Lesson 3

Chatbot analytics and optimization strategies

The Conversational Marketing Masterclass

Chatbot analytics and the right optimization strategy are essential for making your conversational marketing chatbot effective. Analyzing the performance of your chatbot will help you optimize for better results. However, it can also help you discover new opportunities for your business.

A good optimization campaign separates mediocre chatbots from those that become truly successful. Your goal with analyzing your chatbot is to get the maximum possible benefit with the smallest possible amount of effort and recourse. By conducting continuous optimization, you’ll be able to create a better customer experience while in the meantime improving your overall results.

If optimizing chatbots was easy, everyone would be doing it. The gap between companies using chatbot analytics effectively and those who are just ‘giving it a try’ suggests that there’s still plenty of opportunities for most marketers to improve their conversational marketing chatbots.

What we will cover in Lesson 3

Chatbot analytics: what are the key metrics?

Before we dive into how you can optimize your conversational marketing chatbot let’s have a look at the metrics that are important for analyzing your performance. Let’s start off by concluding that there are hundreds of metrics you can analyze and improve to increase the performance of your chatbot. However, if having analyzing hundreds of chatbots over the past years we found the top metrics you want to track for your website chatbot. Depending on the goals of your chatbot you will want to track some metrics more than others. However, the bottom line is that tracking certain metrics is crucial and will help you optimize in a more effective way.

Revenue attribution

Revenue attribution is the process of matching customer sales to your chatbot interactions. This will give you an understanding of the effectiveness of your chatbot.

An example of how you can track revenue attribution of your chatbot is to integrate it within Google Analytics. You can do this in several ways.

1. Add a google  Tracker

Some solutions will offer you the possibility to add a Google or Facebook analytics tracker into your chatbot.

Chatbot integration Google Analytics

2.  Setup goals in google analytics.

4 Google Analytics Goal Types That Are Critical To Your Business
 
 

Goal completion ratio

This metric enables you to measure the success rate of a given action performed through your chatbot, for example, clicking on a CTA button or link, moving to a live demo, filling out a form, proceeding to make a purchase, etc. However, it can only be applied to clearly identified actions for which customized indicators have been created.

How do you measure your goal completion ratio?

Step 1: define your chatbot goals (this can be more than one). You can ask yourself the question: When will I be happy? 

If you have several goals always try to prioritize which goals are most important to you.

Step 2: Analyze what percentage completes your goals. If you have several goals it will help to have a cake diagram to have insight into this figure. 

Open ratio

The open ratio is the number of users that have started a conversation. This number gives insight into the effectiveness of your prompts (like a welcome message or your ad for a landing page chatbot).

 

Interaction ratio

 

The interaction ratio measures the average number of messages exchanged per conversation / per user. This metric is very important as it will give you insights on the effeciteness of your conversation flow.

 

The bounce rate

Bounce rate

The Bounce Rate corresponds to the volume of users that start a conversation (voluntary or initiated) but bounce (leave the interface) before they have an interaction. This is a very important metric as it determines the effectiveness of your opening message. However, it also gives indications of the effectiveness of your chatbot design (font and font size, layout, colors, etc.)

The Retention Rate

The Retention Rate refers to the number of users who have used the chatbot over several occasions within a given period. This indicator can be compared with the typical frequency of client contacts in your particular line of business. It will provide a good indication of your chatbot’s relevance and its level of acceptance among your users.

Retentionrate card by botanalytics.io

Optimization strategies: How to improve your conversational marketing chatbot?

Chatbot analytics: optimization strategies.
Conversational Marketing Chatbot Optimization

 Step 1: Define your success metrics that support your goals.

In Lesson 1 we discussed the importance to have conventional marketing goals and prioritize them. 

  • Did you create a chatbot for efficient customer support? to generate leads? Make appointments? Point your visitors to the right content? 
  • Are you offering users to switch from chatbot to live chat – and back to a chatbot?

All in all, your chatbot should be providing users with specific use cases. It’s important to understand why a user is engaging with your chatbot, and then build a process to determine if that goal was met. This becomes your “self-service” success metric.

 Step 2: Analyze your chatbot funnel.

Below is an example funnel. The funnel can be split up into more or fewer segments.
 

Awareness
How many people have seen your chatbot or welcome message?

Acquisition
How many people have clicked on the welcome message?

Optimization options:
Bring more traffic to the page, paid advertising, SEO, content marketing, email etc.

Activation
How many people have started interacting with the chatbot?

Optimization options:
Welcome message, positioning of the bot and the image used,

 
Optimization strategies: Chatbot funnel
 

Conversion
Here you analyze how many people converted or completed the goals you set with your chatbot.

Retention
Here you analyze how many users come back to the chat.

Step 3: Find the bottleneck

This next step is easier than you think. 

You can have a look at the percentage that survives the gap to the next step in your funnel. If you’re not a math-magician, you can easily divide the number of step 2 with the number of step 1, and then divide step 3 by step 2, etc.

If you do this for all steps, you’ll see which percentage is the lowest. Congratulations, this is your bottleneck!

Most chatbot providers will supply you with information on the bottleneck.

Optimization strategies Bottleneck chatbot funnel

 Step 4: Find the reason why

At this step, it’s important to analyze why your conversational marketing chatbot is not performing.

Example bottleneck why’s.

Awareness

There isn’t enough traffic on page where you chatbot is active.

Acquisition:
There is no welcome message
There is no synergy between welcome message and opening message.
The chatbot needs to be initiated.
The avatar is not compelling.

Activation
The user doesnt find an option that solves his or her need.
The opening message is boring.

Live conversation
There is no option to a live conversation
It is not possible for the user to see and speak to someone

Conversion
The script is too long.
The bot is not able to ask the user for help.

 

Step 5: Create experiments and start optimizing your conversations.

In step 4 you found the reason why your chatbot wasn’t performing. In step 5 it’s all about creating experiments you can run to improve the bottleneck you are facing.

Example experiments:

Awareness:

Bring more traffic to the page where your chatbot is active by using google ads.

Acquisition:
Create a compelling welcome message.
Use movement to trigger attention.

Activation
Use Emoji’s and Gifs.

Live Conversation

Offer synergy between bot and human chat.
Offer video and messaging options.

Conversion

Ask for the e-mail address/phone number earlier in the funnel.
Link to the product pages
Offer a carrousel option where you showcase several products/services.

 

Chatbot analytics: Analyze your collected conversation data to spot business oppertunities

You can use chatbot analytics for more than improving the performance of your chatbot. It also means analyzing your collected conversation data to spot business opportunities.

  • What are the suggestions my customers are giving for my business?
  • What are the complaints about my product and or services?
  • Why are they leaving the chatbot when we discuss the pricing? 
The input customers give to your chatbot will help you develop a better understanding of where opportunities lie for your business.
Chatbot analytics: business oppertuntites.

Chatbot analytics tools

Below you’ll find a list of tools we recommend for your chatbot and conversational marketing analytics.

Botanalytics
Google analytics