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European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 05

May 2019

Available online: https://ejbss.org/ P a g e | 89

Chatbots: A New Era of Digital Marketing

Mr. Hitesh Tikyani,

Assistant professor,

Department of Management Studies,

Vivekananda Global University, Jaipur

E-mail: hitesh_tikyani@vgu.ac.in

Abstract

In today’s era, Digital Marketing is way ahead in comparison to other forms of

marketing. One of the reasons is the usage of data. By observing customer’s interests,

tastes, desires, etc. A lot of data is collected which allows marketers to take decisions

regarding target marketing. Suppose, if you are looking for some footwear products on

flipkart, the chances are that you will be seeing the ads of the same footwear products on

maximum websites which you are going to visit in days coming. Businesses get this hint

about your appeal towards their product and they chase you wherever and whatever you

visit on internet. This is digital marketing.

The revolution in technology has changed how marketers today connect with customers.

Social Media is one of the favourite platforms of marketers to interact with their

customers. The basic premise is every person who is using internet, he or she is easily

traceable on any social media platform. The idea is to be in audience faces more and

more. It’s simple, the closer business is to its customer, better are chances of selling its

products/services.

It also implies that business will spend less on marketing and this is where chatbot

assumes important role. The surge of Artificial Intelligence and chatbots has changed

how marketing is done. Marketers are using chatbots to study buyer’s journey,

understand behavior, and collect prospective buyer’s data so as to convince them. Most of

the leading businesses are now using chatbots to enhance their efficiency. From

Entertainment to Retail and from Information seeking to Navigation, chatbots are

everywhere.

Page 2 of 10

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 05

May 2019

Available online: https://ejbss.org/ P a g e | 90

Keywords: Digital Marketing, Chatbot, Business, Internet, Social Media

Introduction

The world of Internet has given rise to tremendous opportunities in digital marketing for

businesses. Businesses can easily share their products/services online but can also gain

new clients. The data transmitted through digital marketing is speedy and effortless which

supports the business in tremendous manner. Big corporations like Google, Amazon, uber

and Ebay, unheard of twenty five years ago, are now key players. Companies have

realised the importance of creating and maintaining digital relationship with current and

prospective customers.

The marketing of products/services using digital tactics and channels is known as digital

marketing. Digital technologies like social media, smartphones, smart products, Artificial

Intelligence, etc. all have transformed consumers’ lives.

Concept of Chatbots

The concept of chatbots is not new. It was introduced around 1960s. The concept became

popular recently. A chatbot is an artificial intelligence or computer program which

interacts with a user in natural language through apps, social media, website or through

phones. Chatbots are designed to stimulate how a user will behave in conversation. The

best feature of chatbots is that it becomes intelligent and smarter by learning from past

interactions. Chatbots answer to queries in real time using pre-programmed responses.

The engaging nature of instant messaging apps has paved way for chatbots which

converse with website viewers for specific query or product knowledge. The rise in use of

chatbots is for a simple reason, chatbots reply to a query, any time and any place.

Five Cs of Chatbots:

1. Consistency

Inconsistency is a routine flaw of humans. There are hot and cold periods. This problem

Page 3 of 10

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 05

May 2019

Available online: https://ejbss.org/ P a g e | 91

does not arise in case of machines. They can be programmed to work any length of time

in a particular way. Human error is eliminated in case of chatbots as they are powered by

Artificial Intelligence. Chatbots make customer management easier. As new data is fed

into system, Chatbots become more intelligent and helpful.

2. Context Driver

Background information is always helpful in dealing with customers real time. Through a

form, Chatbots are able to get details like age, sex, gender, location, occupation, etc.

Through this information, Chatbots are able to create personalized messages that create a

positive impact on customer.

3. Conversational

Replication is an area where chatbots are ahead. They can work on same process again

and again with perfection, which is difficult for humans. Where humans fail, machines

come to rescue. Chatbots become intelligent overtime as more and more conversations

take place. Chatbots can be trained to all types of communications which can lead to

increased lead conversions and improved customer services.

4. Compatible

Chatbots are present in the bottom right corner of apps and websites always available for

customer services. They can perform a number of functions as they are highly flexible.

Lead generation, Customer engagem, ent, sales operations, Customer service, etc.

functions can be perfomed with relative ease.

5. Cost Effective

A business has to only bear a onetime cost of developing a chatbot. Chatbots are cheaper

as compared to other alternatives. Chatbots are a profitable investment as they can be

employed to variety of purposes.

History of Chatbots

Chatbots are growing in popularity day by day and almost 80% of businesses are

expected to use chatbots by 2020. The technology has become popular in recent times,

but the history has been longer. One of the first chatbots, ELIZA, was developed at MIT