How conversational AI can elevate marketing agencies

Discover how conversational AI can elevate your digital marketing agency and help your clients deliver greater ROI.

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) who are looking to differentiate themselves from the competition need to ensure their strategy includes one important element: Conversational AI.

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 $13.9 billion in 2025.

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.

Benefits of integrating conversational AI and digital 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, what was once only a part of fiction is now a standing reality.

Moving beyond the realms of science fiction, conversational AI is now a complete digital marketing solution capable of automating repetitive tasks, improving efficiency, and enhancing each stage of the customer journey.

More specifically, AI-powered chatbots are used to increase the Return on Investment (ROI) on marketing campaigns.

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)

Applications of conversational AI in digital marketing

Conversational AI is set to revolutionize digital marketing through various applications and use case cases. Take a look:

  • 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.
  • 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.
  • Lead generation: Leverage Natural Language Processing (NLP) to engage customers using personalized content over the right channels and conversational apps. This would ultimately help businesses reach the right audience, deliver more efficient sales cycles, and drive revenue.

How can conversational AI transform 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.

Digital marketing agencies can build their own brand character or virtual assistant with emotions and personality using generative AI to deliver personalized conversational experiences at every step of the customer journey.

Here are a few ways in which conversational AI is transforming digital marketing:

Improving targeting and relevancy 

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

Automating processes and enhancing efficiency 

Conversational automation allows brands 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.

Customer stickiness and 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).

Enabling personalization 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.

Delivering accurate insights and predictions 

Conversational AI allows marketers 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.

Creating opportunities with new channels and innovative strategies 

Conversational AI enables brands to connect instantly with customers across different channels like WhatsApp Business Platform, Instagram, Live 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 Bsmart, a performance marketing agency is helping their clients deliver conversational experiences at scale.

Conversational marketing and quality interactions 

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? Interactive two-way messaging.

Today, 71% of customers expect businesses to have a real-time communication channel. Conversational marketing provides that and much more. Let’s find out what it’s all about.

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

It uses a combination of human conversations, automated messaging, and AI to provide useful, authentic, and engaging experiences at the right time and on the right channel. This allows businesses to gather useful data and learn more about their customers through their behavior and chat history, ultimately enhancing the quality of interactions, removing friction, and increasing satisfaction.

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.

Conversational AI can be used to deliver quality interactions by:

  • Quickly resolving simple queries with AI chatbots
  • Encouraging customers to select appropriate products and services through triggered communication
  • Increase conversion rates
  • Improving overall customer experience

Challenges of incorporating conversational AI into digital marketing agencies 

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. And that’s where Infobip comes in.

Partnering with a conversational marketing technology partner like Infobip can help you cover all the touchpoints across the 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 being a leading CPaaS provider, 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 latest CX trends, and technological advancements to ultimately help your clients deliver superior conversational experiences.

Need for a conversational marketing technology partner 

Digital marketing agencies who are looking to elevate their business should adopt innovative strategies in order to attract new business, stay relevant, and remain ahead of the competition. As the digital marketing landscape is quickly evolving, keeping up with the progress is becoming very challenging.

Partnering with the right technology provider enables digital marketing agencies to keep up with the latest trends, innovations and technologies, monetize revenues, boost customer engagement, improve lead generation, and enhance scalability.

So instead of investing in outsourced services and skillsets, partnering with Infobip will help you overcome your business challenges. You will be able to access a broad range of technical expertise that will help your business in:

  • overcoming challenges
  • reducing costs
  • increasing operational efficiency
  • implementing conversational marketing strategies

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.  

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

Razan Saleh

Senior Content Marketing Specialist