Conversational AI in marketing

Explore the benefits of conversational AI for marketing agencies, from boosting customer satisfaction to optimizing workflows.

Senior Content Marketing Specialist

Razan Saleh

Senior Content Marketing Specialist

The digital marketing industry is evolving faster than ever! And with every new tech development comes the opportunity to create even better results for your clients. Digital Marketing Agencies (DMAs)  looking to differentiate themselves from the competition need to ensure their strategy includes one important element: Conversational AI.

Read on to learn more about the benefits of conversational AI for marketing and how it can boost your customer engagement and drive ROI.

What is conversational AI in marketing?

Conversational marketing is a two-way dialogue approach that uses real-time interactions to engage customers using chatbots or agents and quickly move them across the purchase journey.

Just like speaking with friends and family, conversational marketing enables businesses to engage with customers at scale and deliver more personalized experiences through one-on-one conversations over the customer’s favorite channels.

How does AI elevate conversational marketing interactions?

Integrating conversational AI could pose new business opportunities for your DMA and take your business strategy to the next level. Whether integrated into various social channels, a website, or a mobile app, AI can help humanize automated interactions on a personal level.

Interactive communication brings accessibility and personalized conversations to your clients’ prospects and customers anytime and anywhere. Now that we have a basic understanding of conversational AI let’s find out how it can elevate your marketing agency and supercharge your clients marketing strategy.

Advantages of conversational AI for marketing 

When you think of conversational AI, images of robots with the ability to think and carry out basic human tasks immediately come to mind. But due to evolving technology, conversational AI is now a complete digital marketing solution capable of automating repetitive tasks, improving efficiency, and enhancing engagement at each stage of the customer journey.

Research indicates the market for conversational AI is projected to grow at a compound annual growth rate (CAGR) of 21.9%, rising from  $4.8 billion in 2020 to nearly $14 billion in 2025.

Here are a few ways that conversational AI can improve your marketing efforts:

Increase campaign ROI

Using chatbots to engage with customers in a more personalized and interactive way, businesses can target specific customer segments with relevant offers and messages, leading to higher conversion rates and, ultimately a higher return on investment for each marketing campaign.

Provide personalized customer service

Chatbots can provide quick and efficient responses to customer inquiries, addressing common questions and concerns in real-time. This enhances the overall customer experience and helps businesses build stronger relationships with their customers by providing instant and tailored support.

Elevate customer engagement

Using chatbots as an interactive channel to engage with customers enables businesses to capture the attention of their target audience and keep them engaged throughout the customer journey. This increased engagement can lead to higher brand loyalty and customer satisfaction, ultimately driving repeat business and referrals.

And as AI-powered chatbots become more prevalent, businesses need to integrate conversational marketing as a part of their overall customer engagement strategy. This combination enables digital marketing agencies to help their clients better connect and engage with existing and potential customers resulting in the following:

  • Improved customer experiences
  • Enhanced customer engagement
  • Effective targeting and personalization
  • Increased customer satisfaction and loyalty 
  • Improved Return On Advertising Spend (ROAS)

Let’s find out how these advantages translate to real-world use cases and examples of conversational AI in marketing.

Conversational AI use cases for digital marketing

Conversational AI enables brands to have full-fledged conversations with customers as if they’re conversing with a real person. A recent report indicates that 90% of brands surveyed claimed measurable improvements in their resolution speed for customer complaints and overall customer satisfaction when using conversational AI.

In digital marketing, chatbots are used to optimize the customer journey while also scaling engagement efforts. When you incorporate generative AI into the picture, these bots will serve as a transformative force enabling marketers to unlock new levels of efficiency, personalization, and performance.

Here are a few real-world use cases in which conversational AI is transforming digital marketing:

Send targeted promotional messages

Conversational campaigns can offer targeted content and customized conversational styles based on customer demographics, language preferences, interests, and purchase history. This will ultimately improve your targeting, increase engagement and drive conversions.

Automate campaign management

Conversational automation allows you to automate specific repetitive tasks such as campaign management and scheduling, personalize content and optimize campaigns to engage with customers anytime and anywhere, resulting in streamlined processes and enhanced operational efficiency.

Enhance customer stickiness and boost ROAS 

AI-powered conversational tools are designed to boost the return on ad spending (ROAS) of marketing campaigns and create stickiness with clients through personalized experiences, ultimately resulting in increased customer lifetime value (CLV).

Provide personalized and improved experiences

Leveraging data insights gathered from conversations to deliver relevant campaigns that trigger personalized experiences anytime, anywhere, and across the entire customer journey.

Deliver accurate insights and predictions 

Conversational AI allows you to analyze large volumes of data, identify behavioral patterns and make data-driven decisions based on the findings. These insights can be used to allocate budgets effectively, predict customer behavior and anticipate outcomes that drive results.

Tools to power conversational AI

Gone are the days when you had to generate leads through long and boring online forms. By now, businesses should know that consumers are looking for quick, accessible, and convenient ways to engage with brands. And what’s the best way to do it? Implementing interactive two-way messaging and innovative AI tools to drive:

  • Personalized experiences: Use a Customer data platform (CDP) to understand data gathered from different sources and past interactions to segment audiences, provide personalized conversational experiences, and suggest products that closely match a user’s interest level, background, and needs.
  • Enhanced customer engagement and retention: Use conversational marketing to engage customers in real-time and provide targeted messages, special deals, coupons, and other offers to boost customer satisfaction and drive retention.
  • Optimize lead generation: Leverage Natural Language Processing (NLP) to engage customers using personalized content over the right channels, deliver more efficient sales cycles, and drive revenue.
  • Access to omnichannel marketing: Using the right AI conversational platform allowes you to connect instantly with customers across different channels like WhatsApp Business PlatformInstagramLive Chat, and others triggering a whole new set of conversations and opportunities for engagement throughout the customer journey.

To help you understand more about conversational AI, watch the video below and see how our partner Bruketa&Žinić&Grey an advertising and branding agency is helping their clients deliver conversational experiences at scale.

Challenges for marketing agencies implementing conversational AI

Incorporating conversational AI into your marketing agency sounds like the ideal solution to elevating your business. And while it brings numerous benefits to your business, there are some challenges obstructing the adoption of this technology at scale. Here are a few to consider:

  • Cost & resource limitation: Implementing conversational AI and automation can be expensive for smaller agencies with limited resources. It requires significant investments in hardware, software, training, and specialized staff to manage and operate these systems.
  • Integration: Conversational AI technologies may not be compatible with an existing IT infrastructure or may require significant modifications to integrate with current systems. This can be a complex process that requires significant time and resources.
  • Complexity of implementation: Incorporating AI into digital marketing requires specialized technical skills, resources, and scalable technology. Your business might face potential incompatibility with existing technologies and difficulty in integrating seamlessly across different channels and platforms. This, in turn, could affect the efficiency of the solution. 
  • User acceptance: User acceptance can be a challenge when implementing new technologies, particularly if employees are resistant to change or do not understand the benefits of the new systems.

Conversational AI is an evolving field, and maintaining and improving your customer engagement over time is crucial. Addressing these challenges requires careful planning, management, training, and investment in specialized personnel and hardware infrastructure to ensure your DMA can effectively leverage these technologies and achieve its strategic goals. Let’s find out how Infobip can help.

How the right technology partner can help your agency succeed

Partnering with a leading technology partner can help you monetize revenues, boost customer engagement, optimize lead generation and enhance scalability.

We can help you cover all the touchpoints across your customers’ journey, From simple use cases to the most complex conversational scenarios, we provide a tech stack that enables conversational experiences as part of an overall communication strategy to help you minimize costs and optimize resources.

And as a leader in CPaaS technology, we make sure our solutions are easy to integrate into your communication stack. Just plug and play.

We provide ongoing enablement services to support you with continuous improvement, product training, and maintenance. And through our CX consulting solutions, you’ll be able to:

  • utilize our experts to grow your ROI
  • keep up with the latest CX trends and tech advancements
  • help your clients deliver superior conversational experiences.

Successful conversational journeys built by DMAs and Infobip

Coolinarika by Podravka

Infobip partnered with Micorsoft Azure OpenAI Service, and digital agency C3 Croatia – 01 Content & Technology, to create an AI digital assistant – SuperfoodChef-AI by Coolinarika. The AI assistant is conceptualized and designed based on human-centered design principles and nudge architecture. SuperfoodChef-AI can:

  • create an enhanced user experience on the largest regional culinary platform
  • show users the importance of a varied and nutritionally rich diet in a simple, engaging and conversational manner
  • help users with culinary and nutritional advice and recommendations of delicious and healthy recipes

Pavle by LAQO

We partnered with Croatia’s first fully digital insurance provider, LAQO and Bruketa&Žinić&Grey to build an AI digital assistant, Pavle. The AI assistant was created to improve customer service with 24/7 availability, accessibility, and personalized support. Together with our chatbot building platform Answers, Bruketa’s team and Azure OpenAI Service, LAQO was able to launch a generative AI-powered assistant that:

  • reflects LAQOs brand voice and personality
  • offers 24/7 support for FAQs and repetitive queries
  • is available to assist in two languages: Croatian and English

Build your conversational future with best-in-class partnerships

The future of digital marketing is here. And by that, we mean conversational AI. It’s all about knowing your customers, predicting their behavior, and tailoring campaigns that drive results. Start building your conversational future with the best-in-class partnership.

By partnering with us, we can help you scale growth, expand your digital marketing efforts from customer engagement campaigns to additional services to grow your relationship with customers.

Combining the power of conversational channels, AI, and our customer engagement and data platforms, you can simplify your customer journey and ultimately drive more conversions. Digital marketing agencies can monetize revenues by selling these solutions to small businesses and enterprises or co-create their own to expand their product portfolio.

Together we can navigate the complexities and challenges of incorporating conversational AI into your marketing strategy and help your clients deliver superior conversational experiences that build customer loyalty and increase satisfaction.  

Ready to elevate your marketing with conversational AI?

Unlock the power of our conversational AI solutions and learn how you can drive sustainable growth.

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Aug 31st, 2023
9 min read
Senior Content Marketing Specialist

Razan Saleh

Senior Content Marketing Specialist

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