Demystifying conversational experience: The ultimate guide to everything conversational

Deep dive into the conversational ecosystem and learn what you need to create the ultimate conversational experiences.

Content Marketing Team Lead

Zoha Tapia

Content Marketing Team Lead

If you’re looking to take your CX to the next level, you must have heard about the latest buzzword – conversational experience and all the terms associated with it, from conversational commerce, marketing, support, AI, UI – basically conversational everything.

But what was a buzzword is now a reality. A reality that forward-looking businesses need to embrace to stay ahead of the competition and take their CX a notch higher. So, what is conversational experience and all the terms associated with it?

This blog will guide you through the entire universe of conversational experience and how you can achieve it.

What is conversational experience?

Conversational experience is the intersection of conversational tools, machine learning and artificial intelligence (AI) to enable a more personalized, friction-free, and intelligent customer journey.

Conversations are an integral part of the customer experience, regardless of industry. Innovative companies have been investing in technologies that can actively understand and guide customers to solutions.

Deliver personalized experiences by leveraging data insights

As customers become more accustomed to conversational interfaces like messaging apps, chatbots are becoming an integral part of the digital user journey. That’s where conversational user experience comes in.

What is conversational user experience (CUX)?

Conversational user experience (CUX) is when a customer has a natural or human-like interaction with a chatbot or some type of artificial intelligence. It removes the robotic and impersonal aspects of speaking with a chatbot and gives users a more conversational experience. 

Companies need to ensure that these technologies are sophisticated enough to minimize human involvement in conversations when possible and streamline processes for both the customer and business – such as eliminating large number of manual requests and reducing response time – while still providing excellent service. Additionally, companies must ensure that marketing initiatives remain relevant by leveraging data insights gathered from conversations to deliver personalized experiences both online and offline.

5 steps to building conversational experiences

To start building a conversational experience there are five key things you need to do:

1. Understand your customers’ frustrations

The first step toward creating an effective conversational experience is understanding your customer’s pain points. Figure out what triggers them most and how customers may be confused or misinformed when they reach out to your agents or chatbot. Understanding the common complaints that your customers face can help you create a plan for better communication between them and your support team.

2. Build natural language processing capabilities

Natural language processing (NLP) refers to the ability of machines to understand human speech in its natural form – without being explicitly programmed with rules. NLP capabilities allow conversations between customers and automated systems like chatbots to feel more natural and familiar, as though they were talking with a human agent rather than a computer program. The use of state-of-the-art NLP technology also ensures that customers don’t experience any misunderstandings during their conversations with chatbots or automated systems. Basically, helping chatbots talk human.

3. Invest in automation technologies

Automation technologies can help streamline customer service and marketing processes by automating campaign workflows and reducing manual administrative tasks for agents, allowing them to spend more time providing customized solutions for each individual query. There are various types of automation available such as virtual assistants, live chats, smart suggestion boxes, marketing automation etc., which all enhance the way companies interact with their customers during a conversation-based interaction process. Technology like AI integrated with NLP, powered with a customer data platform that tracks and analyzes your customers behavior can even go as far as suggesting personalized product recommendations tailored specifically for each individual customer!

4. Seek out human interaction when necessary

No matter how sophisticated technology has become, certain issues still require special attention from humans. If any queries need additional clarification or specialized knowledge which chatbots cannot provide, then it’s always best to assign those concerns to a team member. Live agents can provide detailed answers directly instead of feeding off pre-programmed messages provided by automated services alone. In addition, agents are empowered with the customers’ conversation history on every channel, meaning they don’t have to start the conversation from scratch and be hyper-contextualized. This helps build trust with your users while also ensuring they get satisfactory answers every time they reach out!

5. Develop measurable metrics for improvement

Finally, no conversational experience strategy is complete without metrics – you should seek ways to measure success to improve over time. By monitoring feedback coming into contact centers and tracking key performance indicators around customer satisfaction, response times, campaign performance or task completions, businesses will be able to continually adjust their strategies accordingly to remain competitive.

The pillars of conversational experience

However, to build an impactful conversational experience, you need the foundations in place. Afterall, behind every lead, sale, conversion, and renewal is a conversation – and for that you need the three founding pillars:

  1. A conversational communications platform: The one-stop technology shop to make all your conversational experiences come to life. Think of it like the state-of-the-art coffee machine that will brew the perfect Espresso, American, Cappuccino or coffee of your choice.
  2. Conversational AI: According to Merriam-Webster, AI is the capability of a machine to imitate intelligent human behavior. Conversational AI is the more advanced version of AI which takes machine learning and natural language processing to recognize not just individual words but the deeper context of queries.
  3. Conversational channels: Chat apps are the go-to channels for any meaningful conversation. Why? Because they provide the flexibility to have two-way communications and be easily integrated with the right conversational communications platform and conversational AI.
Three pillars of conversational experience

Let’s go a bit deeper into each of these.

Conversational communication platform

A conversational communication platform is that single medium from where marketing, customer service and sales pros can create all-round experiences that drive revenue. It has all you need in one place:

  • A customer data platform to unify and build customer profiles that can help in orchestrating personalized customer journeys
  • A customer engagement solution that helps personalize and automate marketing campaigns across any channel
  • A chatbot building platform that helps build intelligent and intuitive chatbots that can be used for support, lead generation and cross-selling
  • A contact center solution for the seamless transfer to live agents for complex queries or when the human touch is needed
  • Digital channels to create conversational customer journeys from onboarding and engaging to support and selling
Conversational communication platform

In essence, the platform leverages the above technologies to drive real-time conversations between businesses and customers throughout the entire customer journey. They help scale personalized interactions along with allowing customers to have conversations on their own terms, over the channels they love.

With the right conversational communication platform, you can conduct:

  • Conversational marketing to engage customers, understand their needs and intent, and check if there is an opportunity to up or cross sell
  • Conversational commerce to ensure customers can not only engage but also purchase or complete a transaction over their favorite channel without having to switch – delivering an innovative buying experience
  • Conversational support for optimum customer service through automated 24/7 chatbots and agents

Conversational AI

Conversational AI helps train and build chatbots, so they talk less bot and more human. It helps up the chatbots IQ and ability to not just formulate answers but take unstructured data in conversations or chats, understand the context, and provide the appropriate answer.

For example, one customer could be asking “can you help me with my coffee machine”, and another could ask, “can you tell me about your coffee machine”. A simple chatbot may not recognize the difference and may give a similar answer. However, an intelligent AI powered one would understand the difference and reply accordingly.

Conversational AI helps with:

  • Identifying intent
  • Training the chatbot to say the right things
  • Help in lead generations with recommendations
  • Provide customer support

Conversational channels

Now you have the platform and the AI technology but to deliver conversational experiences you need the right digital channels. Rich media channels that your customers are familiar with enable two-way conversations and allow you to deliver all the use cases required throughout the customer lifecycle. Just like the right coffee pods for your coffee machine.

And to integrate these channels into your marketing, sales and support you need a conversational communications platform that is also a CPaaS leader.

The widespread adoption of chat apps such as WhatsApp Business Platform, Viber, Messenger, Instagram, Google Business Messages and Apple Messaging for Business provides the potential to streamline your marketing, sales, and customer service from a single chat app – giving rise to conversational messaging.

These channels also enable you to get more from your ad spend by focusing on the right place for it – your customers smartphone.

By integrating conversations into the ad flow on Instagram, Facebook or digital ad, and even via Google or Apple search helps drive discovery and demand.

If a potential customer clicks on a product or service in one of your ads or on your social media news feed that interests them, they want a quick and easy answer. And you need to strike the iron while it’s hot and engage before they lose interest, get distracted, or decide to shop elsewhere.

They’ve already shown enough interest in your product to click, and now it’s your job to maximize that opportunity and nurture these ad or newsfeed leads – and that’s where conversational channels come in.

For example let’s say a customer clicks on one of your Instagram newsfeed to view a specific coffee blend. They can then be directed to a conversation over WhatsApp to help them make a purchase decision, add the product to their cart, and convert. They reach out with an inquiry, and you respond right away, helping move them through the funnel.

Conversational experiences via WhatsApp

Conversational experiences through the customer journey

Conversational experiences drive real business growth by building customer loyalty, boosting retention, and increasing revenue. It’s about engaging with customers with natural conversations at each point of the journey by simplifying interactions from marketing to support and everything in between. It’s about convenience for the consumer and simplifying the customer journey.

To deliver conversational experiences it’s important to map out the journey first. The conversational customer journey has four stages with each one covering marketing, sales, and support.

Phase 1: Discovery

In-site navigation

A potential customer is browsing the website searching for their favorite coffee flavors and starts interacting with a chatbot.

First tier support

The customer interacts with the chatbot to make inquiries about the coffee pods and the nearest available store. 

Lead generation

The customer shares their information with the chatbot, and details are automatically stored in the customer data platform. 

Phase 2: Consideration and purchase

Support front line sales

On seeing a special offer on certain coffee pods, the customer decides to make a purchase and checks out using a payment link within the chat window.

Loyalty program

The customer is then prompted to become a coffee loyalist and on signing up receives a personalized message and another special offer.   

Product showcase

With purchase history stored, the chatbot makes recommendations based on the pods bought previously and even shares information on a coffee machine.

Phase 3: Support and sales

Resolving orders

The customer realizes they have ordered the coffee pods to the wrong address and manages to change it with the help of the chatbot.

Seamless agent takeover

The customer wants more details before purchasing the coffee machine and is connected to the relevant agent within the same chat app.    

Engagement

It’s time for a restock, and based on their profile they are sent personalized promotional messages along with tips to maintain the coffee machine.

Phase 4: Delight and retain

Promotional campaigns

There is a coffee competition where the customer can win 100 pods. They interact with the chatbot to participate.

Re-engagement

It’s been a while since the customer has bought any pods. The chatbot re-engages with them with a promotional offer on their new range. 

Voice of the customer

After the last purchase, the chatbot contacts the customer to ask for feedback on the service and the coffee.

The conversational customer journey is also a great way to identify areas for personalization in messaging.

75%

of customers do not receive personalized messages

This is because customer data can be captured at different stages of the customer journey including personal details, preferences, shopping behavior and intent cues from conversations. All this can be leveraged and identified in developing a conversational journey.

To ensure the journey and chatbot are always on point, it’s important to invest in conversational design.

What is conversational design?

Conversational design is a UX discipline focusing on improving the conversations between people and machines, to make them more efficient and natural. This could be on a chat-app or even voice-enabled technologies like Siri or Alexa. It involves designing conversation flows where customers can ask questions and get detailed answers from the chatbot in the same way they would when speaking with a human being.

Conversational design techniques strive for quality interactions between your customer and chatbot, allowing for friction-free communication on both ends. This means providing clear instructions on what customers should do next when interacting with the chatbot. It also means factoring in all the different ways someone might say something when trying to communicate their needs. This helps them get the desired result without having to go through multiple steps or provide redundant information.

Benefits of conversational design

The main benefit of using conversational design is its efficiency as it helps reduce complexity while maintaining accuracy and speed. This helps create better conversational experiences since customers don’t have to jump through hoops to figure out what they need and can access something quickly on their fingertips.

Additionally, conversation designs often yield more accurate results than traditional search engines because natural language processing can help provide context which helps avoid misinterpretations from customers like misunderstanding technical jargon.

Finally, when done well conversational design can even improve customer loyalty and potential ease-of-use resulting from reduced complexity during interactions regardless of if it’s a human being or a chatbot.

Conversation design has been around for quite some time now but continues to gain traction as technology advances and AI becomes increasingly commonplace in our lives. By understanding how this experience works best, businesses can reap the full potential for their customers by giving them an enhanced user experience, leading to them staying connected longer, increasing loyalty and ultimately customer satisfaction.

How to implement conversational experience use cases

Now that you have the foundations set with the right technology and an idea as to how to design your customer journey, it’s time to look at the key use cases that would help deliver a conversational experience.

// Conversational marketing

As customers, we all get inundated with promotional content on various channels but for brands just sending that one email or text isn’t enough. To build interest and loyalty, it’s important to engage meaningfully and be able to demonstrate ROI on marketing efforts. In a nutshell convert marketing campaigns into customer lifetime value management campaigns. And that’s where conversational marketing comes in.

What is conversational marketing

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

At Infobip, we created conversational marketing solutions to help brands and marketing agencies deliver valuable campaigns that drive loyalty and revenue.

So, instead of waiting for sales or support to jump in, now you can seamlessly engage with customers and direct them to the point of sale in the same chat app.

There are four main areas of conversational marketing:

Engage

That’s the first step when you draw your potential customer in with a conversation starter. And instead of just sending a promotion, make it a two-way conversation, compelling them to find out more.

Understand

Once engaged, leave your company mascot – the chatbot – to ask the right questions, so you can collect the right data and understand your customer better.

Recommend

With all this rich data on hand, continue the conversation with personalized messages and recommendations to make sure customers carry on with the conversation.

Re-engage

After they have purchased and become a loyal customer or have gone off the radar, you can draw them back in the conversation with a personalized re-engagement message.

Benefits of conversational marketing

Here are the biggest benefits of using conversational marketing:

  • Increase engagement
  • Learn and understand loads about your customer
  • Convert more leads and increase ROI on campaigns
  • Increase conversion rates
  • Shorten the purchase journey

Top conversational marketing use cases

// Conversational commerce

Your customers demand for immediacy and convenience has grown exponentially. Having to move from a website to a chat app and then back to a website for payment is too much of a hassle. What they are looking for is an easy way to communicate and purchase, on their terms and their choice of platform.

That’s where conversational commerce comes in. The ability to carry on your marketing or support conversation all the way to a transaction within the single chat app of your customers’ choice. So, no moving between channels, apps or even devices.

What is conversational commerce?

Conversational commerce is a term used to describe using chat and other communication tools such as chat apps, chatbots, and virtual assistants. It is an advanced form of customer communication that uses AI technology to support consumer relationships. Through conversational commerce, customers can interact with products and services and initiate transactions in a conversational manner.

It empowers customers to use natural language processing (NLP) capabilities to converse with brands through text message or voice input on any mobile device to provide them answers on product queries in real time.

By engaging in conversations with customers, businesses learn more about them. This allows them to create predictive models that anticipate customer needs and enable personalized experiences based on those insights. Through this system, consumers are provided tailored information that’s relevant to their inquiries quickly and easily instead of having a static website page they must trawl through.

There are three areas of conversational commerce:

Connect and respond:

When a connection is made with the customer, it’s time to respond in a timely manner with answers that are personalized and compel the customer to take the conversation further.

Drive and persuade:

Share recommendations and the product catalog within the chat app to drive them to the point of purchase.

Qualify and influence:

For customers who already have a rich profile on your data platform, qualify them for certain offers and products to influence their buying habits.

Benefits of conversational commerce

Conversational commerce helps you tear down any friction in communication and give potential customers a direct, real-time connection to your product or service. Giving them the power to shop when and where convenient with the assistance of intelligent chatbots. And in return for your business that means:

  • Increased customer engagement and satisfaction
  • Improved response times and quicker path to purchase
  • Increased sales and revenue
  • Improved data collection
  • Minimal friction in the customer journey

Top conversational commerce use cases

// Conversational support

Support being conversational does sound like an appealing concept, especially if you’re offering customers a preferred channel for them to get a quick response, provide answers that are scalable, diminish the frustration cycle and mimic the way people communicate in everyday life.

Thanks to technology that’s now possible – conversational support. Not the regular call center answer of “sorry you had to go through this” or “you’re in queue” or “our lines are busy”. You get the gist.

So, enter chat apps and conversational support technology. One is the most popular way to communicate with friends and family, the chances are even your grandparents are on it, and the other empowers businesses to support customers as friends.

What is conversational support?

Conversational support is the use of artificial intelligence to enable more human-like interactions between businesses and customers. By leveraging AI, companies can provide personalized customer service and offer tailored solutions.

Conversational support leverages sophisticated technology such as natural language processing (NLP) and machine learning to enable customers to communicate with chatbots in a human way. Chatbots are now much better at interpreting and responding to human inputs so that agents don’t need to type complicated queries into a search bar. Instead, they can simply ask simple questions or make statements regarding customer problems, which AI-driven chatbots can interpret quickly and meaningfully. This eliminates the need for manual data entry or complex search queries and makes customer service interactions faster and more seamless.

There are three important components to conversational support:

Listen:

Train your chatbot to be a good listener and understand the query, at the same time make sure the conversation history is updated in case an agent is needed the customer doesn’t need to repeat themselves.

Respond:

Be proactive and respond in real-time. No one likes waiting, especially on chat apps. Be prompt and always there.

Resolve:


Understand the problem and find a quick resolution, along with knowing the right time to pass the conversation on to a human agent. This will keep your customer happy and eventually loyal.

Benefits of conversational support

  • Increased efficiency with customers getting answers quickly without needing to wait on hold or answer lengthy surveys or forms
  • Saving time for both customers and customer service reps, increasing overall efficiency in customer service operations.
  • Improved customer experience as the support is less robotic and makes customers feel more appreciated as their individual needs are heard and handled expediently.
  • Increase customer satisfaction and loyalty
  • Reduction of manual tasks with automation and seamless transfer to agents when required

Top conversational support use cases

Example of conversational support

Infobip’s conversational experience solution

The future of digital interactions is conversational, channel-agnostic, and hyper-personalized. And just as customers expect frictionless end-to-end journeys on channels of their choice —businesses seek similar experiences in their efforts to deliver on that expectation. That’s where Infobip comes in.

The future of digital interactions is now and with our conversational experience solution it’s possible over any chat app of your customers’ choice.

With us, businesses can cover all the touchpoints across the journey on a channel of their customers’ choice from a single intuitive interface, equipped with a customer engagement solution, chatbot building platform, and cloud contact center solution—all underpinned by a customer data platform.

From simple use cases to the most complex conversational scenarios, all can be built over your customers’ favorite digital channels. And being a leading CPaaS provider we make sure they’re simple to integrate into your communication stack. Just plug in and play.

Stay ahead of the messaging evolution curve with our cutting-edge conversational platform.

Start your conversational journey today

Contact an expert
Mar 8th, 2023
16 min read
Content Marketing Team Lead

Zoha Tapia

Content Marketing Team Lead