How Are Chatbots Used in Digital Marketing? An Introduction


Essay, 2019

11 Pages, Grade: 89%

Anonymous


Excerpt

Contents

1. Introduction
1.1 Background of Research
1.2 Objectives, Research Questions, and Limitations
1.3 Research Methodology and Collection of Data

2. Review of Literature
2.1 Chatbots
2.2 Chatbot Evolution
2.3 Typologies of Chatbots
2.3.1 Scripted chatbots
2.3.2 Social Messaging chatbots
2.3.3 Action/service chatbots
2.3.4 Natural language Processing (NLP) chatbots
2.3.5 Context Enabled Chatbots
2.4 Chatbot Business Marketing
2.5 Customer demands of chatbots
2.5.1 Chatbot contents
2.5.2 Users chatbot awareness

3. Wiredelta (A Case Company)
3.1 Wiredelta Chatbot

4. Benefits of chatbot marketing

5. Limitations/Challenges of Chatbot Marketing

6. Conclusion

References

1. Introduction

This chapter of the paper aims to communicate the research topic to the reader and to familiarize the reader to the terms that will be made manifest in this study.

1.1 Background of Research

With proper organization, communicating with clients is a necessity for the growth and development of businesses or companies. A conversation with a customer or potential customer can give a company insight about present situations of the market, its competitions, and the impending future. This scenario is plausible because customers have the capacity of possessing different perspective of organizations that offer similar products in the market. Customers have a wide range of information because they have dealt with similar goods or services including other brands that are operating in different areas in prior times. Communicating with a customer can reinforce product loyalty while increasing the attractiveness of the brand to prospective customers (Oleksak, 2005).

Communication in marketing is a process included in marketing that aids a business, or a company to engage with its target population to pursue their objectives. Many tools can be employed for company-client communication, which includes, direct marketing, public relations, advertising, personal selling, and sales promotion (Kurilchik, 2017). However, the commonly used method is the added-value approach. When information or messages are generated, they are delivered through one of the two or both types of communication channels, namely, traditional media, which consists of (print ads, radio, the television, etc.), and digital media particularly the internet (Fill & Jamieson, 2011).

Over a decade ago, digital marketing has developed with tremendous speed and still developing with multiple channels of information dissipation (such as instant messaging, websites, social network, and e-mail) to target audience. Additionally, digital marketing readily provides information about brands and companies on the internet where existing and prospective customers go to gain knowledge about a brand of interest. There exists a maximum possibility for businesses to tailor messages and offers efficiently and quickly to connect with customers (Fill & Jamieson, 2011).

Currently, chatbots as a channel are replacing the use of social media in digital marketing. This is shown in the increasing use of Cortana and Siri that are forms of chatbots found on Windows and Apple devices respectively (Shawar & Atwell, 2007). Considering the emotions of customers, chatbots can be used to create predefined promotional information that is conveyed to potential customers. Therefore, chatbots as a digital marketing channel can be used successfully in marketing (Kurilchik, 2017).

1.2 Objectives, Research Questions, and Limitations

The first objective of this research study is to help businesses understand the use of chatbots as a promotional tool for communication.

The main research question is: How should businesses set up chatbots and use it to impact the way marketing is done?

The sub-questions are: What are the "types of content" users would like to see during their interactions with chatbots?

What are the roles a chatbot can play in a company?

1.3 Research Methodology and Collection of Data

Considering the objective and topic of this research paper, the research approach is inductive, and for complete exhaustion of literature in this research, qualitative analysis is used.

2. Review of Literature

The rapid increase in the deployment of "artificial intelligence" AI, has transformed the business scene permanently. Customers regularly interact with automated devices that help them serve their needs themselves (Pfund, 2018). Chatbots play essential roles in the business marketing landscape and other fields. This chapter inductively reviews all the qualitative data used for this research paper to reach a credible conclusion.

2.1 Chatbots

"Chatbot" as a word was coined from two English words; "chat" and "robot." It describes a computer program that is designed to instigate and converse with users through chat (Weißensteiner, 2018). (Active conversations). According to the Oxford English Dictionary, a chatbot is a programme designed to stimulate conversations with human users, especially over the internet. It is a computer agent designed to actively interact with human correspondents (Beilby, Zakos, & McLaughlin, 2014).

2.2 Chatbot Evolution

In 1966, Joseph Weizenbaum created the first conversational proxy named "ELIZA." It came into existence. ELIZA was a computer application that imitated psychiatrist and rephrased the input given by a user through fundamental natural language processing methods (Weizenbaum, 1966). The program was relatively simple; however, it successfully performed the task and convinced users of its capabilities (Peters, 2018). Decades later, new chatbots fashioned after Eliza came into existence with minor additions to their functionalities, such as emotional management and the synthesis of emotions. In 2001, ActiveBuddy, Inc. developed a colloquial agent called SmaterChild that operated in MSN and AOL Messenger. SmaterChild was tasked with providing instant access weather forecast, news, and sports results (Peters, 2018). It was linked to and sourced its data from a database with detailed information to users.

In 2006, IBM developed a conversational agent for winning "Jeopardy"-an American television show, through Watsons AI project, which has had a developmental status since 2006. The bot had a limitation of answering only one-liner questions and could not engage in a practical conversation with humans.

In 2010, virtual assistance such as Amazon's Alexa, Microsoft's Cortana, Apple's Siri (Schonfeld, 2010), Google Assistant came into existence. The inception of these virtual assistants introduced conversational concepts and goal-oriented conversations.

2.3 Typologies of Chatbots

In recent years, chatbots are prevalent in technology systems over traditional mobile and computer application with their ability to instantiate skilled conversations (Gurwani, 2018). Chatbot programming technology is dependent on the task or the target population of a business. This chapter will briefly discuss the chatbot spectrum (the types and field of application).

2.3.1 Scripted chatbots

Scripted or quick reply chatbots are those with predefined sets of answers to particular questions (Gurwani, 2018).

2.3.2 Social Messaging chatbots

This is the kind of chatbot is embedded in social messaging platforms. Users chat with these bots as they do with friends (Gurwani, 2018). These chatbots are found in Telegram and Slack for example.

2.3.3 Action/service chatbots

This is a kind of chatbot that requires data or action from the user to render a service. These kinds of bots are found in the aviation industry.

2.3.4 Natural language Processing (NLP) chatbots

These chatbots employ the AI technology (Natural language processing) to ascertain user input to an intent, either voice or text (Gurwani, 2018).

2.3.5 Context Enabled Chatbots

These chatbots are programmed through machine learning and use artificial intelligence to recall past conversations that transpired with specific users to learn and develop over time. For example, Alexa and Cortana. Context Enabled bots learn with their experiences and mature in time (Gurwani, 2018).

2.4 Chatbot Business Marketing

In recent years, communication between customers and brands has rapidly increased. Technology has induced a dramatic change in customer experience. Clients prefer autonomy in the case of customer care and self-service. They want to be able to obtain answers and services on the go without any form of interaction with brand representatives. Due to the new trend in the business landscape, companies modify their users' experience to self-serving in order to provide enhanced customer service. Companies are making provision for easy and instant communication with their clients; in purchase, and other functions. The messaging platforms have chat functions that engage the customer and provide needs such as ordering goods without delay (Accenture Mobility, 2017).

What are chatbots benefits to clients and businesses? There are three main constructive aspects of chatbots which include service extension, stress reduction, and instant response. Formerly, contacting a company takes time and too much effort. A customer will have to call the company through a hotline or write an e-mail to the company and await their response over days, even weeks. The introduction of chatbots can eliminate the pain of these tedious procedures involved in making contact with companies.

Additionally, chatbots are available every time of the day and provide immediate response (Kurilchik, 2017). There is also a possibility to link a chatbot with other business services (Accenture Mobility, 2017); for example, an airliner chatbot can be connected with Taxify and Airbnb. Chatbots augment customer-brand relationship. Businesses have developed an interest in chatbot technology (AI), and companies have started implementing it (Kurilchik, 2017).

2.5 Customer demands of chatbots

Most clients have the notion that the use of chatbots eases the stress that is attached to communicating with companies because of the instant response they receive about their inquiries. Self-care users want the availability of chatbots in many platforms that support messenger (Kurilchik, 2017), in order to make multiple-choice available when they use these platforms. Consequently, to meet customers' needs and prospects, brands should consider implementing this tool(s) on major platforms to start communicating with individuals anywhere, anytime and possibly in multiple languages (Accenture Mobility, 2017).

2.5.1 Chatbot contents

Brand users want chatbots to be well-designed and efficient. They should be able to offer easy solutions to simple questions which are entered. They should also have short and comprehensive information and history of the company and brand. Customers want information about a company's modus operandi and services (Kurilchik, 2017). Chatbots may not necessarily have deep human-like conversations, but they should be able to respond accurately to important questions when asked (Ubisend, 2017).

2.5.2 Users chatbot awareness

Although there is an increasing rise on the popularity and use of chatbots, there is also a need to raise awareness to sensitize individuals that have no idea about the program and teach them how to utilize the opportunity.

3. Wiredelta (A Case Company)

In 2012, Denker and Delarbre established Wiredelta. Wirdelta's mission is to support internet entrepreneurs with affordable websites, mobile application, and other development services of high quality (Wiredelta, 2016).

Wiredelta has branch offices in four cities around the world; namely: Coimbatore and Mysore, Paris, India, and Medellin, with its headquarters in Copenhagen (Wiredelta, 2016). Wiredelta has Three departments which include: Wiredelta Institute: this is the in-house educational organization that aims at providing effective training in programming, modern web technologies, and development (Wiredelta, 2016). Wiredelta Agency: is the department that deals with client projects and customer communication (Wiredelta, 2016). At last Wiredelta Platform: The Wiredelta platform is an on open source content management system (CMS) (In other words, people use the platform to create their website). Smith (2017), argued that Wiredelta platform controls 26 percent of all websites created globally.

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Details

Title
How Are Chatbots Used in Digital Marketing? An Introduction
College
Cologne Business School Köln
Grade
89%
Year
2019
Pages
11
Catalog Number
V512647
ISBN (eBook)
9783346108715
ISBN (Book)
9783346108722
Language
English
Tags
chatbots, used, digital, marketing, introduction
Quote paper
Anonymous, 2019, How Are Chatbots Used in Digital Marketing? An Introduction, Munich, GRIN Verlag, https://www.grin.com/document/512647

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