Why are Chatbots important for a business?

October 23, 2018

Successful technology businesses never stop innovating. Adoption of new technology has increased dramatically in the last decade. The predominant application of these innovations appear to be in; improved usability, lowered cost to serve and increased customer intimacy.  Knowing how to better communicate with customers and monetise these conversations requires deep analysis of the performance of all interactions and rapid deployment of incremental improvements based on what is learned from this data.
 
Given the key role that they can play in this, the global market of chatbots and Artificial Intelligence is expected to grow in exponentially by 2023.  Clearly Artificial Intelligence will be augmenting what humans are doing for decades to come. Customer facing workflow and engagement will be best handled by Chatbots with increased efficiency and lower variability, especially when it comes to high volume and repetitive tasks. In research 32% businesses have reported that Voice recognition will be one of the most widely used Artificial Intelligence features adopted in their businesses. In the near future customer voice and face recognition feature will be integrated with digital customer assistants.
 

But why does it become necessary to adopt chatbots as a strategy into businesses?

 

Many businesses are spending more R&D on AI than on employee training.  This investment can often result in processing improvements that are valued by customers, persistent and scale well.  All round a pretty good outcome.

  

1) 24/7 Availability

Chatbots aren’t human, therefore, they don’t function like one either. For some task’s humans are best placed and for others chatbots provide 24/7 service with much better effectiveness. Chatbots ability to interact and offer a problem solving method doesn’t get clogged up with the hour on clock. When a business serves global needs, having a chatbot assisting the clients at any given hour in a day can prove beneficial for business’s long term growth.

 

2) Less Spadework

Chatbots can enhance customer service as they are capable of handling far more parallel interactions than a human can. Quick responses and less groundwork enables businesses to save up to 66 percent of operating cost while reducing service time by 4 times. However, the matters that need human assistance are narrowed down by chatbots and then sent to humans. AI increases employee productivity by passing the right information about the customer problem.

 

3) Less errors

Chatbots are trained to do a few jobs effectively. Therefore, the cognitive technology infers customer’s queries and provide accurate and expected feedback. Chatbots have a memory to hold information and use it to take actions. They are less distracted and there is little room for discretion and hence more apt results are brought out.  

 

4) Customer engagement

Chatbots narrow down the problems and offer an accurate solution to customers. They can maintain conversations while deriving the maximum information required to provide with a helpful response. Studies have shown that chatbots tend to keep customers on websites for longer. Chatbots still do not provide as much effectiveness as a human, but they engage a customer much quickly, without them waiting.

 

5) Proactiveness

AI bots can lead the conversation very well, like informing the customer about the promotions and sales in a very effective way. Chatbots also enhance sales by offering customers tutorials, blog entries and images at the right time.

 

6) Transactions handling

It is not complex for chatbots to handle complex transactions. Bots can help customers book tickets, transfer money and even let customer send gifts, flowers to their loved ones.

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