Why Businesses Need Chatbots for Marketing
Businesses are using chatbots to handle customer questions, recommend products, and even close sales — without needing a human 24/7. They make marketing faster, easier, and more efficient.
A good chatbot can answer questions instantly, guide visitors through a website, and keep customers engaged. It saves time, improves customer experience, and boosts sales. But are chatbots really that effective? And how can they help businesses grow?
Let’s get into why they’re becoming a must-have in marketing.
Benefits of Using Chatbots in Marketing
Here are some benefits.
Helping Shoppers Choose with Confidence
When it comes to high-consideration purchases like jewelry, customers often have a lot of questions — and want quick, helpful answers even after hours. That’s where chatbots shine.
“At Alan Bick Engagement Rings, we’ve seen firsthand how a chatbot can simplify the buying process,” says Matt Bick, Director of Alan Bick Engagement Rings. “Whether it’s helping someone understand ring sizing, material options, or financing plans, the chatbot acts like a 24/7 concierge. It doesn’t replace our team — it helps us show up when people are ready to make a decision.”
This kind of always-available support can ease buyer hesitation and guide users to the right product at just the right time.
24/7 Customer Support
Customers expect quick answers, but businesses can’t always have someone available to respond. Chatbots solve this by offering instant support anytime, day or night.
Whether a customer has a question at 2 AM or during peak hours, a chatbot can handle it. This keeps customers happy and reduces frustration from long wait times.
Lead Generation and Qualification
Not every visitor on a website is ready to buy. Some are just looking, while others need a little push. Chatbots can collect basic details — like names, emails, and what the customer is interested in — and sort them into different categories.
This is especially useful for service-based businesses that rely on fast lead capture. “When someone lands on our site asking if we buy homes in their zip code, we need to respond quickly,” says Dan Close, Founder and CEO of BuyingHomes.com. “Our chatbot helps us qualify sellers in seconds — which can be the difference between closing a deal and losing one.”
By identifying strong leads early, chatbots save time for sales teams and boost conversion rates without extra effort.
Personalized User Experience
People like it when businesses remember their preferences. Chatbots can do this by tracking past interactions and suggesting products or services based on what a customer has looked at before. For example, if someone visits a clothing website and browses jackets, a chatbot can later recommend similar styles. This personal touch makes customers more likely to buy.
Faster Response Times
Nobody likes waiting for a reply, especially when they have a simple question.
“Unlike human support agents who can handle only a few chats at a time, chatbots can respond instantly to multiple people at once. This means no waiting in long queues, and customers get the information they need right away, leading to higher engagement and more conversions.”
Cost Savings for Businesses
Hiring and training a full customer support team is expensive. Chatbots reduce this cost by handling routine questions and tasks, allowing human employees to focus on more complex issues.
Businesses can offer great customer service without needing to hire extra staff, making chatbots a smart and budget-friendly solution.
Chatbots don’t replace your team — they support it. They handle the basics so your people can focus on what really matters — solving problems and building customer relationships.
Best Use Cases for Chatbots in Marketing
Here are the best use cases for chatbots in marketing.
E-commerce
Shopping online should be easy, but customers often get stuck looking for the right product, understanding prices, or figuring out delivery options. A chatbot acts like a virtual shopping assistant, guiding users to the best products based on their preferences.
For example, if a customer visits an online store looking for running shoes, a chatbot can ask about size, style, and budget, then suggest the best options. It can also answer common questions like "Do you have this in blue?" or "What’s the return policy?"
Zhixin Zhang, Marketing Director at Mailgo.ai, highlights, “Some e-commerce brands even use chatbots to process orders, track deliveries, and handle refunds—without making the customer wait for a human. This makes shopping smoother and encourages people to complete their purchases instead of leaving the website without buying.”
Lead Nurturing
Not every visitor to a website is ready to buy. Some are just looking, while others need more time to decide. Chatbots can help by gathering customer details and keeping them engaged until they’re ready to make a purchase.
Businesses also use chatbots to collect emails or phone numbers, making it easy to follow up later. Instead of letting visitors leave without taking action, chatbots keep the conversation going and increase the chances of turning leads into paying customers.
Customer Support
Customers expect fast answers. If they have to wait on hold or send an email and wait hours for a reply, they might ta hi ke their business elsewhere. Chatbots fix this by providing instant support for common questions.
For example, instead of calling a company to ask, “Where’s my order?” a customer can just type the question into a chatbot and get an instant tracking update. Other common chatbot responses include store hours, refund policies, and product details.
This not only improves customer satisfaction but also reduces the workload for human support teams. Instead of handling repetitive questions all day, employees can focus on more complex issues that require a personal touch.
Social Media Engagement
Social media is a major customer service channel. Many people send direct messages on Facebook, Instagram, or Twitter expecting quick responses. Chatbots help brands keep up with these messages without needing a team to respond 24/7.
“Some businesses also use chatbots for promotions. A restaurant could set up a chatbot to send daily specials to customers who message them. A travel company could use one to suggest vacation deals based on the user’s location. These quick, automated responses keep customers engaged and boost brand loyalty.
Event Promotions
Planning an event takes a lot of effort, and getting people to attend is one of the biggest challenges. Chatbots make it easier by providing event details, answering FAQs, and even handling registrations.
For example, if a company is hosting a webinar, a chatbot can send reminders like, "Our live session starts in 30 minutes! Click here to join." It can also answer common questions, such as:
- "How do I register?"
- "What’s the event schedule?"
- "Will there be a replay?"
This saves time for businesses while making sure attendees have all the information they need. Some brands also use chatbots to send follow-up messages after an event, keeping the audience engaged and turning attendees into future customers.
Challenges and Limitations of Chatbots in Marketing
Here are some common issues that can affect chatbot performance:
Lack of Human Touch
No matter how advanced a chatbot is, it can’t fully replace human interactions. People appreciate real conversations, especially when dealing with emotions, complaints, or complex issues.
Let’s say if a frustrated customer is trying to resolve a complaint and the chatbot keeps giving automated responses, it can make things worse. Many people prefer speaking to a real person when they have serious concerns. This is why businesses must ensure their chatbot allows users to connect with a human when needed.
Limited Understanding of Complex Questions
Chatbots work well for answering simple and common questions, but when a customer asks something unusual, they can struggle. If a chatbot doesn’t understand the request, it might provide an irrelevant or incorrect response, frustrating the user.
Like, if a chatbot is programmed to answer “What are your store hours?” it might not know how to handle a question like “Do you have a vegan-friendly product in stock?” without specific programming. This can lead to customer dissatisfaction.
Customer Frustration with Repetitive Responses
Many chatbots follow a script, meaning they can only provide a set number of responses. If a customer’s question doesn’t match those options, they might get stuck in a loop of repeated answers.
For example, if a chatbot keeps replying with “Sorry, I didn’t understand that. Can you rephrase?” users will get annoyed and leave. Businesses need to make sure their chatbot is regularly updated to recognize more variations of customer questions.
Integration Issues with Existing Systems
For a chatbot to work effectively, it needs to connect with other systems like customer databases, CRM tools, and e-commerce platforms. If the chatbot isn’t properly integrated, it may give outdated information or fail to complete tasks like processing orders or retrieving customer history.
If a chatbot is supposed to track orders but isn’t linked to the company’s database, it won’t be able to provide accurate updates. This can lead to customer frustration and lost trust.
Can’t Handle Emotional or Sensitive Conversations
Some customer interactions require emotional intelligence, such as handling complaints, refunds, or service failures. A chatbot can respond with pre-written messages, but it can’t truly understand a customer’s frustration.
For example, if a customer is upset about a lost package and the chatbot just repeats, “We’re sorry for the inconvenience,” it can feel cold and unhelpful. In such cases, a human representative is needed to show genuine concern and resolve the issue properly.
Security and Privacy Risks
Chatbots collect customer data to provide better responses, but if businesses don’t handle this data securely, it could lead to privacy issues. Customers may be uncomfortable sharing personal details with an automated system, especially if they aren’t sure how their information is being used.
If a chatbot asks for credit card details or sensitive information without proper security measures, it could lead to data breaches. Businesses need to ensure their chatbots follow data protection laws and reassure users that their information is safe.
Final Thoughts
Chatbots make marketing faster, easier, and more efficient. They help businesses answer questions, guide customers, and even boost sales without needing a human 24/7. But they’re not perfect. A chatbot can’t replace real conversations, and if it’s not set up well, it can frustrate customers instead of helping them.
The key is balance. Businesses should use chatbots for quick tasks while keeping human support available for complex issues. When used the right way, chatbots can improve customer experience, save time, and make marketing more effective. The future is smart automation — but human touch still matters.