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How Chatbots Can Boost Your Customer Retention Rate?

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Today the world is going toward digital transformation, and the pandemic has hastened it furthermore, with the greatest impact on enterprises. Businesses must consider their bottom line while also being concerned about maintaining customer loyalty.

This goal necessitates the development of efficient retention tactics to establish long-term relationships with customers. As a result, businesses are putting more emphasis on AI-based chatbots to boost consumer loyalty and profitability.

These chatbots are a technological breakthrough that has already become a part of human life. Moreover, they may be used for anything, including customer retention in businesses.

What are Chatbots?

Chatbots are mainly programming software based on artificial intelligence to interact with humans. They're made to intuitively engage with and respond to incoming signals, used to respond quickly to individual inquiries and messages on the internet.

Users communicate with the chatbots through a chat interface, which includes written and spoken content. Moreover, it becomes easy for the customer to communicate with the machine using familiar human terms.

Did you know? According to statista by 2025, the size of the Chatbot market is anticipated to reach around 1.25 billion USD.

How Chatbots is the right choice for Customer Retention?

As in business, customer satisfaction is the main goal; customers require attention, periodic acknowledgment, and brand confirmation. To achieve all of these, chatbots are considered the best mate now.

Imagine if a customer is browsing around your website; an automated chatbot can generate questions connected to items and service options.

"What are you seeking for today?"

can pull most of your customer's attention. Chatbots not only determine the objective of a customer's visit but also create a sense of personalization, which helps to build trust and encourages people to share details. This also encourage your customer activation by pushing them to the next steps of your funnel

Customer Retention Strategies by AI-based chatbots

24/7 Customer Support:

Providing thorough help for customer inquiries is one of the most effective ways to establish customer loyalty. Chatbots are a technique to provide customers with quick and accurate answers in less than a second and in real-time.

Chatbots are the primary means of communication between a company and its customers. It's one option; if you operate in an area with a lot of jargon, there's a good probability that people may call you or ask you a lot of questions. Well, here's where chatbots may help you: pre-loading chatbots with the most often asked questions will save you and your customers a lot of time.

Also, if you are worrying about your international business, chatbots can offer 24/7 support to overseas customers irrespective of time zone. In case of language barriers, chatbots can offer a helping hand with the ability to know 40+ languages.

Make Purchase Simpler

Existing consumers will return to your firm if purchases are simple, and you may generate good opportunities. Customers should be able to purchase products directly from the chat interface.

More importantly, you should always be striving to improve your chatbots and give your customers more options.

Let's take an example; you already know from a survey that one of your customers adores fantasy novels. Will you then ask them to return to your online store and browse and buy those books? Will you simply add a "Shop Now" button to the chat UI on its own?

Thanks to AI, companies can concentrate on the real issue at hand, which is selling and customer retention. Chatbots shorten the time it takes to find new customers.

By educating customers on product characteristics, comparisons, and how-to videos, chatbots make the buying experience easier and more interesting.

Customer Retention Through Multiple Channels

With the availability of multiple social media platforms, they leverage customers when communicating with brands to choose their preferred mode of communication.

Customers may now use chatbots to identify items and get answers to their questions through various channels. Omnichannel bots understand and maintain context thanks to machine learning and natural language processing, offering customers consistent and meaningful service across many channels.

Moreover, this type of all-encompassing experience helps to reduce costs and increase retention.

Multilingualism of chatbots

Everyone wants to interact with their first language, as the world has multiple languages. Furthermore, people place a higher value on brands that provide support in their native language than those that do not.

From a business point of view, you may make your chatbots more effective by programming them to speak multiple languages. Users can communicate with customers in their favorite language by deploying a multilingual chatbot.

Understanding regional variations and cultural intricacies might help businesses accelerate their translation efforts. Moreover, it results in a higher customer retention rate in a large portion.

Include chatbots in your customer loyalty program

The goal of creating a loyalty program is to bring your loyal customers even closer to you. Educate your chatbot to ask your customers for referrals.

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More importantly, offering discounts to customers who are the most loyal. The chatbot of your loyalty program must be capable of completing all of the tasks you request. So, even if your customer care representatives forget to advise customers about the latest price reductions.

You can program your chatbot to thank customers after completing a transaction by complimenting them. More importantly, thank them for their support and faith, as well as for their business and brand loyalty.

Ask for customer feedback with AI chatbots

Having positive client feedback is a priceless gem for any business.

Use AI chatbots to solicit feedback from customers, such as “How was your experience shopping with us?” or “What is our area of improvement?”.

You can get the feedback for your service they avail on your website. Moreover, this approach will allow you to understand your customer’s needs and help you improve it in order to retain them.

Make the content experience more personalized

These bots allow customers to get customized content features to get the content according to their needs. Businesses are constantly focusing on content marketing strategies through chatbots as they are very punctual and work as programmed.

Moreover, it's now a major part of their overall content marketing strategy. Organizations can appoint chatbots on their social media pages as well to interact with their audience. Moreover, it can also help in promoting the content and getting enough traffic effortlessly.

Sending a message clearly and concisely

Chatbots can also get people to spend more time on a website by boosting their interaction with it.

In other words, when critical communications are delivered flawlessly, the sales process is accelerated, which many businesses struggle with these days.

With chatbots, you will be able to communicate critical messages to your customers. Moreover, a CTA can also be assigned to keep the audience engaged.


Ultimately, customer retention is a very crucial part of every business in a competitive market. Moreover, it is the only way you can make sure that your business continues to scale every single day.

As evidenced by the above contributions of chatbots to boost customer retention rate, bots are the way of the future. Now is the time if you haven't included chatbots in your business with the help of a software development company.

Additionally, while you study the statistics, companies that have implemented AI chatbots are able to cut down the cost of operation by 30% and are predicted to cover almost 70% of the enterprises by the end of this year, 2022.

To go further, you can also read our series of articles on Marketing Automation With Chatbtos

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Written by
Muzammil K

Muzammil K is a passionate marketer & technology enthusiast who loves to share ideas and thoughts on technology & marketing. His experience enables him to offer the right services to businesses globally.

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