How Businesses can Find Customer Insights with the help of chatbot - Appy Pie

How Chatbots Help Businesses Find Customer Insights

Abhinav Girdhar
By Abhinav Girdhar | Last Updated on September 18th, 2022 8:42 am | 5-min read

Chatbots are the talk of the town. Businesses that never gave this technology a second-thought are preparing to jump on the bandwagon due to the rapid digitalization in wake of COVID-19. And they’re right to do so.

Table of Contents


Chatbots have become extremely versatile and sophisticated in the past few years. Much of this is owed to the breakthroughs in Artificial Intelligence. No longer just marketing props for companies wishing to display themselves as innovative and ‘next-gen’ —these tools are now providing answers to customer queries, making restaurant reservations, and directing visitors to human agents. Customers too have taken a liking to their virtual robot helpers.How Chatbots Help Businesses Find Customer Insights- Appy Pie“Chatbots are important because you won’t feel stupid asking important questions,” says Norwegian Professor Petter Bae Brandtzaeg. “Sometimes talking to someone can be a bit intimidating. Talking to a chatbot makes that a lot easier!”But their use goes beyond customer service.

Chatbots as a Source of Customer Insights

Other than guiding customers in their purchase journey, chatbots can provide significant customer insight to businesses. Recording and analyzing conversations becomes much easier with a bot at the helm. Here are some ways chatbots help organizations gain important insights.

  1. Providing Context on Returning Customers

    2. Since it’s now well-established that people are more comfortable with chatbots. So, someone who clicks through to your website is likely to engage with the bot rather than silently browsing the site. Whenever these customers return, their previous activity is catalogued in your system. You can use their recorded conversation to truly understand what they need and give them an appropriate solution. Analyzing customer conversations will allow you to learn how each customer is progressing. Considering that each individual is unique, you can design different strategies to guide them towards conversion. Some customers are more interested in technical details while others are more concerned about the price. Chatbots will help you decide whether it makes sense to create a promo code strategy for those who consider your brand to be a bit expensive.

  2. Improving Customer Service through Real-Time Information

    3. The way customers interact and what conversation takes place on a chatbot can help companies design a potent customer service strategy. In many ways, it’s impossible to employ chatbots effectively without analyzing data that customers leave behind. So, the first use of insight delivered by chatbots is to improve chatbots and make them more intelligent and empathetic. Modern bots are continuously learning from their conversations with different customers. The data gathered is used to offer a better quality of support in future. For instance, if a chatbot is programmed to reply to questions such as “how do I add another profile to the list?”, it can recognize that “where do I add another profile?” means the same. It can use this information to give relevant answers to questions that have similar meanings but are phrased differently. By understanding customer behavior, it becomes possible to make the bot somewhat human. As you go deeper into the insights, the information gained can be further used to redesign customer service as a whole and make informed decisions in this space.

  3. Collecting Big Data to Build Authentic Profiles

    4. With the help of automated data collection, bots can help businesses accumulate refined Big Data, the like of which is unattainable through other tools. Since chatbots talk to customers directly and in real-time —they have an inherent advantage over third-party platforms such as social media sites. They give enterprises the ability to collect quality data from a single source rather than multiple sources across the web. Bots powered by Artificial Intelligence can automatically add data to customer profiles. They can even be programmed to aggressively ask questions so that more data is accumulated. With this data, you can segment consumers into different groups based on their tastes, behaviors, and preferences. You can better target these consumers through tailored offers, marketing discounts codes to some, and rewarding free prizes to others.

  4. Identifying Customer’s Pain Points

    5. While surveys and questionnaires are all good —they don’t provide detailed and actionable information of biggest customer concerns quite like chatbots. With chatbots, you can learn why those clicks aren’t converting and what is it that consumers find unappealing about your brand. AI-powered chatbots through neurolinguistics programming can categorize words that describe emotions. This way, businesses can understand the emotional perspective of consumers without analyzing the barrages of texts. After giving words numerical values, negative conversations can be separated from positive ones and be used to alleviate customer’s issues. Opportunities here are endless. The data can be used to not just design empathetic chatbots but also create a smooth customer journey.

  5. Understanding How Customers Communicate

    6. Examining conversations that take place in a chatbot through relevant metrics can help enterprises optimize their customer service. How many questions and answers are exchanged before a visitor is satisfied? How did the entire dialogue take place? The overall exchange of messages in a chat would help marketers identify some patterns. If the conversations are long, it does not reflect well on the bot. Customers and chatbots conversing for big durations may mean that the bot is having trouble understanding the user. That or the information user is providing is not sufficient enough. On the flip side, ultra-short exchanges could also be a troubling sign. The data generated by analyzing dialogue gives insight into the customer's goal and behavior towards your brand. It has uses beyond the improvement of the chatbot and could be used to design SOPs for social media communication as well.

Summing Up

Chatbots have come a long way. Much of it is owed to the recent strides in machine learning and artificial intelligence. Today, these tools aren’t just answering customer queries but also gathering critical data. Insights from chatbots can be used to engage the audience successfully. Initially, this data can improve the bot itself, making it more efficient and impactful. Beyond that, this information has the power to completely reshape the way a business functions. According to British Data Scientist Clive Humby; “Data is the new oil”. Enterprises that capitalize on this resource will be the big winners going forward.

You May Also Like:

Take a deeper dive into the digital ecosystem and start expanding your business with these helpful resources:

Related Articles

Abhinav Girdhar

Founder and CEO of Appy Pie

Most Popular Posts