meaning that out of every 100 visits to your website, only 2-3 visitors take action.
However, conversational AI, which comes with built-in triggers, can be configured to proactively initiate a conversation that will drastically boost the conversion numbers.
How drastic? Well, almost 50%2.
By creating a proactive nudge, visitors will interact with the conversational AI chatbot, where businesses can collect their contact information and push them to CRM as leads.
Based on visitors' questions regarding the business and its offerings, marketing and sales teams can configure the chatbot to qualify their interest. If they ask in-depth pricing and other relevant questions, they can be configured to be considered highly interested.
Only these highly interested leads will be passed on to the sales team for nurturing. Sales teams can personalize their pitch to these leads based on their interest and the questions they asked, and then encourage them toward conversion.
This also means sales teams can avoid wasting their time on less-interested leads. They can be followed up for nurturing and conversion when they're ready to purchase.
Lead Scoring—Combining conversational AI with a scoring model
If you're using SalesIQ, Zoho's conversational AI platform, you can qualify leads based on their conversational history and combine that with their website activities.
With SalesIQ's visitor identification, you can track your visitors and what they do on your website. Lead Scoring can be configured to identify your high-intent prospects based on their actions. This'll help you segregate your visitors into hot, warm, and cold leads.
Product recommendations, virtual sales assistance, and scheduling
As we know, conversational AI can emulate humans; combining it with the knowledge base specific to your business can answer most of your visitor queries.
It doesn't stop there. If you offer multiple products and services, the AI chatbot can understand the prospect's needs, requirements, and use cases and recommend an appropriate solution.
If you want to take it up a notch, conversational AI can be configured to be your virtual sales assistant. Just as an actual salesperson would handle a visitor, conversational AI can learn their requirements, walk them through how your offerings can help them, and show them how to configure everything they need. It frees up your sales team's time, saves their effort in doing these repeated tasks, and allows them to focus on high-ticket prospects.
After conversational AI guides them through the product recommendations and assistance, and when they're ready to finalize the deal, the chatbot can schedule a meeting with your team immediately for quicker conversion.
Conversational AI use cases in customer support and success
Troubleshooting and the first line of customer support
In every business, a customer's interaction with your marketing collaterals and sales touchpoints is only during the evaluation stage. After conversion, they spend most of their time with your support team.
According to IBM3, 70-80% of businesses' queries are basic and repetitive L1 (Level 1) queries. However, this prevents agents' productivity and consumes their time and effort, which they'd rather spend focusing on critical high-ticket customers and issues. Conversational AI will help your customer support teams by being the first customer support line.
Integrated and trained with your knowledge base, resources, and other articles, the AI chatbot will share the relevant troubleshooting answers to help customers resolve their issues when such queries arise.
Query resolution, automated ticketing, and issue escalation
Conversational AI chatbots will be available instantly to the customers, so there'll be zero waiting time. Since it can provide answers as soon as they ask, it'll help with the resolution time. It helps businesses establish trust with the customers, and in turn, they get high customer satisfaction ratings.
When there are complex queries the conversational AI can't answer or where the customer is expecting a personalized solution, the chatbot can create an automatic ticket for them and a human agent can be looped in to attend to their query and resolve it. Customers can also use it to escalate their issues if a resolution isn't provided.
Customer retention and upselling
Once converted, it's the customer success team's responsibility to retain them. They can use conversational AI periodically to engage with the customers to know about the pain points if they're facing any.
It can also be used to roll out NPS (Net Promoter Score) or customer satisfaction surveys to identify happy customers among your user base and collaborate with them on case studies/testimonials.
With conversational AI, surveys can be run to understand the customer's usage, and based on their replies, the customer success team can try upselling.
Conversational AI examples
DoughBot 2.0, BreadPartners' conversational AI
BreadPartners, a family-owned ingredient manufacturer based in the US, has been using SalesIQ as its conversational AI. They started using SalesIQ for its visitor identification and insights capabilities and later found that the solution offers a top-notch bot builder.
Then, as part of their engagement strategy, they created DoughBot 2.0, a custom conversational solution for their business.
It's now helping their marketing teams by engaging passive visitors with proactive triggers. It's proven to be non-intrusive to them as it's helped reduce their bounce rate and increase engagement metrics.
Their customers can ask sales and support-related queries to learn more about their offerings and resolve any issues they may be facing.
DoughBot 2.0 is also integrated with ChatGPT to understand and answer more contextual and complex inquiries. From sample and documentation queries to employment opportunities, scheduling consultations, and more, conversational AI can handle them.
Here's what Michael Robinson, Senior Marketing and Sales Manager at BreadPartners Inc., has to say about SalesIQ:
"Our teams can now engage with queries more strategically, ensuring that those who need to see the requests do so without delay. This has not only streamlined our internal processes but also positively impacted our customer satisfaction levels."
- Michael Robinson, Senior Marketing and Sales Manager, BreadPartners Inc.
Read more: BreadPartners achieves exceptional engagement with a lean team using Zoho SalesIQ
Future of conversational AI
Compared to the last-gen LLMs (large language models), the ones we have now—especially after OpenAI's ChatGPT came into the market—are advanced. They can understand the context and emotion behind a query well and draft a personalized reply.
Hyper-personalization: In the future, we can expect conversational AI to be hyper-personalized. With technology around AI agents coming up fast, they'll have all the information about your customers, which can help businesses provide a hyper-personalized engagement experience at scale.
Virtual assistants: As AI agents evolve, conversational AI combined with agents won't just give you the answers—it'll do what's needed to resolve the issues you're facing.
Multimodal capability: In the future, conversational AI won't be limited only to text inputs—it'll have multimodal interaction capabilities, i.e., the ability to receive, process, and understand voice, videos, gestures, and more.
Also, in the future, the privacy and security aspects of conversational AI will be strengthened and tightly integrated.
Leverage conversational AI for your business
Zoho SalesIQ offers conversational AI as an Answer Bot that's NLP-powered by our AI technology, Zia. If you're a business, you can leverage SalesIQ's conversational AI to assist your marketing and sales team by collecting leads and then qualifying, nurturing, and converting them into customers.
Once leads become your customers, you can have SalesIQ as your support team's first line of communication if they have any queries. It can attend to them instantly, which increases their trust in your brand, and the immediate resolution helps you build loyalty.
Customer success teams can use SalesIQ to run surveys and feedback campaigns to understand their pain points and collaborate with your happy customers to create case studies and testimonials.
Want to experience it firsthand? Sign up for the product and test it out yourself.
Related resources
Here are some blogs to help you understand the complete potential of our live chat software.
FAQs on conversational AI examples and use cases
How customizable are conversational AI systems to match my brand voice and tone?
Conversational AI is highly customizable to match your brand voice and tone. The AI system can be trained with your brand's content—like your website content, landing pages, decks, emails, support replies, and more—to make the AI identify and understand the tone, language style, and response behavior. Conversational AI can also be trained by setting negative rules—the way you don't want the AI to behave. It'll further help the system understand how to match your brand's voice and tone.
What is the cost of deploying a conversational AI solution compared to hiring more human agents?
There is an upfront cost to purchase/build and set up a conversational AI solution, and businesses need to pay the operating cost to run it. Human agents incur costs for recruitment, training, salaries, benefits, upskilling, and the like. But what distinguishes conversational AI from human agents is its scalability and multi-tasking ability.
A report by Invesp4 states that businesses can save up to 30% of their costs by using chatbots.
What KPIs should I track to measure the success of conversational AI?
Some metrics businesses can monitor to measure the success of conversational AI are:
- Response rate: i.e., the time taken to provide the first response
- Deflection rate: % of queries deflected to human users without providing resolution
- Resolution rate: % of queries resolved by the conversational AI without any human intervention
- Customer satisfaction scores (CSAT): Customers' experience with the conversational AI
What ROI can I expect from implementing conversational AI in customer support or sales?
1. Reduced operational cost and can be scaled: Because the conversational AI chatbots will take care of half your support volume and act as your virtual sales assistant, your teams can achieve a lot more without increasing their headcount. It leads to increased revenue, satisfied customers, and reduced operational costs.
2. Saved time and effort: Your customer support and sales teams can focus on highly critical tasks that require hyper-personalization and leave the repeated, usual affairs to the conversational AI. This will help them save time and effort and allow them to focus on maximizing their output.
3. Increased customer trust and loyalty: Conversational AI's instant responses, personalized recommendations, zero waiting time, and better resolution rates will help you earn your customers' trust and loyalty.
How does conversational AI handle complex, multi-turn conversations?
To handle multi-turn conversations, conversational AI has:
Context management system: It tracks the context of the conversation to understand the flow and ensures the chatbot doesn't go out of context during the multi-turn conversations.
Intent recognition: It understands why the user is asking such questions and decrypts the intent behind the queries. It ensures the answers provided satisfy the purpose.
Memory and state tracking: This system acts as a memory and storage unit and helps conversational AI remember all the crucial details throughout the conversation.
Fallbacks and escalation: No system is perfect, and this applies to conversational AI as well. When the system isn't able to provide a satisfactory resolution, it escalates the conversation to the available human.
Source:
1. https://www.wordstream.com/blog/ws/2014/03/17/what-is-a-good-conversion-rate
2. https://www.alexanderjarvis.com/what-is-live-chat-conversion-rate-ecommerce/
3. https://www.ibm.com/think/topics/chatbot-use-cases
4. https://www.invespcro.com/blog/chatbots-customer-service/