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You and your team are busy helping people with their car service; all types of maintenance requests and repair asks. Business is steady, but there are times when the phone lines are jammed with customers asking about appointment availability, parts pricing, or simply where the shop is located.
Or perhaps you're sitting in the hotel breakroom now, and when you go back after lunch you'll start fielding guest inquiries about room rates, amenities, and local attractions again. And this takes up a big part of your day, not leaving much room for your other tasks.
Sound familiar? You're not alone. Many small to medium-sized businesses face the same challenges. Constantly juggle of customer queries, daily tasks, efficiency and... in general workload (while trying not to get overwhelmed). That's why today we're looking at the benefits of AI chatbots. Because AI bots are here to help!
AI chabots: the new service teammember
A digital assistant, always available, capable of handling routine inquiries with speed and accuracy? Enter the AI chatbot. These virtual representatives are more than just digital helpers; they're potential game-changers with a wide range of AI chatbot benefits.
You see, there are many benefits of a chatbot. In this guide, we will discuss only 20 of them. You will also learn how to solve challenges associated with the chatbots.
Let's dive in!
3 Types of chatbots
1. Rule-Based chatbots
Rules-based bots work on the if-then-else logic. They already have a set of answers that will be triggered based on the input from the customer. These bots are ideal for businesses that already know what type of questions their client can ask.
These bots don’t require training since they need to answer only a set of queries. However, you’ll need to feed it a list of different words or synonyms to tackle every possible vocabulary your customer may use. Otherwise, the bot will not be able to respond appropriately.
2. AI chatbots
Any bot that utilises NLP (natural language processing) and machine learning is an AI chatbot. These bots have a larger data set and can have a normal conversation almost like a human. However, you will need some time to train them so they can adapt to the tone and voice of your company.
We’ll be going into the details of the benefits of AI chatbots later. But for now, note this: leveraging the AI chatbot advantages can significantly enhance customer interactions, providing quick responses, personalised experiences, and efficient problem-solving.
💡Interested to see what an AI bot looks like? Check one out here.
3. Hybrid chatbots
Hybrid chatbots have both the benefits of AI chatbots and rule-based bots. This makes them ideal customer care bots for many businesses.
These bots can use automated responses and live chat technology at the same time. It means they can easily have a normal conversation with a customer and will notify your team when an unexpected query is entered. The seamless transfer of chat will maintain the flow of conversation with the client without wasting any time.
20 AI Chatbot cenefits for businesses & customers
AI chatbots can bring several benefits to your business and customers. Some of them include:
1. Available 24/7
Convenience is the first thing that consumers demand when interacting with any business. However, it is not easy to address customer queries 24/7. Utilising AI chatbots can help you solve this issue and engage with customers easily without the restriction of time zones and non-business hours.
💡For example, medicare companies can use chatbots to assist patients in scheduling appointments or answering basic health questions. This not only saves time but also provides on-time assistance for patients.
2. Enhanced user experience
Chatbots collect customer data and use it to improve future interactions. You can use the collected data to improve your current AI chatbot. You can also use it to improve lead generation and marketing of your products or services.
Another benefit of an AI chatbot is that you can transfer the collected data to other business tools like marketing automation software, customer service tools, or CRM.
You can use the collected data for:
- Improving messaging to make the customer journey smoother.
- Recommend relevant services or products based on the activity of the user or consumer.
- Promote new and relevant products or services.
- Pop-out cart-related questions to avoid cart abandonment.
3. Grow sales with conversational AI
AI chatbots are excellent tools for increasing conversions because of their simplicity of use and speed. These chat services can simulate human interaction with clients, assisting them with any problems and directing them toward conversion without deviating from the purchase process.
By having an AI chatbot that is constantly ready to provide customers with instant answers to their inquiries, your company can provide customers with an unhindered shopping experience. And it can also get you better client satisfaction and that will lead to recurring business.
4. Multilingual support
With the advancement in e-commerce technology, shopping is no longer limited to a certain border. A person sitting in one corner of the world can now place an order regardless of border barriers. However, this situation demands a solution for the communication barrier. And chatbots can help you solve this issue with multilingual support.
An AI chatbot can ask the customer’s preferred language before starting to communicate. They can even detect the language with the help of language learning models. This feature is considered to be one of the best benefits of chatbots in customer service since it helps your business grow exceptionally.
5. Provide proactive customer service
Imagine a virtual assistant that's always on, ready to engage with customers, anticipate their needs, and even boost sales. That's the power of an AI chatbot.
By closely monitoring website activity, chatbots can proactively identify potential customers and offer assistance. Whether it's answering frequently asked questions, guiding visitors through complex processes, or simply providing friendly support, chatbots can handle a wide range of interactions.
💡For instance, an e-commerce store can deploy a chatbot to greet visitors, suggest products based on their browsing history, and even offer personalised recommendations. As customer engagement deepens, the chatbot can seamlessly transition the conversation to a human sales representative when necessary, ensuring a smooth and efficient customer journey.
6. Omnichannel support
Customers use different channels to connect with brands like phones, social media, email, WhatsApp, or messaging apps. They are expecting to have seamless conversations from start to finish no matter which channel they are using.
As a business, it can be hard to monitor all these communication channels simultaneously. But you can stand out from the competition by utilising the benefits of a chatbot.
💡An omnichannel chatbot can handle all the conversations seamlessly across different platforms. Tools like Trengo bring your Facebook comments, Instagram DMs, live chat messages, and WhatsApp inquiries all under one roof for you to tackle. It doesn't get easier than that!
7. Minimise customer requests
One of the chatbot benefits for businesses is minimising customer inquiries. AI chatbots handle repetitive tasks, answer general questions, and can also offer self-service options. This allows customer care agents to focus on other complex issues or queries that require human involvement.
These requests can vary based on a business’s product, service, or industry, but commonly include:
Some automated queries that chatbots can solve include:
- Providing tracking information and order status
- Sharing product or service details
- Helping in refunds and returns
- Helping customers identify payment issues
- Asking for feedback
- Offering self-service
💡A good example is Ferryscanner who employed Trengo’s custom flowbot and used it to ask for the booking code from every customer before moving the conversation to a human. This saved their team’s time and helped them manage a 700% increase in queries during peak season.
📚 Read more: Flowbot for customer service: the ultimate guide
8. Understand customer intent and sentiment
AI-powered advanced bots are smart enough to figure out the intent and sentiment of customers using their language and wording.
Client intent: AI can identify the needs of the client, including the nature of their query using the customer’s vocabulary and previous interactions.
Customer sentiment: AI can recognise whether a message is neutral, good, or negative.
AI can provide the agent with these details, providing them with further context to help them decide how to conduct a handoff transaction. The agent can use this information to customise messages and prevent possible tensions.
9. Improve customer engagement
One of the benefits of AI chatbots is that they can improve communication with your customers. But they can also help you to first establish meaningful customer engagement and interactions.
A chatbot can help you to:
- Send proactive messages regarding payment issues, order status, or tracking numbers.
- Collect customer feedback after solving each query.
- Engage in real-time or hold asynchronous conversations across all channels and meet customer requirements.
- Customise your message to match the tone and voice of your brand.
10. Streamline service with routing
Chatbots can handle several communicative tasks and basic customer queries. However, sometimes a human will be needed for complete customer care service.
With the help of AI, you can enhance this human experience as well. The AI chatbots can collect necessary data while communicating with consumers. And then share it with the agent during routing. The seamless data transfer allows the agent to have a smooth conversation with the client without repeating the questions.
11. Easy A/B testing
Businesses can test out various messaging strategies with AI bots to determine which ones are most effective. Certain chatbot platforms allow you to run A/B testing that presents customers with alternative conversational experiences.
For example, you can have a chatbot that asks how their day is going for half of the customers and a bot that asks if any help is needed for the other half of the customers. Based on the response you can identify which bot performed well for your clients.
12. Enhance your agent hiring and training process
Chatbots are revolutionising the way businesses onboard and train their employees. The application of chatbots for hiring and training employees is one of the best AI chatbot advantages. Imagine a tireless virtual assistant, always ready to answer questions, provide guidance, and even offer personalised learning resources. That's the power of an AI chatbot in the workplace.
By deploying a chatbot, organisations can streamline the hiring process and provide immediate support to potential candidates. Once hired, employees can leverage the chatbot as a dedicated learning companion, accessing relevant training materials and seeking clarification whenever needed. Moreover, chatbots can play a crucial role in fostering a strong company culture by introducing new hires to company values, policies, and expectations.
13. Cut down costs
All businesses want to cut down their costs and boost their annual revenue. Technology is one of the best ways to reduce expenditure, improve productivity, and increase profits. According to research, businesses that use AI bots have seen 67% sales growth annually.
Chatbots do demand an upfront investment, however they can save you money in the long run. They handle basic repetitive tasks for you so you and your team can focus on other important things. This also reduces the need for a huge customer care team since you will only need a few people to handle specialised tasks.
14. Maintain your brand voice
Building brand identity requires maintaining a consistent brand messaging. Since chatbots are objective and impartial, they can deliver messages with a consistent tone in all of their interactions. This similar tone across platforms can help brands win customer trust.
The cherry on top, you can customise a voice chatbot to speak in the tone and voice of your ambassador. Also, you can change the look and feel of the live chatbots on your website according to the personality of your brand.
15. Reduce bounce rate
Your bounce rate can vary depending on the seriousness of your leads when they open your website. Usually, visitors bounce away right after opening the first page. However, a chatbot can help you engage your ideal clients before they close the page.
💡For example, if the user cannot find a particular colour of a shirt, the chatbot can assist them by directing them to the respective page.
16. Easy checkout
Chatbots can take orders immediately from the chat window or route customers to the checkout page for a seamless transaction. As a result, a potential consumer will have to put in less work during the checkout process. This reduces obstacles to purchases and enhances the customer experience.
💡For instance, when placing a trouser order using a chatbot, a customer can select their preferred size, color, and style before they are sent to the checkout page directly.
17. Enhanced lead generation
Chatbots are not just about having a conversation with a prospect. They can also help you in improving lead generation.
AI bots collect customer data while having a conversation with a customer. Now, your marketing team can utilise this data to execute better marketing campaigns and lead-gen projects. The data can help you determine consumer insights and identify customer trends and behaviours that you can use in your marketing.
Some of the pieces of information AI chatbots can provide:
- Preferences of consumer
- Pages that were visited
- Demographics of the customer
- What language they were speaking?
18. Communicate with multiple consumers
Multiple consumers can try to connect with your customer care at the same time. If you are still stuck with the same queue system, you may end up losing a few of the clients. Also, you will need extra cost to employ more agents to solve this issue.
Alternatively, an AI chatbot can interact, engage, and solve queries for multiple people at the same time.
19. Scalable with your business
The benefits of a chatbot also include scalability. These digital assistants can effortlessly handle increasing customer volumes without requiring a proportional increase in your workforce. By training your chatbot to align with your business goals, you can ensure it consistently delivers exceptional customer experiences without straining your budget.
As your business grows and website traffic surges, so too will the demands on your chatbot. To maintain optimal performance, regular updates are essential. These updates not only enhance the chatbot's ability to handle increased interactions but also allow for the storage of growing conversation data, ensuring continuous improvement and personalised experiences for your customers.
20. Better personalisation
Consumers crave personalised experiences. Generic, robotic interactions can leave a sour taste. This is where AI chatbots shine. By tapping into valuable customer insights, chatbots can offer tailored interactions that resonate with individuals.
Imagine a chatbot that knows your preferences, purchase history, and browsing behaviour. This level of personalisation is achievable by integrating the chatbot with your CRM system. By accessing a wealth of customer data, the chatbot can craft responses and recommendations that feel genuinely relevant.
In highly competitive industries like e-commerce, personalisation is key to customer loyalty. When customers feel understood and valued, they are more likely to return and make repeat purchases.
💡 69% of customers appreciate personalisation as long as it is based on the information they explicitly share with brands.
Chatbot challenges and how to fix them?
Like any other technology, there are challenges and benefits of AI chatbots.
So, now let’s have a look at the challenges you may face with chatbots.
Setup and maintenance
Employees need time to learn and understand whenever a new technology is installed in a company. The same goes for chatbots. On average, it can take two weeks to set up and understand the functionalities of a chatbot.
Moreover, bots also demand regular maintenance and optimisation. Like whenever you make a change in your product or service, ensure that also update the answer in the chatbot. Also, go through old chats routinely to know if there is any room for improvement.
Bots don’t have emotions
Bots are machines so they don’t have any emotions. So no matter how much you train the bot it will not be able to detect emotions like happiness, sadness, or anger.
For example, a user is lashing out because of the wrong order sent by the company. They will expect empathy in such situations and will need customer care to go out of their way to assist them. But instead, the user gets a cold response from the bot. This experience will put a negative impression on your company that may impact your revenue.
The ideal solution for this problem is to deploy a bot that can detect when a customer needs human interaction. Also, use fallbacks! When using the right AI bot it'll be possible to hand conversations over to your customer care agent. Who can jump in and help out.
Limited features & functionality
One of the worst disadvantages of AI chatbots is their limited features and functionalities. You cannot make them do anything out of their predefined tasks. Yes, they can have good communication, but still, they are not entirely replaceable with your human agents.
What should you do to solve this issue? Do your research and select the best chatbot for your business. Compare the features of different bots and then make your final call.
Advantages & disadvantages of using AI chatbot for business
We have discussed the pros and cons of AI chatbots in detail. Now, here is a review chart of all the advantages and disadvantages of AI chatbots for your business.
Pros
Cons
- Get more leads
- Increase your sales
- Reduce costs
- Enhance customer engagement
- Improve marketing
- Reduce bounce rate
- Stay connected with consumers 24/7
- Multilingual support
- Enhanced personalization
- Easy checkout
- Proactive customer service
- Omnichannel presence available
- It takes time to learn and implement a chatbot
- Bots cannot provide emotional support
- Bots can have limited functionality
Tips and strategies for implementation of a successful AI chatbot
Always keep room for a human agent
Not every situation is manageable for an AI bot and not everyone wants to interact with a chatbot. So always try to give your visitors an option to connect with a human being. Also, ensure that it doesn’t take forever to reach an agent. Keep it simple and obvious.
Be honest with your clients
With the advancement in technology, it is getting harder to differentiate between a bot and a human being. It is a good thing for your business, but you should never use technology to trick your customers.
So, if your bot is taking charge of communication ensure that your customer knows about it. The transparency will help you build a good relationship with your clients.
Use efficient training data
The efficiency of your AI chatbot will depend on the data you train it on. If you wish your bot to stay up to date and have relevant conversations, invest in updating its existing data based on your company and industry trends.
Regularly monitor and test your chatbot
It is crucial to regularly test and monitor your bot’s performance. It will help you to remove unhelpful answers or any solutions that irritate the consumers. Chatbots need supervision since they are not a set-it-and-forget solution.
Collect customer feedback
Utilise metrics such as Customer Satisfaction (CSAT) and Customer Effort Score (CES) to get immediate customer feedback about their interactions with your chatbots.
Summing things up: how does the AIi chatbot benefit you?
The benefits of AI chatbots are undeniable. By harnessing their potential, businesses can significantly enhance customer interactions, boost efficiency, and drive growth. From providing round-the-clock support to delivering personalised experiences, chatbots are transforming the way companies connect with their audience.
The benefits of chatbots in customer service extend far beyond cost savings; they contribute to building stronger, more loyal customer relationships.
Ready to unlock the power of AI chatbots for your business? Explore more benefits and discover how our solution can revolutionise your operations.
