Chatbots are everywhere. From eCommerce websites to customer support, chatbots have taken the global landscape by storm because of their numerous inherent benefits.
A chatbot is an AI-driven tool with the power to simulate human-like conversations with users to solve queries, provide customer support and perform other streamlined tasks. Over the years, chatbots have become a sophisticated tool, capable of performing natural conversations and making users happy with fast support.
According to an industry report, by 2020, more than 85% of customer interactions won’t require human involvement and chatbots will perform major customer service functions. Due to changing consumer preferences, 77% of users ages 18-34 have positive perceptions of brands that provide text customer support, an important element of AI-driven chatbot strategy. Per another industry report, about 75% of internet users have adopted some form of messengers for various functions.
AI chatbots raise a major question- is it beneficial for businesses to develop and implement chatbots? To analyze the utility of chatbot development and implementation, it is important to identify the benefits they provide for businesses.
1. Improve customer engagement and response times
The social media landscape has transformed the way consumers interact with brands and businesses. They now seek quick support and prefer brands with the potential to engage them using the right advice. Messaging apps and social media dominate every aspect of a business. Consumer interaction pattern changes have made conventional support and engagement channels obsolete. Chatbots offer real-time, 24/7 support for custom inquiries, are better-equipped for improved customer engagement and provide quick support at consumer-friendly times. These help businesses improve their connection with both target audiences and existing customers.
2. Provide cost-effective and reliable solutions for ever-increasing customer support requirements
When compared to human support teams, chatbots are more efficient and effective when lending customer support. They are active around the clock, provide accurate advice, are not easily distracted or deflected, and, if developed insightfully, provide reliable customer support for ever-increasing customer bases.
Once developed and implemented, chatbots can go on and on, 24 hours a day and 7 days a week, automatically, without intervention. Chatbots also do not require regular pay outs like a human team. They are a cheap and more cost-effective solution.
3. Leverage consumers global online behavior
According to a recent survey, 705% of the total youth population preferred text-based support and query resolution over phone call support. The advent of online social media platforms have transformed them. A change in behavior has resulted in even the millennial population looking forward to chat-based support. The combination of a behavioral shift and digital revolution provide great advantages to digital and AI-powered businesses.
Global eCommerce giants, like Amazon, have made people accustomed to digital empowerment. It provides great opportunities for forward-looking businesses to drive sales toward implementation of AI-powered chatbots.
4. Improve quality and quantity of sales leads to increase revenues
Chatbots can handle large quantities of data efficiently and effectively because they are AI-powered. They drive prospects further up the sales funnel, when implemented on a website. They solve buyer queries, provide additional information, and analyze online behavior to provide personalized advice that motivates users to buy products/services.
Chatbots make visitors feel secure, attended and better-serviced by engaging them in one-on-one interaction.This motivates them to contact the business for their services. Chatbot provide these benefits quickly and for minimal costs, which promise better lead nurturing and improved sales.
5. Improve business efficiency
Some repetitive activities can be automated. Chatbots help the backend teams handle these activities/requests faster and with related automated responses without human intervention. For instance, KUDI enhances business efficiencies to handle high volume requests related to money transfers, bill payments, and bank account detailed checks, using chatbots
In another example, Starbucks introduced a voice-activated chatbot to take orders at the outlets.It also can handle payments and enables individuals to place orders by speaking. The chatbot is improving customer service and turnaround times inside outlets by using advanced AI and voice-activated features.This delights customers and strengthens the brand’s commitment to serving better.
Chatbots are more efficient and effective in handling large data because they are AI-powered. This ensures a competitive advantage over others still struggling to become efficient because of inherent limitations of humans-powered processes.
AI-powered chatbots help businesses worldwide to streamline various processes, improve customer engagement, provide reliable customer support services and improve business profitability. It is the responsibility of the business owner to understand the benefits of and implement chatbots in existing structure for better results and improved business profitability. An entrepreneur interested in any of this should definitely consider chatbots and reap the benefits in the short as well as long run.
Sam Makad is an experienced writer and marketing consultant. His expertise lies on marketing and advertising. He helps small & medium enterprises to grow their business and overall ROI. You can follow him on Facebook, Twitter.