Blog: Chatbots Sound Great, But are They Really Useful for Businesses?
The growth of e-commerce over the past few years has been exponential. Companies need effective communication with their customers to ensure success.
Chatbots which were in their nascent a few years ago are now being increasingly adopted by organisations of all sizes. Additionally, chatbots are expected to grow in the future.
A chatbots’ ability to understand and respond to customers’ questions make them a popular and a powerful application. This has encouraged companies to include chatbots as an integral part of their operations.
Chatbots help companies by offering better customer engagement. In turn, this drives companies to grow stronger globally through their outreach. Benefits also include saving time and money as well as optimally use human resources.
What’s at Stake?
The global chatbot market is likely to exceed USD 5 Billion by 2023, from USD 1 Billion in 2017. It has the potential to open new avenues for companies towards improved customer service and problem resolution.
Chatbots can empower large companies to use human resources more efficiently in their organization. Chatbots can also help in improving staff productivity.
How are They Useful for Businesses?
Chatbots help increase operational efficiency of organizations by reducing the use of resources in backend support. Companies can augment their human resources using chatbot technologies. People don’t have to carry out mundane tasks which can be done by a chatbot.
Chatbots simplify tasks when companies engage with their customers through online communication and can be used for a vibrant and interactive marketing campaign. They can be used in social media platforms naturally, further increasing reach, leading to more frequent interactions with customers and increasing business volume.
Here are some reasons why chatbots are useful for businesses.
No One Likes Waiting
One of the biggest things that chatbots bring to the table is their ability to take a huge burden off customer support. Unlike executives who cannot handle more than 3 or 4 customers at a time in real-time conversations, chatbots can tackle many customers at once.
Conventional CRM forces customers to wait to have their grievances addressed. In addition to the problems they’re facing, the long wait adds to a customer’s anxiety.
They’re Smart and Quick
Customers prefer quick and immediate responses as opposed to slow and tedious email threads. The fact that customers can get quick responses gives credence to chatbots. Chatbots are a better alternative to both Interactive Voice Response mechanism and email resolution methods. Chatbots are trained to respond with relevant and precise answers in an instant.
Easy to Deploy and Use
Chatbots are built using an inclusive technology that makes it possible to have engaging conversations with people. It also makes way for brand extension — a strategy where a company marketing an established product uses the same name in a different category.
A Happy Customer Stays
Customers whose problems are solved are more likely to stay loyal to the company, instead of migrating to the competitor. In fact, customers will be receptive to receive information about new offers and products. Developers are training chatbots to interact with customers like a friend.
This informality is likely to create a shift from conventional marketing techniques towards revolutionary methods. These are times where going ‘mobile and digital first’ is the order of the day. Companies use chatbots during aggressive marketing campaigns to outmaneuver their competition.
Surveys are Passé
A chatbot can present a specified set of questions leading to higher conversion rates and more importantly to give insights into quality of service
This is much better than conventional feedback surveys, with multiple questions and answer options can even lead to customers closing the website window. This happens since feedback surveys are often long and repetitive.
On the other hand, chatbots can do a quick survey and ask the right number of questions based on visitor response.
Chabots Convert Visitors to Customers
The number of people who visit a website isn’t an accurate measure of whether or not they’re customers. The modern generation are much more open when it comes to interacting with chatbots and don’t hesitate to share information. A chatbot begins a conversation with visitors, generates leads, and improves brand image. More often than not, website visitors tend to find chatbots a welcome addition to websites. They can quickly navigate and find whatever they’re looking for.
They Can be a Personal Coach
Over a period of time, a chatbot can serve as a personal coach, offering people tips on finance management, health & fitness, and travel. Chatbots can remember people’s choices and make suggestions for their users’ benefit. They can serve as a medium for self-promotion as well.
They can Reduce Cart Abandonment
E-commerce companies face a challenge when customers abandon their carts and leave without completing the purchase. A high cart abandonment rate comes in the way of maximizing profits. Here, chatbots can remind customers about their orders and increase conversion rates.
Who Stands to Gain from Chatbot Adoption?
Managers who are engaged in formulating a digital strategy for their organisations will benefit. A chatbot can help in answering FAQs, which can bridge the gap between a customer’s question and the answer they’re looking for. They are designed to record data, trends, and metrics to help in monitoring interactions to help improve customer service.
Insurance, banking, health and e-commerce are some sectors where chatbots are likely to find a strong presence. Cost savings, a lean team to handle customer grievances are some gains. Companies will be able to shift manpower to more productive activities.
Companies the world over will make an estimated savings of $ 11 billion by 2023, against $ 6 billion last year. According to a report from Juniper, the retail industry is likely to be the biggest benefactor. It will not only save money, but also precious man-hours.
Organizations all over the globe are trying to come up with new initiatives to make their workplaces more productive. Chatbots can help here too. Automation can create a lot of free time to enhance efficiency or allow people to devote that time for creative work.
With advancements in AI technology, chatbots will soon become integral in companies’ operations. The list of immense benefits chatbots have for companies is bound to grow in the years to come and can also be fine-tuned when the need arises. There is little doubt that the number of complex tasks that will be handled by chatbots will also grow exponentially in the future.
If you’re interested in knowing more about how chatbots can help you and your company, check out Yekaliva. Yekaliva uses AI to create an insanely smart chatbot that can speak to its visitors and boost site engagement.