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6 Data-Driven Benefits of Instagram Chatbots

6 Data-Driven Benefits of Instagram Chatbots

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So, we have some pretty exciting news. Instagram chatbots are officially a thing.

Back in June, Facebook announced at the F8 Developer Conference that it would be expanding its Messenger API for Instagram. Initially, this expansion was solely available to just a handful of developers. However, since then, Facebook has rolled out the expansion to business accounts with 1,000-100,000 followers.

Now that the API has been expanded, businesses can integrate Instagram DMs with their CRM platforms and other preferred applications and tools to improve social media marketing strategies.

Naturally, this new update has caused many to focus on new ways to enhance their customer experiences through messenger automation tools such as chatbots. So, if you’re interested in learning the benefits to be had by these nifty little DM automation tools, then you’ve come to the right place.

How old are customers who expect a response in one hour or less?

1. Boosted customer response times

As of August 2021, Instagram’s platform has an astounding 1 billion+ users. That’s a lot of opportunity. But it can also be a bit overwhelming for SMBs looking to maintain a truly competitive level of customer service in order to stand out.

Did you know that one of the biggest pain points for 30.5% of consumers is a lack of responsiveness for brands on social media? Furthermore, 36.4% of individuals surveyed by Drift felt frustration over their inability to get answers to simple questions and business information in a prompt manner.

According to SproutSocial, it takes an average of 10 hours for brands to respond to a consumer. While most are happy to hit the 24-hour mark, the truth remains that in many instances, this response time translates to a sub-par customer experience and an opportunity missed. This is especially the case in today’s modern, fast-paced society which thrives on instant gratification.

Now, imagine a world where you’re able to absorb every single interaction of every single prospect, not only quickly, but at the perfect time.

This is where Instagram chatbots truly shine. They’re able to provide answers to your consumers’ most pressing questions right at the moment when they’re most engaged and in need of your assistance.

What customers think makes a brand best in class on social

2. A cost-effective solution to improved customer experiences

In order to achieve the same level of productivity, a business would pretty much need an entire department of customer service representatives working around the clock. That takes a significant amount of human capital and financial resources that many SMBs simply don’t have.

However, a recent report from IBM found that leveraging chatbots can save businesses as much as 30% when it comes to costs associated with customer support.

But, that’s not all. Businesses can also realize significant savings when it comes to human capital.

Did you know that chatbots can handle 68.9% of chats from start to finish? Integrating a chatbot into your customer support workflow can not only save you cold, hard cash, it can also free your staff up from simple, repetitive tasks so that they can focus on more pressing business matters.

And last but not least – Instagram chatbots don’t get sick, they don’t call out, they don’t quit, and they don’t need sleep. They work 24/7. While we don’t recommend working your staff like machines, we do recommend harnessing the power of AI and machine learning to help you achieve your goals. In fact, over 40% of consumers like chatbots because they can assist them outside of regular business hours. With the use of chatbots you’re quite literally able to generate leads, cultivate prospects, offer support, and make money –all while you sleep.

Instagram DM Automation Chatbots

3. Automation with a personal touch

One of the most significant sources of reservation when it comes to leveraging chatbots is a concern over personalization. But, it’s important to bear in mind that automation, when implemented correctly, doesn’t necessarily correlate with a decrease in quality of processes or experiences.

This is because chatbots are powerful tools which can be used to improve personalization. Many are able to segment your audiences based on their profiles and even anticipate personalized methods of engagement based around your consumers’ unique preferences and levels of interest.

The key to this lies in the setup.

Take time to think critically about your consumers’ biggest needs, desires, and pain points. Furthermore, it’s important to view the personalization process as cyclical rather than linear. Many chatbots come equipped with powerful data and analytics tools which can be used to further refine and personalize customer experiences.  

However, with this being said,  it’s important to note that every tactic should be used with a certain degree of measure. Chatbots aren’t designed to be an all-encompassing solution to customer service. Instead, view them as a tactic which is meant to augment your efforts versus replacing them.

For example, an effective approach would be to set up your chatbot to answer your most frequently asked questions, but then program it so that it passes the conversation on to a human representative when matters reach a certain level of complexity.

4. Streamlined payment processing

Did you know that you can program your chatbot to accept direct payments from customers within Instagram’s DMs?

While bill payments are a crucial part of the customer service journey, ultimately, it’s the numerous tiny interactions leading up to this stage which drive a consumer to invest in your business.

Fortunately, today’s chatbots have so much more to offer than customer service alone. Modern technology enables these nifty little programs to also drive conversions and even help close sales. In fact, a recent report by Drift found that 41.3% of consumers “use conversational marketing tools for purchases”. Believe it or not, this is over a two-fold increase since 2019 and the technology is only continuing to improve and expand.

Data-driven Chatbot Analytics

5. Data-driven insights

According to a recent survey conducted by SproutSocial, 90% of marketers agree that the data they receive from social enables them to stay ahead of their competition. Instagram chatbots are practically a gold mine for data and the insights they provide can help you refine and upgrade your social media strategy in ways which were previously unimaginable.

This is because chatbots log every single interaction with consumers and can collect user data so that it can be repurposed to improve everything from customer support to personalization, marketing, and re-targeting efforts.

Not only do you have access to consumer social profiles, but you can even program your chatbot to collect data such as names, emails, and other forms of contact information.

Chatbot data can additionally provide you with valuable insight into user needs and pain points, as well as their likes/dislikes and expectations of your brand. Data an insights from chatbots can also provide you with a deeper level of understanding of their behaviors, trends they’re interested in and which types of content resonate the most with them.

Ultimately, effective chatbot data can be used to help you sincerely get to know your customer base and to interact with them on a meaningful, personal, and truly impactful level.

If you've chatted with a chatbot, what were some positive aspects?

6. Lead generation

Let’s face it, lead generation is tough stuff. So tough in fact that a whopping 61% of marketers considered lead generation to be their most significant challenge. As a result, many often run into the business of spending as much as half or more of their annual budgets on lead generation tactics.

How many leads does your business generate in a month? Could your numbers use improving?

If so, you might be excited to find that 55% of businesses who use chatbots generate more high-quality leads.

This is primarily attributed to the automatic, real-time nature of chatbots. When you catch your prospects immediately in their most engaged state, they’re more likely to move forward in the customer journey and ultimately, to convert.

In fact, according to a recent 2019 study, your leads are 9x more likely to convert when you’re able to follow up within 5 minutes.

Furthermore, implementing Instagram chatbots is a great strategy for protecting your business against potential algorithm changes. Far too many companies have been successful on social media only to find themselves knocked down to square one due to a social media platform update. One reason chatbots are so successful is simply due to the sheer volume of DMs to businesses (leads) sent on a daily basis. As a result, leveraging an effective lead generating chatbot strategy can help your business diversify their overall social media strategy and thus become less susceptible to periodic (and potentially harmful) algorithm changes.


Instagram chatbots are an efficient, cost-effective solution to improving the customer experience and boosting your social media ROI. Instagram’s fresh new API expansion is ripe with opportunity for businesses ready to take the next step.

But where do you begin?

That’s where we come in.

Starting August 16, you can officially join our brand-new FREE 5-Day Build Your First IG DM Funnel Challenge. We provide step-by-step guidance on how you can develop and grow your first ever IG DM automation from the ground up. But, that’s not all – we’ll also provide insights and assistance on how you can implement this automation for your unique needs to generate real-world results in real time.  

And the best part? There’s absolutely no coding or experience required to get started!

Contact us today to learn more.

6 Data-Driven Benefits of Instagram Chatbots
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