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QUESTION
Read the Chatbot Renault Case for Feb 2019, attached, and respond to the three questions given. See the rubric for grading info on the Case Study. This fits into the Course Learning outcome, below Chatbot case
- Evaluate the effectiveness of an existing product marketing strategy
This is more like a case study than just responding to questions, so be sure to read the case example. We hope you will find this relevant in today’s very connected marketplace. If you have never used a chatbot, this may be a good time to learn more about them.
Case Study
Case Study on Renault Italy and Chatbots
Renault Italy/Publicis
Chatbots and Messenger
Reaching younger tech-savvy audiences who connect with chatbots is a trend moving globally. Renault Italy has begun selling a limited edition SUV automobile via chatbots on Facebook Messenger.
‘Tokyo Stories’ is an anime-style series on Instagram, somewhere between fiction and reality. Consumers first watch the story and then may connect with the characters on Facebook Messenger. The series borrows from the traditional conventions of Japanese cartoon or comic-style that was developed in the late 19th century. Viewers watch characters in this drama and then can connect to the personalities via chatbots using artificial intelligence.
What kind of results did they achieve? They sold 3 cars in first 24 hours. Watch the video with the recap.
Publicis, a global advertising firm, claims that Renault was the first to sell cars on chatbots in October 2018. Automobiles are high priced products, and require a lot of in depth knowledge, so this has been a challenge for some brands to overcome with this limitation on chatbots. One reason it is a challenge is that 40-50% of people prefer human interaction (CGS, enterprise software developer, 2018) found. The depth of knowledge is limited, so far, with chatbots. However, this case shows how using Instagram Stories, a high priced item has been introduced and sold via Messenger using artificial intelligence.
“We wanted to concentrate discussion on social media in order to intercept new audiences that are less keen to come and visit a showroom,” Elisabeth Leriche, advertising and CRM manager at Renault Italy, told The Drum. “But of course, if selling through chatbot reveals itself effective, why not extend the operation and create a profile for all our dealers? We’ve been accelerating our process to create real-time marketing to answer our consumer needs, so it’s definitely part of a more global digital strategy.”
This is a new marketing growth area, fueled by artificial intelligence. Chatbots are expected to bring $11 billion in combined cost savings for the retail, banking and healthcare business sectors by 2023, which the global chatbot market forecast to grow by 24.43% over the next four years. These and other chatbots like the ones offered on Facebook Messenger will need to meet customer demands for technology, to keep up with the forecasts.
To learn more about chatbots and several example firms which are using them successfully, here is more.
Assignment: Read the following questions and respond in your 1-2 page response.
Case Questions:
- How are chatbots changing the way that consumers connect with brands?
- Describe some of the marketing challenges with high priced items when it comes to using chatbots?
- Create a strategy for a university to use a chatbot to attract students. What would be important to include in the campaign elements?
Sources:
Bluestein, A. (2018) Renault and Publicis Italia Partner, Sell Car via Chatbot. The Drum, Oct 12, 2018
https://www.thedrum.com/news/2018/10/12/renault-and-publicis-italia-partner-sell-car-via-chatbot
Rittenhouse, L. (2018) Renault Italy is selling a limited edition SUV through a Facebook Messenger chatbot. Adweek, Oct. 11, 2018. https://www.adweek.com/programmatic/renault-italy-is-selling-a-limited-edition-suv-through-a-facebook-messenger-chatbot/
Williams, R. (2018) Renault Italy taps Messenger chatbot to drive SUV sales. Mobile Marketer. Oct 15, 2018. https://www.mobilemarketer.com/news/renault-italy-taps-messenger-chatbot-to-drive-suv-sales/539635/
ANSWER
Case Study on Renault Italy and Chatbots
How Are Chatbots Changing The Way That Consumers Connect With Brands?
Chatbots are changing the most significant aspect of businesses: communication with customers. Moreover, companies can now understand their customers by letting them explore what the business is offering. For instance, in the case study, Renault Italy allows customers to watch the story; first, they then can choose to proceed with contacting the characters used to showcase the cars on messenger. This strategy is known to overtake the idea of physical selling, where new audiences follow social media discussions before settling on the idea of visiting the showroom.
Additionally, the idea of a personalized service delivery strategy can be realized because of the engagement on messenger. Furthermore, unlike how businesses have to invest a large amount of money in marketing their products, ensuring great customer service, and following up on internal processes, chatbots are ensuring businesses save money and use it for other development purposes (Kaczorowska-Spychalska, 2019). Still, the customers won’t spend time waiting in line as the companies will be keen to monitor conversations as they flow. Questions and answers are made easier with chatbots through the chat window instead of emails, telephone or responses from the business owner.
Describe Some Of The Marketing Challenges With High Priced Items When It Comes To Using Chatbots?
Overdependence on chatbots may not yield any results because the target consumers, who might be from the highest social class, do not prefer using social media. Sometimes, it can just be about the comfortability of using chatbots to purchase high-value products.
Secondly, understanding consumers and their intention for high-priced items are challenging. Some consumers may just want to get in-depth information on the items but not purchase the product. Therefore, chatbots may lack in-depth knowledge about the product, especially if it is that expensive (Rajaobelina et al., 2021). Thus, the marketing efforts may not yield the expected results because they do not have the superpowers those word of mouth has on the audience.
Anything connected to the internet is vulnerable to malware and attacks from hackers. Therefore, chatbots may be used to exploit consumers if compromised. This will be a big business crisis as they will have to investigate and maybe offer refunds. Sometimes, it can be used to obtain ransom from the company owning the chatbots through ransomware that uses cryptocurrency, which is often untraceable.
The issue of language barrier and automation of messages can be challenging. Vernacular problems arising from users with a different first language might affect marketing efforts, therefore, calling for translation services, which may lead to a loss of meaning.
Create A Strategy For A University To Use A Chatbot To Attract Students. What Would Be Important To Include In The Campaign Elements?
After choosing a low-code bot, program the bot with automated responses. Manually upload a list of relevant responses that can match the school. For instance, add responses related to applications, requirements for acceptance, and what programs the school offers. Do not forget to add what benefits the student is entitled to once they join the school or college.
Secondly, have a real-life representative to manage the chatbot. This is called manning; the staff will answer clients’ queries quickly and efficiently. Using both will help attend to a large number of aspiring students at all times (Benotti, Martínez, and Schapachnik, 2014). Important to include in the campaign are as follows; an introduction to the bot, guidelines on how to search for information, and apply if they need to. Use conversational language with an emotional appeal. At the same time, you have set the appropriate tone of voice and personalization. Consider interruptions and misunderstandings and how to solve them.
References
Benotti, L., Martínez, M. C., & Schapachnik, F. (2014, June). Engaging High School Students Using Chatbots. In Proceedings of the 2014 Conference on Innovation & Technology in Computer Science Education (Pp. 63-68). https://Doi.Org/10.1145/2591708.2591728
Kaczorowska-Spychalska, D. (2019). Chatbots in Marketing. Management, 23(1). https://doi.org/10.2478/manment-2019-0015
Rajaobelina, L., Prom Tep, S., Arcand, M., & Ricard, L. (2021). Creepiness: Its Antecedents and Impact on Loyalty When Interacting with A Chatbot. Psychology & Marketing, 38(12), 2339-2356. https://Doi.Org/10.1002/Mar.21548
