Updated on July 3, 2024

Cover picture of a blog by Kommunicate shows Instagram business chat.

Instagram, more than just a platform for memes and cat videos, is a thriving business hub.

With over 2 billion monthly active users as of 2024, the app has been growing rapidly and could be a serious avenue for you to reach your customers.

Bar chart showing the number of Instagram users worldwide from 2020 to 2025 in billions, with user numbers steadily increasing each year.
Data courtesy of Statista, as visualized by Kommunicate

And the way to the customer’s hearts and, eventually, their wallets? The answer to that is Instagram Business Chat.

What is Instagram Business Chat?

Instagram Business Chat is a messaging feature that businesses can use to communicate with their customers on Instagram. Designed specifically for businesses, It involves strategies including quick replies, automation, and access to Instagram inbox messaging analytics.

Instagram is popular because it provides a unique and engaging user experience that caters to customers’ love for visual content. There are compelling reasons why your business must consider starting out with Business chat on Instagram, and we will start with what is probably the most important: increasing customer engagement.

In this blog post, we will present 10 compelling reasons to use Business chat on Instagram, backed by real-life success stories of companies that have leveraged the platform.

Here are those 10 reasons, listed in no particular order.

  1. Increase in Customer Engagement
  2. Direct Communication
  3. Personalized Interactions
  4. Targeted Marketing
  5. Ease of Lead Generation
  6. Prompt Customer Support
  7. Competitive Advantage
  8. Analytics
  9. Automation and Efficiency
  10. Economical

We will start with what Instagram Business Chat is.

1. Increase in Customer Engagement

Being present on Instagram means businesses can build stronger connections and foster meaningful customer interactions. With Instagram Business Chat, businesses can communicate directly with their customers on a frequently used platform.

Instagram Business Chat allows businesses to share engaging content directly with their audience, such as exclusive offers and product demos. By responding promptly to queries and addressing customer concerns, businesses can create a sense of connection and demonstrate their commitment to excellent customer service.

Sephora, for instance, is a cosmetics brand that uses Instagram Business Chat

to offer beauty tips and share product tutorials, increasing customer engagement.

Sephora engaging with customers through Instagram Business Chat, providing personalized recommendations and support on mobile.
Sephora uses Instagram Business Chat for Customer Engagement Image credit

2. Direct Communication Channel

With Instagram Business Chat, there is a direct line of communication between businesses and their customers. Customers don’t have to navigate to multiple channels, and they can initiate conversations, provide feedback, or ask questions directly.

Customers today expect convenience and real-time engagement,  which will foster trust and enhance the overall customer experience. In fact, this survey from Comm100, among a group of 16-24-year-olds, suggests that quick responses from a service team can drastically improve their customer experience.

One popular business that has completely embraced Direct Communication via Instagram is the popular food delivery app DoorDash. DoorDash has integrated an Instagram Business Chat to handle order inquiries, provide updates on delivery status, and offer personalized recommendations based on customer preference and order history.

Picture shows DoorDash - Food Delivery App being downloaded on mobile phone.
 Credit – GettyImages/Eric Baradat

3. Personalized Interactions

One key advantage of chatbots is that they can provide quick responses at scale, which means they can handle multiple conversations simultaneously. Chatbots, especially those powered by Generative AI, can also learn from their past interactions, thereby continually improving their ability to provide support.

Instagram chatbots can analyze user data and conversation history to tailor their responses and recommendations. These personalized interactions mean the overall customer experience is more engaging and efficient, which in turn increases customer satisfaction and loyalty.

Whole Foods, an American multinational supermarket chain, has integrated a chatbot which helps users find recipes that are based on dietary restrictions, ingredients on hand, or specific meal types.

A smartphone screen displaying a chat with Whole Foods Market's verified Instagram account. The user has initiated a conversation. Whole Foods Market's profile shows it has 30L followers and 1.4T posts.
Credit – Whole Foods Market

4. Targeted Marketing

When you integrate an Instagram business chatbot, your company gets the opportunity to deliver personalized content and offers to specific customer content segments. Companies can leverage user data and interaction history to tailor their messages according to individual interests, which ultimately leads to more engagement.

These Instagram chatbots can segment audiences based on demographics, interests, and purchase history, allowing businesses to send highly relevant messages and product recommendations.

A good example of an Instagram chatbot being put to use to do targeted marketing is ASOS’s bot, which gives style advice and product suggestions based on user-defined preferences and previous purchases.

5. Ease of Lead Generation

One key advantage of Instagram business bots is that they provide a low-friction way of engaging potential customers and gathering valuable information. The Instagram interface is familiar to many younger demographics, and these chatbots can initiate conversations, ask qualifying questions, and even guide users through a sales funnel through this interface.

Chatbots make the whole conversation feel natural and less intrusive than filling out a form, and they are available to users 24/7. Automated Instagram business bots can thus efficiently gather lead information and qualify prospects, all the while providing value to the user.

A company that efficiently uses Instagram business bots for lead generation is HelloFresh. It captures leads by offering recipe ideas and guiding users to subscribe to its meal kit service.

Experience seamless customer support with HelloFresh on Instagram. The screenshot showcases an engaging chat interface where users can easily interact and get their queries addressed. Elevate your customer service with instant communication.
Credit – Hellofresh

6. Prompt Customer Support

The whole point of a chatbot is to reduce the dependency on human agents while improving customer experience. One way to do this is via Instagram business bots, which will help provide rapid, efficient support. When businesses provide immediate assistance, they increase customer satisfaction and loyalty.

Instagram business bots are powerful business tools. They can answer a wide range of inquiries, from product information to basic troubleshooting, without delay. Instant support eliminates wait times, ensures that the customer gets consistent answers, and ensures that only the most complex inquiries are handed over to human agents.

Mastercard’s Instagram business bot, for instance, gives instant support to all card-related queries, transition disputes, and balance checks. This means that the accessibility of financial services is enhanced.

A smartphone screen displaying a chat with Mastercard's verified Instagram account. The user has initiated a conversation with the message 'Hi,' followed by 'I had a query.' Mastercard responds, addressing the user by name and asking how they can assist. The profile shows Mastercard has 2.2 million followers and 991 posts.
Credit – Mastercard

7. Competitive Advantage

Standing out from the competition is what every business aspires to these days, and an Instagram business bot is a sure-shot way of achieving this. If you have read so far, you know that Instagram bots help offer superior customer service, give customers personalized experiences, and efficient operations.

Traditional methods of supporting customers or marketing are just not enough, and with Instagram business bots, businesses position themselves as unique and customer-centric.

Nike, a sportswear and apparel brand known for its innovative marketing campaigns, uses an Instagram business bot that gives personalized recommendations and workout tips. This differentiates Nike through added value and engagement.

8. Analytics

Bot analytics provide deep insights into customer behavior and preferences, and using this data, businesses can make informed decisions. Companies can refine their marketing strategies and improve product offerings, enhancing overall customer experience.

Detailed conversation logs will help you understand customer needs and track popular inquiries, which you can use to inform product development.  They also help you identify peak usage times, which will help businesses allocate resources accordingly. 

KLM’s Instagram business bot, for example, measures customer satisfaction with different aspects of their service, allowing them to identify pain points in the customer journey.

9. Automation and Efficiency

Companies can streamline interactions, reduce costs and improve their customer interactions using Instagram business bots. These bots can handle a large volume of repetitive tasks and inquiries simultaneously, which will free up human agents to do the more complex work.

Automation reduces response time, minimizes the chances of human error, and enables businesses to scale customer service functions without a proportional increase in staff.

Spotify is an excellent example of a business using an Instagram business bot to automate playlist creation and music recommendation based on user preferences. This enhances user experience without the need to curate music manually

10. Economical to use an Instagram Business Bot

Using Instagram business bots, companies can achieve cost-effective customer engagement and support. They can handle an enormous number of customer service queries at a fraction of the cost of traditional, customer-staffed operations.

With Instagram Business Bots, you need to spend less money to train the support staff. There are also decreased overhead expenses since you no longer need physical call centers. There is also improved efficiency, allowing for more interactions per dollar spent.

Amtrack, for instance, has an Instagram chatbot called Julie that handles over 5 million customer inquiries annually. The chatbot has saved the company approximately $1 million in customer service costs.

A smartphone screen displaying a chat with Amtrak verified Instagram account. The user has initiated a conversation. Amtrak profile shows it has 2.9L followers and 4.5T posts.
Credit – Amtrak

Parting Words…

 Instagram business chat provides a powerful suite of benefits that can change customer engagement. It gives a competitive edge in today’s business landscape, from personalized interactions and targeted marketing to efficient lead generation and accurate customer support. This digital landscape will continue to evolve, and adopting Instagram chatbots is no longer just an option but a strategic necessity.

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Devashish Mamgain

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