What Is A Chatbot, And Why Is It Important For Customer Experience?

  • By Naaz Aniqua
  • 08-07-2019
  • Artificial Intelligence
what is a chatbot and why is it important for customer experience
Abbreviation of a chatbot is a computer program that simulates human conversations or online discussions through artificial intelligence. As a general rule, a chatbot will communicate with real people, but applications are being developed where two chat rooms can communicate with each other. These are used in applications such as e-commerce customer service, call centers, and internet games. ALICE is an example of a famous chatbot. Using artificial intelligence allows chatbots to respond to user questions more flexible.
Chatbots are software programs, which can include A.I. component, which is designed to interact with people through text or voice interfaces such as SMS, Facebook Messenger, Direct Message Twitter, Slack, Kik, Telegram and WeChat.
Chatbots are designed to simulate conversations with human users, especially through the internet, a chatbot allows a form of interaction between humans and machines.
Interactions occur through written or voice messages, they are assistants who communicate with humans via text messages, virtual companions integrated into websites, applications or instant messages and help entrepreneurs get closer to customers.
Alexa, Siri, Google Assistant is the best example of interaction under chatbot that is far from being able to communicate with human assistants in real life. When asking for chatbots like Siri complex questions that require context, the system fails to interpret the true meaning behind the question.
The interaction can be direct, like asking a bot about weather reports, or more complicated, like having a bot that solves problems with your internet service.
As AI technologies multiply, they become integral to business globally. They give businesses a competitive advantage because strategically designed and implemented chatbots can provide a miracle for businesses around the world.
AI chatbot and technology recognition is a brilliant way to outsource manual and non-judgmental work. This technology saves time, effort and money. With chatbots, businesses can concentrate and invest in skilled work.
This also substantially reduces staff workloads. As per research, the chatbot market is expected to reach $1.25 billion in 2025 at a CAGR of 24.3%.
As per the survey, 80% of businesses need chatbots in 2020. Companies such as Snap Travel, Sephora, 1–800 Flowers, Coca Cola, Nitro Café, and Marriott have started to see results. Here are some AI chatbot success stories.
Nitro Café: Nitro Café in LA utilizes Chatbot technology to reach more customers, increase engagement and increase orders by up to 20% and this messenger chat is designed for direct payments as well.
Sephora: Facebook Sephora's messenger has increased its makeover promise by 11%, Sephora managed to run ads on Facebook. Chatbot Sephora on Facebook messenger is the perfect beauty shopping assistant that offers tips and tutorials for all types of beauty products.
ASOS: ASB Chatbots Messenger helps reach 3.5x more people, increases 250% returns and increases the number of orders to 300%.
1–800 Flowers: 1-800-Flowers Messenger Chatbot is one of the first e-commerce chat bots available on FB Messenger, reporting that 70% of orders come from new customers.

1. Save Time
One of the great benefits of using chatbots in your business is that they can save time. For example, when used on your website, they can provide quick and automatic answers to most questions. Its use prevents customers from waiting a day or longer to receive responses as they would in the past.
This allows your business to serve more people while increasing productivity and reducing costs.
2. Save Money
The use of Chatbot can be cheaper than hiring more workers. The cost of building a chatbot can range from 2K to 10K or more depending on the complexity required.
While that might sound like a lot, once made you might save it in the long run. One reason is that you don't have to pay vacation time, sick days, or contribute to the 401K. It won't get hurt while working and needs medical care too.
3. Provide Greater Customer Satisfaction
Another benefit of using chatbots for your business is that it provides great customer satisfaction. The chatbot works 24 hours a day and doesn't need to sleep, which means it's always available.
Customers who open your website at night can immediately ask questions and get answers. If they have product questions, they might get the answers they need to complete the sale. This can then increase your business profits.
Frustrated customers who don't get quick answers, on the other hand, can leave your website and never return. Chatbots can eliminate that scenario and help you keep a good relationship with your customers.
4. Increase the Customer Base
There are other benefits to using chatbots in your business. They can help you reach more people who can increase your customer base.
Because chatbots can be used in many applications, you can use them to help grow your business. Chatbots can answer several questions at once.
5. Reduce errors
Unfortunately, people who handle customer service questions and other problems can make mistakes. They can forget things, change numbers, and make other types of mistakes.
Based on the questions asked they will always give the correct answer. This makes it a great asset when used in your business.
6. Add Good Humor
One more benefit of using chatbots in your business is that they add good humor. You don't need to worry about chat being in a bad mood. They will never turn customers away with responses, attitudes, or angry views.
They can be programmed to have a little humor that can make them look more human. This makes customers feel comfortable and makes their experience with your business more satisfying.
It is important to make your business as good as possible to produce greater success and profits. As you can see, there are benefits to using chatbots in your business that can help that happen.
The Chatbot application makes smooth interaction between people and services, enhancing the customer experience. Chatbots offers companies new opportunities to improve customer engagement processes and operational efficiency by reducing typical customer service costs.
In order to succeed in any field, a chatbot solution must be able to perform these two tasks effectively. One of the biggest benefits of Chatbot in your business is being able to save time. When using it on any site they can provide quick and automatic answers to each question. Using Chatbot prevents customers from waiting a day or longer to receive a response.
Chatbots are made to alleviate the pain which industry is facing today. The purpose of a chatbot is to support and scale business teams in their relationships with customers. It can live in big chat applications like Facebook Messenger, Slack, Telegram, Text Messages, etc.

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Naaz Aniqua

Naaz Aniqua is an influential digital marketer works at apps development company in Indianapolis and helps to rank a website on search engine and build cultivating potential customers and make an audience base. She is very good content and article writer and contributing her article and blogs regularly which includes balanced informative with IT needs.