Have you ever tried contacting customer service and finding yourself chatting with a virtual assistant? Virtual assistants are one way chatbots can manifest in the modern days. Chatbots have become increasingly common as businesses have begun to digitize their operations. Although chatbots have been around since the 1960s, their current iterations utilize advanced artificial intelligence technologies such as machine learning and natural language processing to create more human-like conversations. Chatbots are often used in the customer service sector to answer questions, resolve issues, and provide support to customers. In addition, chatbots can also help improve overall customer experience quality. If you want to learn more about how chatbots can help your business, read this article.
How do Chatbots Work?
Chatbots are computer programs that simulate human conversation. They are often used in customer service applications to answer questions and provide support. There are two types of chatbots, rule-based chatbots, and AI-based chatbots. Rule-based chatbots operate based on a set of predetermined rules. Although this type of chatbot is outdated, they are simpler to create. One big drawback of rule-based chatbots is that they can’t respond to complex questions. AI-based chatbots on the other hand, use natural language processing and machine learning. Natural language processing is a field of computer science that deals with the interaction between computers and human (natural) languages. Machine learning is a field of computer science that gives computers the ability to learn without being explicitly programmed, when both of those technologies are combined, the chatbot can respond to complex questions and can generate versatile human-like answers based on the query. Feedback from customers is needed to improve the quality of chatbot responses.
Chatbots can be connected to websites, applications, emails, or messaging apps such as SMS, Line, or WhatsApp. It allows businesses to reach an extensive range of customers and provide them with convenient and easy access to service.
Why are Chatbots so Popular?
Chatbots can help automate the monotonous and repetitive task of answering frequently asked questions and concerns. Aside from that, there are many more reasons why chatbots are becoming increasingly popular in businesses. Those are:
- 24-hour customer service. Chatbots can provide 24-hour customer service, which can be a vital advantage for businesses that operate internationally or have customers who work long hours.
- Time efficiency. Chatbots can save time by condensing FAQs into a single, easy-to-use interface. This can be especially helpful for businesses that receive a lot of customer inquiries.
- Flexibility. Chatbots can be programmed to each business’s needs. This means that businesses can customize their chatbots to provide specific information and support their customer’s needs.
The graph above from a survey by Userlike shows the positive aspects that consumers experience from the use of chatbots. More than 60% of the people surveyed said that chatbots can answer inquiries quickly. Chatbots can automatically send recommendations and answers without needing time to type them out manually. More than 40% of people surveyed also say that the availability of chatbots to assist outside business hours is a positive aspect.
According to a report on customer experience by Zendesk, 64% of businesses polled in Asia-Pacific say that the performance of AI-assisted chatbots had increased significantly from 2022 to 2023. The same report says that 73% of customers in Asia-Pacific want chatbots that simulate human service.
There are also many benefits to using chatbots. Here are some examples of them:
- Help the sales process by collecting leads. Chatbots can be programmed to process leads. The data from the leads collected can be used to determine customer preferences. These preferences can be used as guidelines for future customer recommendations.
- Solve and answer common problems and questions. Chatbots can be programmed to answer and tend to common questions and inquiries. This can help customer service to save time and energy by focusing their energy on more complex issues that require human help.
- Improve customer experience. Customers can have a convenient way to reach out to the business. It boosts efficiency and flexibility.
- Save costs. Having a chatbot can help reallocate human resources in customer service. In the long run, this can help save costs.
Would AI Chatbots Take Away Jobs?
The popularity of AI-powered chatbots may arouse concerns about job security, especially in the customer service sector. As with any other AI-based technology, AI chatbots have the potential to ‘take away’ jobs. It is crucial to note that AI chatbots are not a replacement for human customer service agents. Human customer service agents are still needed to deal with more complex problems. AI chatbots can help simplify the tasks of human customer service agents by taking care of undemanding tasks, such as responding to commonly asked questions and concerns. Once the chatbot encounters a problem that it can’t resolve, the chatbot can redirect the customer to a human customer service agent. This can free human customer service agents to focus on more complex problems. If you’re interested to read more about the impacts of AI on job security, click here.
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Last modified: September 25, 2023
