Role Of Chatbot In Improving Customer Services
More than 74% of companies use chatbots, and according to statistics, by 2025, over 80% of companies will be using chatbots.
Have you ever wondered why these companies are rushing to use chatbots?
Read on to discover what chatbots do and how they have drastically improved customer services, which is also a great channel for business growth and success.
What Are Chatbots?
According to Oracle.com, a chatbot is a computer program that simulates and processes human conversation, allowing humans to interact with digital devices as if they were communicating with a real person. A chatbot is a piece of software powered by preprogrammed responses or artificial intelligence (AI) to answer questions without the need for a human operator. The word "chatbot" comes from the combination of "chat" and "robot."
The ease I experience when reaching out to customer services of some sites or companies, either for complaints or inquiries, and realizing it’s a chatbot I'm interacting with, is remarkable.
It may surprise you to know that chatbots have been around for over five decades. The first ever chatbot was developed by Joseph Weizenbaum at MIT laboratories in 1966. Joseph named the chatbot ELIZA.
From the inception of chatbots until today, there have been numerous advancements to develop higher performance chatbots, thanks to the latest technological advancements. This has also led to us having two main types of chatbots: rule-based, which follows predefined paths, and AI-powered, which uses machine learning to understand and respond to queries.
In one of the places I worked as a hotel manager, I always paid close attention to customer service and monitored staff's relationship with customers. I understand the importance of good customer service in enhancing business growth.
Chatbots were developed to support and boost customer service.
You wouldn't be happy heading to a company's site for inquiries and complaints, only to feel ignored for several minutes because they are attending to others, or simply because support agents aren't available at the moment. That's pretty annoying, right?
Now, let’s explore the roles of chatbots...
Available 24/7
Unlike human agents who may get tired and take breaks, chatbots don’t go for breaks. They work 24/7. No break, no shutdowns, or delays—unless technical glitches occur. Because chatbots work tirelessly without breaks, they reduce waiting times. Their programs run continuously, making it possible to reach out to customer service and get responses at any time of the day. They provide basic answers to customers' questions and transfer complex issues to human agents. Isn’t this amazing?
Multiple Queries Handling
You can agree with me that, when you walk into a company, organization, or business office for a complaint at the customer service desk, you’ll often be told to hold on while they attend to others. In the case of chatbots, it’s never so. Chatbots attend to everyone at the same time. We all know humans have limited ability to multitask, but machines don’t, especially those wired to multitask. No matter how many questions come in, chatbots respond to all of them simultaneously without a break. They only transfer complex cases to human agents.
Enhancing Experience
AI-powered chatbots can analyze customer data to offer personalized responses, making interactions more relevant and engaging. They collect customer feedback during interactions, helping businesses identify areas for improvement. They also provide consistent information and services, ensuring customers receive the same level of support every time.
Operational Cost Reduction
Hiring several customer service staff is costly compared to developing and maintaining a chatbot. Chatbots can significantly reduce operational costs for businesses by automating routine inquiries, allowing human agents to handle more complex issues.
The Impact of Chatbots on Businesses
Research shows that 77% of successful businesses generating leads with chatbots are online stores. In fact, this is a way of telling other online stores to pay attention to chatbots—there's a lot you can gain from them.
A company known as TELENOR noticed that customers' interest in phone communication had declined in recent years. They developed a chatbot called TELMI with Boost.ai. Using deep learning algorithms and natural language processing, TELMI interacts with customers at an advanced conversational level. Within a year, TELMI exceeded the company's business and return on investment (ROI) goals.
Challenges of Using Chatbots
Despite their benefits, chatbots also have challenges:
Training:
Chatbots need time and effort to be trained effectively. They need to understand frequently asked questions to provide accurate answers.
Customization:
Chatbots must be customized to fit the brand's voice and provide relevant responses. Inaccurate answers from a chatbot can confuse visitors. Chatbots demand message customization to speak in the brand's voice.
Conclusion
Chatbots offer numerous benefits for customer service, including 24/7 availability, handling multiple queries, reducing operational costs, and enhancing customer service. As technology continues to improve, we can expect even more advanced features and capabilities in the future.
If you're considering implementing chatbots in your customer service, now is the right time to dive in without a second thought.
Share your thoughts or experiences with chatbots in the comment section.