A chatbot is a virtual interlocutor who can answer standard customer questions.
It allows reducing the load on employees and waiting times for customers, as well as automates the company’s internal processes.
Chatbots are rarely sent to spam because it is easy for a customer to unsubscribe if the bot is no longer useful.
Read the post to learn more about the usefulness of chatbots for your business.
Eliza – The First Chatbot
It seems that the chat app development is something completely new. However, the first chatbot called Eliza was developed by MIT professor Joseph Weizenbaum back in 1966.
She imitated a human psychiatrist, functioning based on keywords. People shared their experiences with her, and she tried to help each of them.
For half a century, scientists have continued research in the field of artificial intelligence and machine learning.
But these were just experiments that did not pursue any practical goal. For example, in 1995, Richard Wallace developed the A.L.I.C.E, which has won the Loebner award for the most “human” AI.
However, Wallace did not create the bot to sell products or advise consumers.
Everything has changed in the last decade. Messengers such as WhatsApp, Facebook Messenger, Telegram, and others have gained huge popularity.
They have become the ideal platform for deploying chatbots. At the same time, large companies started to develop their virtual assistants.
In 2010, Apple launched Siri, then people got acquainted with Amazon Alexa, etc.
Today, many businesses are interested in this technology, while most modern companies have already integrated them into their websites.
How Do Chatbots Work?
Depending on the functionality, there are two main types of chatbots: rule-based (standard) and AI-based (smart or self-learning). Let’s study their differences in detail:
1. Rule-Based Chatbots
Such chatbots interact with the user based on the keywords in the request.
Often, the bot itself prompts the user to select a keyword since it is almost impossible to find all the words that a person can use in a question.
If the bot does not find the keywords embedded in its program in the request, it will not be able to answer. Typically, in such cases, the user will be redirected to a “real” employee.
2. Chatbots Based On AI
AI-based chatbots rely on NLP techniques, as well as speech recognition and text processing methods using neural networks.
Such bots will answer the user even if they have asked a non-standard question. The main advantage is the ability to self-learn. With such a bot, communication looks more realistic.
It seems that an AI-based bot is better in all regards, but it is not so obvious.
Before choosing a chatbot for business, decide on the tasks you want to automate.
Sometimes a rule-based chatbot can do just as well as a self-learning bot.
It is also worth noting that AI bots are suitable for companies that already have a lot of data to quickly train a neural network.
Why Use Chatbots In Business?
Today, chatbots are used in various areas – e-commerce, banks, insurance companies, media, etc. What processes does the chatbot automate?
- Making an application, accepting an order, booking a ticket, etc.;
- Technical support: answers customer questions about your product around the clock;
- Product recommendation: selects a suitable product for a customer based on a request or previous purchase experience;
- Mass mailing: timely notifies customers about promotions and sales;
- Collecting contact data: finds out from the user how to contact them and passes the info to the manager.
A bot reduces customer waiting time dramatically. Studies have confirmed that a robotic helpdesk responds three times faster than a real person.
This is probably the reason bots increase customer satisfaction by 24%. Also, according to a recent survey, companies using chatbots increased their sales by 67%.
How did it happen? Bots accompany and advise the client throughout the entire path to the purchase.
They personalize the user experience based on the previously collected data. Thus, bots are always ready to provide users with recommendations that will interest them.
Conclusion
Bots have become an integral part of the business. They help customers order food, book a plane ticket, issue a bank card or choose a product.
Many companies use chatbots as an addition to technical support. Besides, bots collect data about customers, thus, they personalize the interaction with them.
