What are Chatbots
A chatbot is an AI based computer program that simulates human conversations. They are also known as digital assistants that understand human capabilities. Bots interpret and process the user requests and give prompt relevant answers.
Online chat conversations are conducted through voice as well as text and can be deployed across websites, mobile applications and messaging channels such as Facebook Messenger, Twitter or Whatsapp.
Why use chatbots
Chatbots streamline interactions between people and service enhancing both customer experiences and internal employee satisfaction. Simultaneously, chatbots offer organizations new opportunities to improve the customer engagement process and operation efficiency by reducing the customary cost of customer service.
Customer-facing industries stand to greatly cut expenditure thanks to conversational AI. By 2023, a study by Juniper Research suggests that the operational cost savings of implementing virtual agents in banking will reach $7.3 billion globally, far exceeding 2019 estimates of $209 million.
Benefits of Chatbots
- Cost savings: Research claimed that the cost savings from using chatbots in the Banking Industry is estimated at $209M in 2019
- Increased sales: Bots can be a frictionless platform for presenting users with recommendations which can smartly introduce customers to new products and services from your company. Bots can also boost sales because of their 24/7 availability and fast responses
- Increased customer interaction: Bots can be leveraged to increase customer engagement with timely tips and offers
- Reaching new customers: Bots are continuously active on social media platforms and helps companies reach new customers
- Gaining a deeper understanding of customers: Chatbots provide your business with detailed, actionable records of your customers’ greatest pain points, helping your company improve its products and services
- Endless patience: While customer reps and customers sometimes lose their patience, that is something bots are yet incapable of
- Programmability: Bots can be used to automate common tasks such as arranging meetings, providing advanced search functionality