Top 8 Benefits in 2023

Lead generation is one of the six¹ most important metrics for measuring the effectiveness of marketing campaigns. However, the subprocesses of a lead generation strategy, such as reaching your target audience or gaining/keeping new followers, are a challenge for %63² of the marketers. 

To mitigate such challenges, companies can use a lead generation chatbot to:

• Better qualify leads
• Identify potential customers
• Improve their marketing efforts, among other benefits.

This article explains what lead generation chatbots are and their top 8 benefits.

What is a lead generation chatbot?

Lead generation bots are a type of conversational AI chatbot designed specifically to navigate the customer through the sales funnel. In order to improve lead generation and sales efforts, these chatbots can:

• Initiate interactions with potential leads
• Ask relevant questions
• Qualify leads
• Collect contact information
• Nurture them
• Transfer exceptional cases to a human agent
• Send the data to a CRM system to be used by the sales team.

Moreover, lead generation chatbots, like other chatbots, can be deployed on various platforms like websites, social media, and messaging apps for optimum accessibility.

Sponsored:

Haptik.ai’s lead nurturing and lead generation chatbot can nurture and generate leads across multiple platforms as soon as an interaction starts, make product suggestions, and send them proactive messages like discount announcements or restock alerts to keep them engaged with your product.

Next sections will explore the benefits of using chatbots for lead generation. 

1. 24/7 availability

Constant availability is a benefit of all chatbots. By being available 24/7, a lead generation chatbot can immediately respond to potential customers and get more qualified leads at anytime of the day, in order to engage customers and nurture customer relationships.

A study done by HBR showed³ that the same number of companies were likely to answer a customer’s question in 5 minutes, 24 hours, or not take qualifying questions at all. Moreover, companies that answered a customer’s question within the first hour were x7 more likely to qualify leads, than those that did so after an hour, and x60 more likely than those that did so after 24 hours or more.

So companies should take advantage of chatbots for qualifying leads as they offer instant and personalized responses,

2. Instant lead qualification

Lead generation bots let companies instantly auto-qualify leads by:

• Asking a series of predefined questions about a product/service
• Comparing customers’ answers to the knowledge-base to determine if they qualify as high-intent leads

3. Scalable lead qualification

By using a lead generation chatbot, companies can screen more website visitors and identify more leads without increasing customer service teams’ workload.

For example, Upstox is one of Asia’s largest investment platforms. Their mobile app’s improvement coincided with more of their dormant users coming to the fore. So, Upstox needed a scalable solution to handle all the new potential leads. They used Haptik’s chatbot to onboard 220.5K⁴ customers in 6 months, resolving 78% of queries without a human agent.

3. Automated data collection

Chatbots can automate the data collection from target customers, a process otherwise done manually from lead generation forms. Data of interest would include:

• Contact details
• Demographic information
• Company info (for B2B sales)
• Purchase intent and preferences (asked directly or captured from product pages they visited)
• Pain point or needs
• Source of the lead (where the lead came from)

Furthermore, once all the useful data of customer journey and the high-quality leads are collected, the chatbot can automatically transfer the information to the CRM software for a consolidated holding of customer data.

4. Personalized interactions with potential customers

The captured data can be fed into the personalization algorithm of a chatbot for a personalized interaction with the lead. For example, if:

• The quality leads show interest in a certain product, the chatbot can nurture them by suggesting similar products
• The cart is abandoned, the bot can send the customer a reminder
• The business has different teams for different product lines or regions, the chatbot can route the lead to the right team
• A site visitor needs help during the sales process, the chatbot can guide
• The tone of two customers isn’t the same (i.e., one is optimistic and the other confused), chatbots with generative AI technologies can adjust the conversation tone to sympathize with the customer

5. Enhanced customer engagement

Perhaps the most important benefit of chatbots for lead generation is their ability to:

• Instantly answer current and potential customers’ questions
• Offer human-like responses
• Navigate them through the sales process

The overall effect would be an intensified and active user engagement, which could lead to customer conversations and to higher conversion rate.

6. Multichannel presence

The multichannel presence of a chatbot can improve lead generation by interacting with high-quality leads across websites, social media platforms, messaging apps, etc. This can enhance customer experience, improve customer satisfaction and brand visibility, and increase the possibility of capturing more quality leads.

7. Reduced costs

The culmination of all the aforementioned benefits of using chatbots in the lead generation process increases operational efficiency and lowers costs. That’s because whilst the bot is collecting lead information and answering customer questions round-the-clock, the sales and customer service teams can dedicate more time to value-driven tasks.

In addition, deploying chatbots for lead generation, especially as the company’s operations grow in size, is more economical than generating leads by hiring additional employees.

For example, CEAT is a tire manufacturer that experienced a 70%⁵ cost reduction by using a WhatsApp chatbot for lead generation than other marketing channels.

8. Detailed analytics

Lead generation chatbots can offer a wealth of useful analytical data, which would have been difficult and time-consuming to capture manually, to be used in marketing campaigns. Metrics include, but aren’t limited to:   

• Total interactions: Counts the total number of interactions the chatbot has had.
• Engagement rate: Proportion of users who interact with the chatbot after it initiates a conversation or sends a prompt.
• Qualified leads generated: How many users the chatbot has qualified as potential leads based on their responses to its questions.
• Conversion rate: Proportion of users who become leads or customers after interacting with the chatbot.
• Response time: Measures the time it takes the chatbot to respond to user queries.
• Session duration: Tracks the average length of user interactions with the chatbot.
• Drop-off points: Tracks where in the conversation users tend to drop off or stop interacting with the chatbot.
• Customer satisfaction: If you program your chatbot to solicit user feedback, the data gives a sense of how users perceive their interactions with the chatbot.
• Top user queries: Analyzing the most common questions or commands given to the chatbot can provide insights into what users are most interested in or confused about.
• User demographics: If the chatbot collects demographic information about users (with their consent), this data can provide insights into who your leads are and what segments of the market you’re reaching.

For more on chatbots and marketing

To learn more about how chatbots are being used in marketing efforts, read:

If you are ready to invest in a conversational AI solution, visit our data-driven list of chatbot providers.

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And if you had any more questions, reach out to us:

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1. “The State of Marketing.” HubSpot. 2023. Retrieved on August 2, 2023.
2. “The State of Marketing.” HubSpot. 2023. Retrieved on August 2, 2023.
3. “The Short Life of Online Sales Leads.” Harvard Business Review. 2011. Retrieved on August 2, 2023.
4. “Making Online Investments Easier with a WhatsApp Chatbot.” Haptik.ai. Retrieved on August 2, 2023.
5. “How CEAT Generated Quality Leads by Offering a Differentiated WhatsApp Experience.” Haptik.ai. Retrieved on August 2, 2023.

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Bardia is an industry analyst at AIMultiple. His bachelor’s degree is in economics from UC Davis, and his master’s in economics and finance from Bogazici University.

He primarily writes about RPA and process automation, MSPs, Ordinal Inscriptions, IoT, and to jazz it up a bit, sometimes FinTech.