Back in time, consumers had to visit local shops or brands in search of the latest product.

But now, the tides have changed, and consumers want brands to be the ones hitting their doorstep instead.

Modern customers demand that you proactively ‘baby’ them through their entire purchase and post-purchase journey.

Interestingly, this personalized customer-relationship methodology is now a huge index for measuring success within industries – whether B2B or B2C.

Businesses must adopt the conversational marketing approach to build quality customer relationships.  

What Is Conversational Marketing?

Conversational marketing means bringing potential buyers into one-on-one contact with your business.

It is an approach where you make genuine efforts to satisfy your consumers through 24/7 communication.

You primarily respond to their queries or assist them in making relevant decisions.

Note that communication is not the only hallmark of conversational marketing.

You must also implement several feedback mechanisms and unearth new ideas that will simplify your customer’s journey.

Overall, your customers must receive a personalized and dynamic brand experience.

Speaking of a credible fact, 79% of businesses that used conversational marketing earned more than their expected revenue in 2022.

5 Ways Conversational Marketing Will Impact Your Business In 2023

Businesses using conversational marketing often go outside their comfort zone to please consumers.

A perfect example is Sephora, a beauty brand famous for creating retail makeup and skin care products.

Sephora communicated with their customers and discovered that most people do not place an order because they’re unsure of which product looks best on them.

As a result, this beauty brand introduced a unique AR component – Sephora virtual artist – in their messenger chatbot.

With the virtual functionality, consumers could try out different makeup products on their faces by uploading selfies and other facial images.

The outcome? Sephora’s conversion rate went up by 11%.

Aside from an increased conversion rate, conversational marketing can significantly influence your business in the next quarter of 2023. But let’s start with the negative impact first.

Hiked Competition to Please Consumers

An analysis by BCG reveals that big industries find it more challenging to stay in the top 3 market positions.

This is not because there are tons of new businesses created every day.

Primarily, consumers have started to switch over to brands that can offer them a more personalized experience.

Businesses like Google, Amazon, and Apple have nailed their stand because they keep rolling out new personalized features.

Similar to the Sephora example used above, these tech hegemons make sure their users have access to more functionalities in a simplified manner.

For example, Google can respond to queries with almost 99% accuracy based on users’ actions.

Coupled with other customer-centric approaches, this search engine giant dominates a larger percentage of the internet, while Bing only has a 2.47% share.

But what does conversational marketing have to do with this?

First, to ensure potential leads remain loyal to your brand, you must ensure they can’t get the same customer experience you provide elsewhere.

Once there is another brand that listens and responds more accurately, consumers will immediately switch over and dump your services.

This process of “adopt and dump” eventually triggers a competitive chain where every business, which includes thousands of your competitors, strives to outdo whatever you can offer.

Not so bad, actually – intense competition will push your brand to become its best. With that said, let’s explore the positive impacts below.

Increased ROI and Sales Conversion

Intense business competition sounds scary, but what’s more alarming is if your business has no reasonable turnaround.

Sales and conversion are vital to keeping your brand running.

Otherwise, even giants like Apple might fall out of their position or go bankrupt.

This is where conversational marketing comes in. Sales will automatically roll in when consumers find your communication and personalization strategy effective.

Don’t forget that customers use their trust in a brand as the measuring scale for determining if they will make a purchase.

The lower your trust score is, the lower the possibility of converting cold leads into hot buyers.

Higher Retention Rate, Low Acquisition Cost

One of the most worrying concerns of businesses is retention rate and acquisition cost.

Attract, interest, consideration, and the decision stage are all crucial parts of your sales funnel. But after purchase, you can’t just let customers go.

As previously mentioned, people’s trust in your brand is a factor that shapes their decision – whether to stay or leave.

Brands nowadays do everything possible to retain the same customer for as long as possible.

And the longer a customer is retained, the higher their lifetime value.

Moreover, the cost of retaining a consumer is much cheaper than the expense of acquiring a new one.

When you properly utilize conversational marketing, your business will find it easy to retain existing customers and less need to spend on acquiring new ones.

Customers Might Become Brand Advocators

With conversational marketing, your customers will become brand advocators or mouthpieces for your products. This means you will spend less on marketing in 2023.

It’s simple logic: when you develop a quality relationship with customers, they will trust you enough to recommend and broadcast your brand to others.

Be informed that referred customers are 37% more likely to stay with your brand.

Swift Collection of Feedback for Upgrades

While you might think this is not important in 2023, feedback is actually a hallmark your business shouldn’t ignore.

Feedback is essential for making quick upgrades that will benefit your customers.

With constant reports and satisfaction surveys, your products and services will evolve to be the best in the market.

Conclusion

There are tons of marketing strategies, but only a few are needed for your business to survive in 2023.

With conversational marketing, your product will experience a higher retention rate, lower acquisition cost, and a positive reputation.

Don’t forget to implement tools like live chat, chatbots, WhatsApp, and other social marketing tools to rocket your ROI and build a loyal customer base.